3 Things to Consider Before Scaling Your Business

There are many advantages to running your own business. Firstly, you can be your own boss (BYOB), with hours and a workload that suits your lifestyle. Secondly, you can live your passion, investing time, and effort into something that really matters to you. Thirdly, you’ll have complete control over your business — including deciding on the right time for growth.

At the end of the day, every small business owner wants their business to grow, but not every small business has the capability to do so.

There are several considerations that need to be taken into account before scaling is a possibility. Without these considerations, you may find yourself struggling more than you were even before you scaled up.

So, here’s a quick list of things you need to keep in mind before pushing for more growth.

Know When To Scale Your Business

The first and most basic thing you need to consider is timing. Many companies have gone south because they scaled up too soon. While others have stagnated because they waited too long, and were thus unable to adapt to changing times and demand. Finding the middle ground between these two spots is very difficult, and takes careful observation and market research.

To make it easier on small business owners, Bplans has put together a shortlist of signs that prove that it’s time to start scaling up.

scaling up business

Some of the signs such as turning down business opportunities due to a lack of inventory or staff, surpassing goals, strong cash flow, and sales are the indicators of a growing business.

If your product is selling then the next question you should ask if you have the infrastructure to scale.

Once all these factors come together, you’ll find that it’s ideal, if not imperative, that you begin to broaden your horizons.

It should also be noted, however, that you shouldn’t be waiting around for these things to happen. You should already have a plan of action ready to execute. This way, by the time you hit that sweet spot you’re ready to take advantage of them and smoothly transition into bigger and better things.

Choose The Company Structure That Complements Scaling Up

One aspect integral to scaling any business is, of course, your business structure. Before you even register your company, you need to determine what kind of company it’s going to be.

It may be tempting to go the usual route of a sole proprietorship or partnership. It’s easier to start with these structures as these business models are easiest to understand. However, what might work for your fledgling company today may not be beneficial to you in two, five, or ten years down the line.

You may want to consider other, more flexible types such as S corporations or Limited Liability Companies (LLCs). S corporations and LLCs are business models that protect the owner’s personal assets by offering liability protection and much more.

guide to forming an LLC on ZenBusiness highlights the main difference between these two types of legal structures. This difference boils down to flexibility and simplicity. LLCs are easier to adjust and restructure, and in many ways offer simpler processes than S corporations. This can be especially advantageous to small business owners, who will, of course, learn and grow with their businesses.

Hiring Right Employees

The next thing you’ll need to consider is, of course, your staff. Growing your business means that you’ll be growing your staff, as well. It’s not recommended to scale up your company with the same amount of employees that you had when you started out.

Goals change, capacities increases and your customers would expect more. You need to make sure that your business is ready to face the challenge.

But how can you address this without compromising the quality of your products and services?

The solution is simple, but challenging to execute: hire good talent. It is people who are going to drive your company to new heights. We’ve previously shared key tips on hiring the best talent for your company.

While the post is specific to hiring in tech, it has advice that can be applied to nearly every industry. This includes tips like listening to what candidates want, checking out freelance talent, coordinating with skilled recruiters, and investing in the best applicant tracking system for small businesses.

You get what you invest in, and hiring good staff is always worth the time and effort. If you are in the process of scaling up, good staff is essential for the growth of the company.


While it’s important to take the initiative, making monumental changes to your business without thinking it through and making the necessary preparations just isn’t the way to go. This could be detrimental and end up stunting the growth of your business and holding you back.

Remember that you should never be cutting corners when it comes to your business. By keeping these things in mind and going through the proper steps, you are ensuring the long-term success of your business.

Amit Gawande

Amit Gawande

Amit Gawande is a Co-Founder of CVViZ, an AI recruiting software. He has more than 15 years of experience in software development and leading large teams. He has built products using NLP and machine learning. He has recruited engineers, programmers, marketing and sales people for his organizations. He believes in using technology for solving real-life problems.

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