Scaling Your Small Business: Smart Strategies for Growth

As small businesses evolve, there often comes a pivotal moment when the founder can no longer manage every task alone. To effectively scale and unlock the full potential of the business, bringing in additional support becomes essential.

1. Involve Family and Friends for Initial Support

Leveraging the skills of family and friends can provide a low-risk way to introduce external support. “Trust and reliability are crucial in any business relationship,” notes Lucie Macleod, founder and CEO of Hair Syrup. “Involving friends and family minimizes the risk of betrayal and enhances teamwork through a deeper level of trust.”

However, this approach can strain personal relationships. Lucie reflects on her experience: “Working with my mother for over three years has presented challenges, particularly in maintaining professional boundaries. Discussions can become overwhelmingly work-focused.”

Rick Smith, founder of Forbes Burton, cautions that while involving loved ones may lessen financial risks, it can disrupt daily operations. “Informal helpers may not take their roles seriously, affecting overall productivity,” he explains.

2. Utilize Freelancers and Contractors for Flexible Solutions

Hiring freelancers or contractors can provide significant advantages, particularly in scalability. “Employers can engage contractors for specific projects without lengthy commitments,” explains Jake Darlington, SME manager at Sapphire Contracting.

Amy Dawson, owner of Gatekeeper Communications, emphasizes the need to find reliable contractors. “I sought an extension of my capabilities, opting for experienced individuals over cheaper, less qualified options.”

To ensure smooth operations, establish clear agreements. “Avoid informal arrangements,” advises Amy Pierechod, partner at Gordons. “Formal contracts should define rights and obligations to prevent misunderstandings.”

It’s also vital to adhere to legal standards. Lydia Wawiye, a litigation solicitor at Parfitt Cresswell, warns, “Incorrectly classifying workers can lead to legal complications, especially if a contractor is later identified as an employee.”

3. Hire Employees for Long-Term Growth

Hiring full-time employees represents a commitment to achieving sustained growth. “Employees provide reliability and ownership of their roles, which contributes to a deeper understanding of the business compared to agency staff,” notes Jake Darlington.

A phased approach can ease the transition. “Starting with part-time staff allows businesses to gauge demand without significant upfront costs,” suggests Yannick Dillen, professor at Vlerick Business School. “Ensure that additional costs align with expected revenue increases to justify hiring.”

Business owners must also navigate legal requirements. Ella Bond, senior employment law solicitor at Harper James, emphasizes compliance with employment laws, including issuing contracts, setting up PAYE, and adhering to minimum wage standards.

4. Explore Franchising as a Growth Strategy

For some businesses, franchising can be an effective way to expand, particularly for local brands. Caroline Gowing and Vicky Matthews, co-founders of Pink Spaghetti, found that franchisees could establish successful regional operations better than employed managers. “You should ideally have two years of profitable trading before pursuing franchising,” Caroline advises.

5. Craft Your Tailored Growth Strategy

Choosing the right strategy requires assessing your business’s current state and future ambitions. “Testing strategies on a smaller scale provides insights before committing fully,” suggests Yannick Dillen. “Listen closely to customer needs; a well-structured business plan must align with client demands.”

Read More for Expert Insights

How to grow a business with a tricky-to-scale product – Hear from Elizabeth McKenna, a former ‘The Apprentice’ contestant, on scaling challenging products.

Three tips on growing your restaurant business – Chef Richard Irvine shares actionable advice to boost your restaurant.

Setting up a franchise vs. growing a business organically – Franchising expert Rik Hellewell outlines the benefits of franchising for business expansion.