Has your business grown so much that simple tasks are turning into huge challenges? You might be up against the Law of Diminishing Returns. Here’s what I mean and my top three solutions for scaling a growing business:
Scalability – the capacity to be changed in size or scale.
The Law of Diminishing Returns – used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.
Growing a business is exciting! However, if you are burnt out and not seeing your profits increase, you might be asking yourself…is all this hard work even worth it!? The answer is MAYBE – but something will have to change.
(Similar to: How To Increase Prices To Grow Your Business)
Scaling A Growing Business
1. Take a look at your operations
Can you become more efficient by changing up the workflow? The answer could be investing in software or a reorganization that creates efficiencies and saves precious resources.
2. Take a look at your expenses
Are you spending too much to operate? If you find yourself purchasing in bulk, arrange for a special discount with your vendors that can have a positive impact on your bottom line. Something as simple as being conscious of your spending can make a big difference as well. As your business expands, don’t lose sight of where your money is going.
(Similar to: Creating a Budget: 3 Helpful Guidelines To Get You Started)
3. Take a look at your industry
Is it you or is it me? The market as a whole could be declining and it is time to reinvent yourself. Are your competitors struggling with the same issues? The fact of the matter is that your customers demand will evolve and you must adapt. Stay ahead of the Law of Diminishing returns by analyzing these points every year to work smarter not harder.
I’m passionate about helping businesses grow and am happy to discuss specific situations with you. Contact my if you’d like to learn more. Cheers to a new week!
By Stacy Bring, Director of the WHH Controller Program
Stacy is a Fresno State educated MBA who has served in accounting, controller and CFO roles for several local businesses. Her unique talents and experience teach business owners to translate numbers into useful and forward-thinking business decisions.
