You’ll need great employees with the skills to get you to the next level, but you also need to minimize complexity and make wise choices on how to spend your time, money, and resources.
Scaling your business requires you to get strategic about resource allocation. Here are 5 questions designed to guide your thinking.
1 – What’s driving your short-term and long-term revenue growth?
The answer to this question should determine how you spend your money — aka allocate your financial capital.
Consider the next month, the next quarter, the next year, and beyond.
2 – Will you be spending more money on sales and marketing to bring in new customers?
Acquiring new customers is a well-known key to growing your business. Gaining new revenue and market share can grow your business.
However, it’s widely stated that it requires 5 times the capital and effort to acquire a new customer than to sell more to an existing customer.
It can also be cheaper to incentive your current customers to bring in new customers for you, rather than do “cold” sales.
This brings us to your next question.
3 – Will you invest in building out a loyalty program to increase customer retention?
According to Wirecard, 75% of customers said they were likely to make another purchase after receiving an incentive.
4 – Will you develop additional products to sell to existing customers?
You’ve earned the trust of your customers. Your customers may be asking, how else can your company help me solve my problems?
At the same time, focusing on your existing products is important. You will want to strike the right balance.
The next question you need to ask relates to your human capital and knowing what it takes to recruit, manage, develop, and retain the people needed to execute those growth strategies.
5 – What talent do I need to grow my business, and what do they need from me?
Spending money on growth initiatives without the people and skills required to execute those strategies won’t help you grow. It will only add complexity and overhead that steals from the bottom line.
And it’s those bottom-line profits that will be required to fund the next round of initiatives that will get you to the next level.
If you’d like more information about how outsourcing HR functions can help you concentrate on building your business, give us a ring at (888) 323-8835 or email email@example.com. We’re here to help!