Tips for Scaling a Successful Digital Business

Many owners of small businesses are scared to scale up their businesses. Fearing that they will need to invest in the company could lead to financial ruin. Although this is true in certain situations, some solutions offer low-risk options for most businesses.

Many economies are supported by small and medium-sized businesses (SMEs). They account for 99% and 99.9% of all businesses in the European Union. Many of these businesses struggle to scale up their efforts and have productivity problems. This is particularly true for companies in the early stages, which are often short on cash.

  1. Start-ups in the early stages of development
    1. Plans for early business growth
    2. Stage of proof-of-concept
  2. Established & successful start-ups
    1. Minimum viable product (MVP), established
    2. Marketing, sales and other processes
  3. Medium-sized businesses can be grown
    1. Minimum annual revenue of $10 million
    2. The solid business model that allows for medium growth
  4. Medium-sized businesses that are struggling or insolvent:
    1. They have grown to the point where they are no longer viable
    2. Staying profitable is difficult
  5. Small businesses that are locally focused
    1. Employing less than 10 people and earning less than $1 million annually Annual revenue
    2. Demand is strongly linked to growth
  6. Informal micro businesses
    1. Most freelancers and home-based business owners
    2. Credit is often needed to expand a business.
  7. Productize your services

Selling digital products/services to small businesses is a clear advantage over selling physical goods. Scaling up your output is much easier than investing in large capital. There is nothing to produce.

Nevertheless, some companies have already produced their services. Some of these companies don’t even know it. Let’s take the example of book publishing. This industry has seen many professionals leave the publishing industry to start their businesses. They have started their own businesses. These three are the most common in publishing.

  1. Book Designers: They specialize in interior design, covers, and typography. Some might also be able create book trailers and social media graphics.
  2. Editors: They will ensure that your book flows smoothly, hooks the readers, and is free from errors.
  3. Marketers: They will attempt to get your book into the hands of anyone who may be interested.
  4. Change to a recurring services model

At times when they feel like they aren’t able to grow, small and medium-sized businesses might run into a problem. Many times, growth is affected by moderate cash flows. When you sell one-time services, it is difficult to plan ahead. While one month may be a great time for revenue, the next might not.

Switching to a recurring service model or offering it alongside one-time services is one way to make the future more predictable.

Analyze your current prices

Many small-business owners fear increasing their prices. However, it is not cheap to invest in new processes, tools and other quality-of-life improvements. These costs will eventually have to be recouped.

It’s hard to decide whether to raise prices. However, business owners can maintain the same price for existing customers. The grandfathered customers will continue to be covered, but new customers will be able to take advantage of the new pricing structure.

Behavior-based onboarding reduces churn

A happy client can be a loyal customer for life. It’s not easy to do, but it is important for businesses to invest in processes that will ensure a long-term commitment.

Most companies have trouble with retention after signing up for a free trial. This is how their lead journey might look:

  • Lead land on a landing page that is marketing-oriented.
  • They sign up for a trial after being convinced by the page or through marketing emails.
  • They should experience a trial period that leads to an “aha” moment and then they will be able to convert into customers.

During the trial period, friction moments are common. It doesn’t always lead to the “aha” moment. Here are some reasons why this is so.

  • The trial period is too brief and cannot be extended.
  • To test a product or service, leads must set up too many things.

This issue can be solved by creating an onboarding experience that combines self-service and human support. If the lead logs into a client portal they will see links to the help centre, tutorial videos and contact information (via chat or email).

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