Business Scaling Algorithm
Posted: Thu Jan 23, 2025 3:16 am
An entrepreneur, having accumulated a sufficient amount of resources, gained experience and knowledge, decides that it is time to expand, to zoom his business. Below we will provide a step-by-step algorithm for company growth.
Step 1: Conducting an enterprise analysis
First of all, it is necessary to analyze the current situation, determine the market share occupied, the promotion channels used, monthly changes in profit, the group of goods or services that provide the main percentage of income, etc.
There are many ways to analyze the activities of an enterprise, but it is better to use the following independently:
SWOT analysis
It is used to evaluate the gcash database company's performance according to four indicators: Strengths, Weaknesses, Opportunities, Threats. Using this technology, you can study the activities of the entire enterprise, as well as individual departments or products. A narrower subject of study allows you to obtain more accurate results.
Conducting a SWOT analysis of the enterprise
Example of a SWOT analysis of an enterprise:
Strengths Weaknesses Opportunities Threats
– Qualification of employees
- Investments
- Positive reputation
– Reduction of required volumes of raw materials using new technology
– Competitive advantages of the product
- Obsolete equipment
- Shortage of workers
– Lack of management experience among middle managers
- Weak funding
- Perishable product
– Entering new territories
– Expansion of the range
– Attracting new customer groups
- Low level of service from competitors
- Market oversaturation
- Financial crisis
- Demographic decline
ABC analysis
Allows you to evaluate a business depending on the degree of importance of its areas: A – the most important, B – of average importance, C – less serious.
The aspects of activity that can be measured in numerical terms are subject to study: product range, profit from the work of retail outlets, suppliers - by volumes of raw materials or goods, clients - by average check. To divide the object of study into groups, it is necessary to determine the ratio of values, for example, 70-20-10% for the product range .
Group A includes products that bring in 70% of the income. These products should always be in stock in sufficient quantities. Group B includes products that bring in 20% of the income. They have good potential, which can be increased, for example, by proper display in the store or a competent advertising campaign. Group C includes products whose income from sale is 10%. They should be purchased last, and can be used as beacons, determining the highest cost. Then, against their background, other products will look like a good buy.
Step 2: Business automation
An entrepreneur who has decided to scale his business cannot afford to write down current tasks in a diary and calculate his salary on a calculator. Competing firms that have automated business processes will quickly bypass him in the market, attract new clients and open representative offices in other regions.
Business automation
Automation of management and accounting
Paper reports have long been replaced by special programs. They will help control the stock balances in the warehouse, hold a sale, etc. For example, the VkusVill chain of stores offers a 50% discount on perishable goods in the evening. A special program for inventory control independently changes the cost of the required group of goods at a certain time, and management does not need to rely on the memory of sellers.
The best programs for automating management accounting are considered to be “PlanFact”, “1C: BusinessStart”, “KUB”.
Automation of financial and accounting records
If a specialist makes a mistake in the records, the company may suffer financial and reputational losses. It may take up to several days to detect it in paper documentation. Therefore, when scaling a business, it is important to use special software. The probability of errors in this case is reduced to zero, and any inaccuracies are immediately detected and corrected. Many enterprises automate accounting first of all.
The best programs for automating this area are "1C: Accounting", "Info-Accountant", "Compass", "Infin-Management". Accounting can also be outsourced to specialized companies.
Step 1: Conducting an enterprise analysis
First of all, it is necessary to analyze the current situation, determine the market share occupied, the promotion channels used, monthly changes in profit, the group of goods or services that provide the main percentage of income, etc.
There are many ways to analyze the activities of an enterprise, but it is better to use the following independently:
SWOT analysis
It is used to evaluate the gcash database company's performance according to four indicators: Strengths, Weaknesses, Opportunities, Threats. Using this technology, you can study the activities of the entire enterprise, as well as individual departments or products. A narrower subject of study allows you to obtain more accurate results.
Conducting a SWOT analysis of the enterprise
Example of a SWOT analysis of an enterprise:
Strengths Weaknesses Opportunities Threats
– Qualification of employees
- Investments
- Positive reputation
– Reduction of required volumes of raw materials using new technology
– Competitive advantages of the product
- Obsolete equipment
- Shortage of workers
– Lack of management experience among middle managers
- Weak funding
- Perishable product
– Entering new territories
– Expansion of the range
– Attracting new customer groups
- Low level of service from competitors
- Market oversaturation
- Financial crisis
- Demographic decline
ABC analysis
Allows you to evaluate a business depending on the degree of importance of its areas: A – the most important, B – of average importance, C – less serious.
The aspects of activity that can be measured in numerical terms are subject to study: product range, profit from the work of retail outlets, suppliers - by volumes of raw materials or goods, clients - by average check. To divide the object of study into groups, it is necessary to determine the ratio of values, for example, 70-20-10% for the product range .
Group A includes products that bring in 70% of the income. These products should always be in stock in sufficient quantities. Group B includes products that bring in 20% of the income. They have good potential, which can be increased, for example, by proper display in the store or a competent advertising campaign. Group C includes products whose income from sale is 10%. They should be purchased last, and can be used as beacons, determining the highest cost. Then, against their background, other products will look like a good buy.
Step 2: Business automation
An entrepreneur who has decided to scale his business cannot afford to write down current tasks in a diary and calculate his salary on a calculator. Competing firms that have automated business processes will quickly bypass him in the market, attract new clients and open representative offices in other regions.
Business automation
Automation of management and accounting
Paper reports have long been replaced by special programs. They will help control the stock balances in the warehouse, hold a sale, etc. For example, the VkusVill chain of stores offers a 50% discount on perishable goods in the evening. A special program for inventory control independently changes the cost of the required group of goods at a certain time, and management does not need to rely on the memory of sellers.
The best programs for automating management accounting are considered to be “PlanFact”, “1C: BusinessStart”, “KUB”.
Automation of financial and accounting records
If a specialist makes a mistake in the records, the company may suffer financial and reputational losses. It may take up to several days to detect it in paper documentation. Therefore, when scaling a business, it is important to use special software. The probability of errors in this case is reduced to zero, and any inaccuracies are immediately detected and corrected. Many enterprises automate accounting first of all.
The best programs for automating this area are "1C: Accounting", "Info-Accountant", "Compass", "Infin-Management". Accounting can also be outsourced to specialized companies.