Entrepreneurs need to think long-term if they want to succeed 

Many a business plan lays out what happens up until the launch, or the first milestone. Then they start to fizzle out. Growth turns out to be a pleasant surprise, followed by a chaotic scramble for space, staff, and cash.  

 Build scaling into the plan from day one, and that scramble turns into steps you’ve already plotted out thoroughly beforehand. Here’s a framework to fold into your next update, no matter your size or sector. 

Longer forecasting 

 Most projections stop at a “realistic” uptick – 10% here, maybe 15% there. Stretch further than your initial expectations. Make sure that you model at least two bigger scenarios: 

• Rapid-growth: cases where orders double after one large contract. 

• Ongoing momentum: a steady 25% bump every quarter for two years.
   

Run cash-flow, staffing, and inventory needs under a range of growth models. Seeing the numbers early forces you to identify funding gaps, training needs, and supplier limits before they blindside you. 

Design scalable processes  

If a task works only because one person remembers how to do it, you’re likely going to have a talent bottleneck. Map each core process – quotes, fulfilment, customer support – so a stranger could follow it with minimal hand-holding.   

Then ask: what happens when volume triples? Can steps be automated? Where can approvals be pushed to team leads instead of directors? Small tweaks now save massive rewrites later. 

Modular infrastructure 

 Whether you’re trying to protect cloud servers or take care of warehouse racking, plan in blocks that can bolt on quickly. In tech, that means choosing platforms that let you add users or compute power without fresh installs. In logistics, it’s shelving that can be reconfigured in a day, not a week. 

This modular mindset extends to security and asset control. As you start expanding to new regions like Spain, a smart asset-tracking platform from somewhere like Traka España – digital key cabinets, RFID tags, real-time dashboards – keeps visibility intact without rewriting the rulebook each time a new location opens. 

Create a talent pipeline  

Scaling stalls when hiring starts to lag. Keep an evergreen ‘bench’ of potential hires: freelancers you trust, past interviewees who nearly made it, university contacts. Touch base twice a year so warm leads stay warm. Meanwhile, document onboarding, so new starters are productive inside a week, not a month. 

Stress-test your pipeline 

Suppliers will likely love working with your business, until your order size doubles overnight with little to no warning. Sit down now and ask what lead times look like at 2x, 3x, or even 5x your current volume. Lock in framework agreements or alternate sources where the answers sound shaky. 

Scaling isn’t a lucky after-effect; it’s a specific approach to designing your business. Project bold scenarios, modularise processes and infrastructure, keep talent ready, give managers controlled autonomy, protect visibility with good asset tracking, and push suppliers to be honest about their own limits. Do that in the initial plan, and growth will feel less like a cliff-edge and more like the next step up a ladder you built in advance. 

Emma Cruickshank

Emma is a literature, TV, and film enthusiast. When she’s not writing, she can normally be found out in the Sussex countryside, walking her dog Herbie, or in a restaurant drinking an overpriced cocktail and dreaming up ideas for her next literary endeavour.

The post Ready to grow? Build scaling into your business plan  appeared first on Silver Magazine.

The rise of the internet in recent decades has pushed businesses to make huge changes. In a study on digital transformation, experts believe that companies should integrate digital transformation practices into their strategies. Not only to survive, but also thrive in today’s competitive environments.

By doing so, they can respond to new opportunities and work to become resilient against risks. Not only that, gain a competitive advantage over their peers in the industry. Additionally, digitalisation can lead to improvements in productivity, and reduce costs by automating some business processes. Ultimately, businesses can become more successful by exploring what new technologies have to offer.

So what do we mean by digitalisation?

Let’s look at your customer service first

As more people are switching to online shopping and services, you must also improve your online customer experience to promote repeat purchases and customer loyalty. The short of it is that without your customers, your business wouldn’t be able to succeed.

According to one study on the state of digital transformation, respondents claimed that boosting customer experience and engagement remains the top goal of businesses.

To achieve this, you can use digital tools, like Google Analytics and Sprout Social, that can provide consumers insights by gathering and analysing customer behaviour data. Using these technologies, you can learn more about what your consumers want. And how they want it delivered to them. Although this may require you to invest in technological software, it’s worth it because it enables you to make data-driven decisions to elevate the customer experience. Plus, as time goes by, these tools collect and process more information to provide you with timely insights.

Offer digital payment options

Because online shopping is currently in-demand, digital payment methods are necessary for an effortless online transaction. And even if people are not buying online, more consumers now prefer cashless transactions, with over 70% of consumers in the UK saying they prefer cashless payment methods. So, if you want to keep satisfied customers, you should invest in digital payment services. This doesn’t only apply to large-sized companies as merchant services for small businesses also need to adopt digitised payment systems if they want to remain competitive in the market.

Today, different payment processes are available apart from traditional countertop card machines. One of them is the Pay By Link method, where customers can pay online through a secure link that is individually sent by email by the vendor. This can help you reduce time chasing unpaid transactions, and the unique links let you keep track of each payment request for documentation.

Other processes are also popular today, such as online bank transfers and digital wallets. Digital payment options can put you at an advantage over your competitors long-term because they’re safer and more convenient for you and your customers.

Adopt a digital-first leadership mindset

Lastly, it’s also crucial to adopt the right digital-first leadership mindset. Even if you have the best tools necessary to digitise your business, you won’t be able to successfully utilise them if you’re not prioritising their use. Nor will it be easy if you’re notr familiar with them yourself. Knowing and understanding how these technologies can help your business will guide you in assessing which to use or discard. This will eventually enable you to utilise these tools to anticipate opportunities and threats and increase business productivity to improve performance.

Moreover, being a digital-first business may attract more investment opportunities for new businesses since more partners and organisations are looking to fund businesses that are primed to thrive in today’s digital landscape. Adopting a digital-first mindset means being open to new ideas and exploring growth opportunities, ready for any challenge.

Bunty Whitstable

The post Do you run a business? Are you ready for the digital future? appeared first on Silver Magazine.

Planning on the back of a napkin is a time-honoured way to get started with your idea – and empires have been kickstarted this way. But ultimately, some kind of funding is a good way to get things off the ground, and for that you’re going to need a bit more planning. If you’re thinking about raising some money for your new enterprise, money guru Clive Hyman has some tips.

1: Decide on equity or debt – or a combination
Equity has massive implications for dilution – so don’t ignore the debt option. This doesn’t affect equity and can be a quicker and easier source of funds. There are now plenty of debt providers lending money, depending on the age of your business – but don’t expect money from the traditional banks. For example, if your business is already two years old, try Funding Circle.

A combination of debt and equity is often the ideal solution; this enables a cheaper cost of capital for the company, as it requires interest rather than a dividend.

30% equity and 70% debt is good ratio and can make the company easier to manage. This is generally the accepted ratio which tax authorities and capital providers like to see. This usually makes the company more likely to attract further equity investment, as the potential shareholders can see that the management has understood that debt needs to be part of the company’s financing strategy.

2: Test your financial model – it must be robust
Put your figures into a spreadsheet and test them. Try out different scenarios – see what happens to the numbers. This demonstrates that you are prepared for different outcomes. You must also show the different types of returns from the different sources of capital, cashflow for at least the next 12-18 months, and any dependencies. This will show that you are being sensible and serious.

3: Be realistic about your valuation
To get a sensible, realistic idea of the value of your company, compare the most recent valuations for transactions in the space. Don’t pick an outlier valuation, instead choose something in the middle. This will show potential investors that you are being reasonable and make them more likely to invest.

4: Decide on the appropriate people to approach
For example, Sola Bank and Baldetton Capital work in the £100million arena. In the £1–5million area, try EIS/SEIS funds and VCT funds. (If you don’t know what this means, this is where an introducer like me can be helpful in providing introductions and knowledge, so drop me a line for a bit of guidance).

For smaller amounts contact Angel Investors. A Google search will deliver a list of Angel networks, or some research on LinkedIn. Then dig into each one to see if you meet their criteria. But do also ask your network for recommendations and introductions, and approach your family and friends for help if they’re a good fit. These small amounts add up – and can help give you seed that will attract a bigger fish later.

Fundraising is an art, not a science; you can be lucky or unlucky

5: Make contact and ensure you follow up
Target your funders carefully, do some background research on them so that you know you are contacting the right people, check that your business is in their sphere of interest and at the right stage for them, and that the amount of money you are looking for is appropriate for them.

Fundraising is an art, not a science; you can be lucky or unlucky. So, make sure you contact enough funders to manage your own luck and tap into as many people as possible.

Once you have drawn up your list of people to contact – work through it systematically and methodically – and always follow up!

6: Prepare the right information for the right stage in the process
It is essential to prepare a one-page summary of the opportunity. Too much information is not helpful. This document should include a summary of the opportunity; what investment is being sought and what kind of business is going to be generated as a result, including a potential return if it’s possible to identify that. It must be an accurate summary of the business, be clear, concise and easy to read and understand.

Once a potential funder is interested they will then want more information. Approach this as a sales document/pitch. It must be able to work on its own – and not require you to be standing there explaining it.

It needs to answer the following:
• What is the business?
• Who are the management team?
• What is the market size?
• What is the opportunity within the market?
• How much money is needed?
• What is the money going to be spent on?
• What kind of business will be created post investment?

7. Take your team with you
Yes, the people at the top are important, but investors like to see the team as it is team they will be backing – not an individual. Don’t go on your own to a meeting with a funder – this can use up valuable time when a team approach would be more successful and efficient.

With the team at the first meeting, the funder’s questions can be answered. If they aren’t there, then you’re down to an inefficient and long-winded process of following up – and a chance for the funder to go ‘off the boil’.

By following the steps above, you are more likely to be successful at raising the money you need for your business. Preparation, putting in the necessary time, and perseverance are all key aspects of the funding raising process.

ABOUT THE AUTHOR
Clive Hyman FCA is founder of Hyman Capital Services offering expertise in due diligence and managing change in business including raising equity and debt capital, mergers and acquisitions, interim management, board management and governance, deal structuring, and company turnaround.
www.hymancapital.com
LinkedIn: www.linkedin.com/in/clivehyman

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