In the dynamic world of business, growth isn’t just a goal; it’s a necessity.
The key to business success often lies in the ability to adapt and grow. However, rapid or unmanaged growth can lead to several challenges, including unsustainable practices, processes that no longer suit the size or scale of the organisation, and a loss of a shared vision and goals. Small businesses, in particular, face a unique set of challenges and opportunities when it comes to scaling up. Matthew Armour, the founder of Procure Spot, shared valuable insights during a talk at the Penrith Chamber of Commerce in August. His presentation centred around the importance of a structured approach to scaling small businesses.
Why scale?
Small businesses, like Procure Spot in its early days, often start with a great idea and a lot of passion. Growing (or scaling up) a business offers numerous benefits, however, it’s essential for small businesses to approach this process strategically and responsibly. Successful scaling involves careful planning, effective management, and a commitment to maintaining the company’s core values and customer focus.
Benefits of scaling a business
Scaling up allows a small business to achieve sustainable growth over the long term. This growth can lead to increased revenues and profitability, providing financial stability and security. Additionally, it can help a small business compete more effectively, gain market share, and expand its customer base. Scaling up can enable a business to enter new markets, whether regionally, nationally, or internationally. This diversifies the customer base and reduces reliance on a single market, making the business more resilient to economic changes. It can also mean expanding the business into new product lines, services, or industries which can help diversify revenue streams and reduce the risk associated with relying on a single offering.
For socially responsible businesses, scaling up can amplify their positive impact on society. They can reach more customers, create more jobs, and contribute to the community on a larger scale.
Procure Spot’s growth and learning
Scaling a business challenges its owners and leaders to expand their skills and knowledge, leading to personal and professional growth. In fact, when Matthew faced the challenge of the rapid growth of his businesses in 2020, he realised the need to adopt a more structured approach, otherwise Procure Spot’s growth would be causing more negatives than positives. This is a dilemma faced by many businesses.
Matthew took a deep dive into structured approaches to scaling his businesses. A pivotal step in this journey was joining the Entrepreneurs Organization (EO) and participating in the EO Accelerator Program. This program was a game changer for Matthew and his business. It introduced him to two methodologies in particular that he has since used to structure his businesses: Scaling Up by Verne Harnish and EOS by Gino Wickman. Under Matthew’s leadership, Procure Spot used elements of these structured approaches to achieve remarkable growth, increasing fivefold from 2020 to 2023.
Structured approaches to Scaling
Scaling Up and EOS are two highly respected methodologies that provide a blueprint for sustainable growth. Scaling Up focuses on the four critical areas of business: People, Strategy, Execution, and Cash. It provides tools and practices to help businesses align these areas for success. On the other hand, EOS (Entrepreneurial Operating System) emphasises a holistic approach to business management, helping organisations clarify their vision, gain traction, and foster a healthy, accountable leadership team. Of course, EOS and Scaling Up aren’t the only two methodologies out there –The eMyth revisited by Michael E Gerber, as well as the works of Daniel Priestley such as Oversubscribed and the Entrepreneur Revolution, are highly recommended resources for business owners. Read on for Matt’s full reading list for founders.
Introducing ScaleTrac
Scaling your business is an exciting journey, but it can also be challenging to manage and track all the activities involved. To help with these challenges, Procure Spot will soon be launching a new product: ScaleTrac. This innovative solution combines the best methodologies and tools from several successful programs, providing small businesses with a comprehensive framework to navigate the complexities of scaling up. ScaleTrac is a powerful SaaS platform that is specifically designed to help small businesses to streamline their scaling efforts and achieve remarkable growth.
ScaleTrac promises to be a valuable asset for entrepreneurs and business owners looking to structure their growth journey effectively.
Proven success
Pathfinders is a not-for-profit organisation at the forefront of providing advocacy, support and services for disadvantaged communities. Pathfinders plays an important ongoing role in supporting families, individuals and children to overcome various social issues. In 2020, Pathfinders engaged Procure Spot with a focus on developing a structured approach to scaling the business.
Since then, Pathfinders has experienced extraordinary growth, going from an AUD$22 million organisation to an almost AUD$50 million company. This transformation underscores the incredible impact a structured approach can have, for any organisation.
In the ever-changing world of business, a structured approach is not just an option; it’s the pathway to success.
Keep an eye out for ScaleTrac, Procure Spot’s upcoming solution that will simplify and take the pain points out of the way businesses approach their scaling efforts.
Reading List for Founders
- Scaling Up: How a Few Companies Make It…and Why the Rest Don’t by Verne Harnish; This book provides tools and techniques for building an industry-dominating business. Harnish offers insights into the four major decision areas every company must get right: People, Strategy, Execution, and Cash.
- Traction: Get a Grip on Your Business by Gino Wickman;Â Wickman introduces the Entrepreneurial Operating System (EOS), a holistic system that, when implemented in an organization, helps leaders run better businesses, get better control, have better life balance, and gain more traction.
- Oversubscribed: How to Get People Lining Up to Do Business with You by Daniel Priestley; Priestley explains the phenomenon of being oversubscribed, where the demand is higher than the supply, and how businesses can achieve this status.
- Entrepreneur Revolution: How to Develop Your Entrepreneurial Mindset and Start a Business That Works by Daniel Priestley; This book encourages readers to enter the Entrepreneur Revolution and thrive in the new age.
- 24 Assets: Create a Digital, Scalable, Valuable and Fun Business That Will Thrive in a Fast-Changing World by Daniel Priestley;Â Priestley provides a guide to building valuable assets for your business, ensuring it’s equipped to thrive in the modern world.
- The MACHINE: How To Quickly Grow And Scale Any Established Service Business by Steve Hackney. This book explains how to build a more successful and profitable service-based business.
https://fivebooks.com/reader-list/top-books-for-leaders-scaling-a-business-daisy_reynolds/
- Changing Altitude by Dr. Dennis O’Neil and Greg Hiebert; This book breaks down what it means to be a real leader.
- Getting to Aha! by Darshan Mehta; An instructional guide that helps readers focus on the insights that matter.
- Owner Shift by Mike Malatesta; – Malatesta shares his journey and the mistakes he made on the road to success.