Small business growth: 6 ways to scale your business

Jan 23, 2025 | 5 min read

Ways to scale your business without putting yourself at risk

When your business is thriving, it’s natural to consider expanding by adding a new location or moving into a larger space. After all, the goal for most owners is to grow their business. However, scaling too fast or too soon can have negative repercussions. You might stretch your resources too thin or overburden yourself and your staff.

If you’re considering an expansion, it’s crucial to do so safely and efficiently to protect your business and assets. Here are six strategies to help you better prepare to grow and scale your business:

1. Research before you scale

Before you commit to an expansion, you’ll need to do some research first. Take a hard look at your business and the reasons for your success. Is your sales growth due to a busy season, trend or high-performing employee? Or have you been experiencing a steady increase in foot traffic due to persistent marketing, positive word of mouth and a competitive edge? Expanding when your growth is based on things within your control is less risky.

You’ll also want to conduct market research. Ask your customers why they patronize your business and if there are any products or services that they would like you to start offering. In addition, research your competitors. Identify what they are doing that you’re not and decide if you need to expand your products or services. You should also compare your products and services to see if you have a competitive edge you could promote.

2. Make a business scaling plan

With growth as the goal, you’ll want to ensure your resources grow alongside your output. Start by performing a sales growth forecast based on the number of new customers and orders you've generated in the past year. Determine a realistic amount of revenue you can anticipate based on your growth for the upcoming year. You’ll need to boost profits enough to support the expansion.

Next, create an expense forecast outlining the costs associated with your growth, such as hiring new employees, expanding product offerings, increasing square footage or investing in advertising. Your profit and loss statement will help you estimate your expenses and anticipate your potential profits. Seek to grow in the most profitable areas of your business to drive bottom-line revenue.

Also, create a marketing plan to promote your expansion. You’ll want to get the word out before you make any changes and gather input from both existing and potential customers that could help you with your launch.

3. Get financing to grow

Small business scaling requires an influx of money to cover new costs, such as hiring extra staff, installing new equipment and adding to your facilities. You’ll want to secure funding before you act on your growth plan, so you aren’t scrambling for funds to support your business scaling strategies. Take advantage of your bank's small business financial services if you don't have cash reserves to cover the extra expenditures; a business loan or line of credit can be important to realizing your growth strategy.

You may also be able to take advantage of fundraising opportunities. If you’re launching a product that might generate a lot of interest and hype, a crowdfunding platform could be a great place to bring your idea to the public and create pre-sales. You could also seek out investors and partners in your industry who may help you grow by offering capital or taking an active role in the expansion. Keep in mind that while these partnerships can strengthen your business, they will also create barriers, such as having less creative control or decision-making power.

4. Delegate and automate

Working towards growth usually leads to longer days in the office. Delegate what you can to focus on what matters most. Small business owners often hold onto too many tasks. Consider delegating anything that doesn’t require your personal attention to someone on your team. Not only will you free up time, but you'll also provide an employee with an opportunity to learn new skills.

Another way to reduce your load is to leverage technology and automate tasks that streamline operations. For example, you could add a chatbot to your website to answer routine customer questions or track orders. Or you can set up automatic payments or other cash management solutions with your bank to reduce the time it takes to pay bills. The minutes you save here and there will add up.

5. Find staff that make sense as you grow and scale your business

If you need to hire new employees for your expansion, look for people with a broad set of talents you can leverage. For example, if you're hiring a manager for your new location, look for someone who also has other valuable skills, such as experience with social media marketing.

Or, if bringing on an additional staff member doesn’t make sense, use the services of an independent contractor. This can be a good solution for a short-term or seasonal need, such as promoting your grand opening or providing extra help during a busy cycle.

6. Use feedback loops for successful growth

The growth period is volatile and having a pulse on your expansion’s progress is key to maintaining growth. Feedback loops can help you course correct and turn things around quickly. For example, use analytics to measure the effectiveness of your marketing campaigns. Look at metrics like traffic and conversions. Check your new employees' sales numbers to ensure you made the right hiring choice or offered adequate training. Measuring results can provide you with the information needed to make quick pivots.

The growth phase of a business is an exciting and rewarding time. Being able to scale your business signals that your idea and its execution are needed in the marketplace. By taking an intelligent approach to growth, you'll help your business continue to thrive for years to come.

Connect with a banker

Let us partner with you. Reach out to a business banker for assistance.

Explore our banking solutions

Find the right banking products for your business needs.

Related articles

How to expand your business: Does a new location make sense?

5 tips to help you land a small business loan

Do you need a business equipment loan?

Start of disclosure content

Disclosures

Eligibility requirements, other conditions and fees may apply. Services mentioned may be subject to credit approval. Deposit products offered by U.S. Bank National Association. Member FDIC.

Credit products offered by U.S. Bank National Association and are subject to normal credit approval and program guidelines. Some restrictions and fees may apply.

This document is prepared by U.S. Bank as a service for its customers. The information discussed is general in nature and may not apply to your specific situation.