There’s no better time to grow your e-commerce business than today. In the United States, online sales could account for 12% of the total retail revenues in 2022. Other international markets are also opening up.
The question is, how do you scale your business without draining all our funds? Start with these three steps:
1. Know Your Objective
What are your goals for the business? Is it to add more customers or products? Do you want to capture a new market?
Identifying your objective helps you with the following:
- Wisely spending your funds since you know which resources to focus on
- Identifying barriers or challenges that can hinder your growth
- Determining opportunities including moments of innovation
- Knowing where you are against your competitors
- Understanding the right growth to take (i.e., whether vertical or horizontal)
2. Get the Resources You Need
Scalability is easier and less likely to fail when you already have the resources you need in place. Your objectives should already tell you where to focus your energy and money.
Nevertheless, the following pointers can help you acquire the much-needed resources while still having much control over the spending:
- Consider equipment rental. Services like a warehouse forklift rental will come in handy when your e-commerce business growth now demands a fulfillment facility. Borrowing supplies and machines will save you from huge upfront costs and give you access to the latest pieces of equipment.
- Outsource some functions. For a business to grow, you need people. However, it can be challenging when you’re still building funds. Labor costs can be expensive. An alternative is to outsource some tasks. You can spend less on training or equipment and supplies.
- Look for cash grants. These programs can help boost your cash flow and working capital without paying for any interest. You can begin your search in your state or organization. Companies like Facebook and the Small Business Administration (SBA) also provide them.
3. Build Your Own Website
If you’re still selling your products in marketplaces, such as Amazon or Alibaba, now is the right time to step out of them and build your site. This way, you can enjoy the following benefits:
- Stop paying a lot of fees.
- Pass the savings to your customers.
- Get more control over the sales and shipping of your products.
- Grow your brand.
When building your e-commerce website, you have two options: do it on your own or hire a team. Each has its pros and cons.
Going DIY provides you with the best flexibility and control over every aspect of the site. You also save some money.
However, working with an e-commerce website company might be a better idea if you don’t have much knowledge about the process. You can also take advantage of other services, such as search engine optimization, social media promotions, and professional web design.
When you choose the right provider, the money you spend can be worth it. You can also recover your investment faster.
When you’re scaling your business, these three steps are not your be-all, end-all. But if you can do them correctly, you can already give yourself the best head start.