Matthew Rusk Student Entrepreneur in Residence

I think everyone is tired of Brexit, no matter their individual views on the outcome they want for the process. With the impact of the second delay effecting small-businesses I thought I would be interesting to explore specifically what this impact is and how start-ups might be able to mitigate it.

After talking with start-up owners it is clear that Brexit impact is very much dependant on the type of business model that a start-up runs. For example, those business models that require the import of resources or the export of products to EU countries and beyond have some of the most direct concerns about any change in cross border trade-deals.

This can be contrasted with eCommence websites that are focused on selling British made products or re-selling services in the UK. Changes to cross border relationships is less impactful, so concerns quickly turn to the impact of Brexit on consumer confidence and spending power. This approach certainly falls into broader business fears of an economic downturn post-Brexit that would cause lower sales for start-ups.

Unfortunately, from my conversations with start-ups there was little optimism about Brexit – even from pro-Brexit start-up owners. The main reason for this is no-one I spoke too could define with confidence at this stage how Brexit would turn out, so inevitably they worried that it would be a type of Brexit that they didn’t want. One that would negatively impact their business.

As we turned to ideas about how to mitigate against the start-ups most feared impacts of Brexit talks became more positive. For example, all the start-ups I spoke to acknowledge that surviving economic downturns are part of running a successful business over the medium to long-term. So investing time in planning how would we run our business if we had a 30% decrease in sales during 2020 is worth doing regardless of Brexit. I remember reading James Caan’s book, where the former Dragon’s Den investor wrote about how he had to “button down the hatches” to survive one economic downturn that effectively stopped major companies hiring for several months…a problem if you run a recruitment start-up! Therefore, having a strategy in place for economic downturns is no bad thing regardless of Brexit.

Exploring how to deal with changes in cross-broader relations fell into two categories (1) understanding what the changes meant so that the business was compliant, could rebuild their supply chains with a clear understanding of timings and also continue to build positive relationships with suppliers or buyers in the EU was key.

Category (2) was the specific short term impact of Brexit that might disrupt supply chains in such a way that would negatively impact the business, frustrating customers and loosing short-term business. As we have heard in the new stockpiling is a common response to this, though a costly expense for a start-up to undertake.

While it goes beyond the scope of this article to provide specific advice for start-ups planning for Brexit one thing that became clear from my conversations with start-ups was that having open discussions about Brexit and its impact on your business is a healthy thing to do. Several start-up owners actually said they felt better having spoke about the impact of Brexit on their business – simply having a conversation about it seemed to have helped them to air their fears.

So do reach out to other businesses through your network and speak to business owners like yourself to explore how you industry is planning for Brexit. Even if the outcome of these talks is for you to put something in place to plan for an economic downturn that is no bad thing to have planned out.

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Piano Lessons Leeds

A small business update is that the mgrmusic.com team have been delighted to launch the Piano Lessons Leeds music hub earlier in April. Working closely with local piano teacher George MacDonald, who is a professional piano tutor with many years teaching experience, the team is looking to built one of the leading piano schools in Leeds over the next few years.

George is well placed to be able to lead this development having graduated with a BA Hons (Music) in Jazz Piano at Leeds College of Music. This local knowledge of music education within Leeds is combined with a wider network of musicians that George has performed with through the various bands. Enabling him to connect students to local musical opportunities as they develop their piano playing to a level that would enable them to perform. I know that the team are delighted to have him onboard and I wish him a warm welcome, as well as every success to the new Piano Lessons Leeds school.

Posted under MGR Music

Scaling a business is no doubt an exciting time, but it can also be daunting. You want to ensure that the growth of your business is sustainable and profitable. One way to approach this challenge is by considering whether you should scale quickly or gradually. Over the years I have tried both, so let’s explore the pros and cons of both strategies so you can make an informed decision for your business.

First of all, scaling quickly could result in big wins for your start-up. You may find yourself with more resources faster than if you had grown at a slower pace; this means access to a larger customer base, new opportunities and higher revenues sooner rather than later. Plus, when everyone involved has the same goal – rapid expansion – there’s often greater motivation across teams to take action quickly and efficiently.

On the other hand, moving too fast may lead to unforeseen problems. For example, it can put strain on yourself or your colleagues as they struggle to keep up with job responsibilities while managing increased workloads due to the quick growth rate. Moreover, expanding too rapidly can deplete financial resources before there are enough sales coming in from newly acquired customers to cover them; this puts businesses at risk of running out of cash flow just as their profit potential starts taking off!

Overall, understanding the pros and cons of scaling quickly versus growing slowly will help guide you towards making wise decisions as you expand your business operations. Keep reading to learn more about how each strategy affects profitability and sustainability!

Preparation Considerations

When deciding whether to scale your business quickly or gradually, there are several considerations you should make.

Firstly, it’s important to consider the resources available to you in terms of financial capital and personnel. If both are limited then a gradual approach may be more prudent as this allows time for additional investment and recruitment opportunities. On the other hand, if resources aren’t an issue then a quicker pace might be feasible.

Secondly, think about what type of growth is necessary for success – do you need to increase sales rapidly or could slow but steady growth serve your needs?

Finally, weigh up the risks associated with each option – scaling too slowly can lead to missed opportunities while growing too quickly can cause disruption within the organisation. All things considered, preparation plays an integral role in setting yourself up for future success no matter which path you choose. As such, it’s essential that you dedicate enough attention and energy towards planning before taking action. With careful consideration and forethought now comes greater freedom later on.

Growing Pains

Scaling a business quickly or gradually can bring its own set of challenges. Growing too fast can cause an imbalance in the resources needed to sustain it, while growing too slowly could lead to becoming irrelevant.

• Too much strain on cash flow
• Increased customer service demands
• Poor communications and delays in processes
• Lack of clear vision or strategy for rapid growth
• Unforeseen operational costs

The stress that comes from expanding a business rapidly might be overwhelming, both financially and emotionally. There is no one-size-fits-all approach when it comes to scaling. Every company needs to determine if their capacity for growth aligns with available resources, and how much risk they are willing to take. It’s important not just to consider the potential rewards but also the possible downsides. With careful consideration, the right balance between quick and gradual expansion should become apparent.

Managing Complexity

As the business expands, so do its complexities. When looking to grow quickly or gradually, it’s important to consider how this growth will affect the organisation as a whole. Fortunately, there are both pros and cons associated with either approach that can help businesses make an informed decision on what makes sense for their particular circumstances.

Scaling quickly has several advantages. It allows companies to take advantage of market opportunities before their competition does. This can be especially beneficial in rapidly changing industries where staying ahead of trends is essential for success. Additionally, growing at a rapid pace often brings increased investment funding which can lead to greater resources and more personnel needed to execute strategies effectively.

On the other hand, scaling too fast may put strain on existing infrastructure and processes. Without sufficient time to adjust systems accordingly, organisations risk making costly errors due to mismanagement or lack of planning. Furthermore, scaling too quickly might also create instability within the team by disrupting established procedures and protocols that have been carefully developed over time.

Overall, while both methods offer unique benefits and drawbacks, it’s ultimately up to each individual business owner to determine which option best suits their needs. By weighing potential risks against long-term rewards, leaders can develop a strategy that helps them reach their desired goals without sacrificing stability along the way. Having done all this due diligence then sets them up nicely for exploring the next step: understanding the benefits of rapid expansion into new markets

Benefits Of Rapid Expansion

Scaling your business quickly has some major advantages. The first is that it allows you to capitalise on opportunities in the marketplace before they pass. Rapid expansion means you can take advantage of temporary competitive advantages and market shifts more easily than those who grow their businesses gradually. Another benefit is that scaling rapidly gives you a better chance at gaining name recognition, brand loyalty, and customer base faster than if you move slowly with growth.

Additionally, having access to capital makes it easier to scale up operations when needed. This could include hiring new staff or investing in technology or other resources that will improve productivity and efficiency. When done correctly, rapid growth provides an opportunity for increased profits quickly which can lead to higher returns over time.

Lastly, expanding quickly may also help create economies of scale as production costs decrease due to larger volumes being produced and sold. This could result in even greater profitability down the road if the company is able to maintain its momentum after initially scaling up operations quickly.

Challenges Of Rapid Expansion

The primary challenge of rapid expansion is the intense pressure it places on all involved in the business. It often requires long hours and constant hustle, which can lead to burnout if not managed carefully. I have experienced this myself at MusicTeacher.com,  where we kept having to re-build the invoicing system to keep up with the numbers of lessons being logged onto the system – a never ending headache that drew resources away from other areas of operation (like teacher acquisition or enquiry generation). Business owners also need to be aware that they may lack the necessary experience or resources needed to deal with complex issues related to scaling quickly. This could cause delays in production, delivery, customer service, and other areas within the business.

Rapid growth can also bring financial stress when financing isn’t available or secure enough for an ambitious expansion plan. If a company overextends itself financially because of rapid growth, their ability to remain competitive and profitable will suffer significantly. They’ll also face the risk of having debt obligations that are difficult to meet while still providing the quality products and services customers expect.

Unforeseen problems such as legal disputes or market instability can further complicate matters and make it more challenging for businesses trying to rapidly expand. Without proper planning, companies may find themselves unprepared for any potential pitfalls along their path towards success.

Benefits Of Gradual Expansion

The benefits of gradual expansion cannot be overlooked. Taking the time to plan, develop and execute an effective growth strategy can provide numerous advantages in terms of cash flow, resources and customer relations. I have seen this most effectively used for small local operations, like the Yoga Market Harborough start-up, which simply started with one persons interest in teaching yoga and slowly evolved overtime to a thriving yoga school. There was no race to take over the world, but instead steady sensible steps towards building a successful and profitable business.

To begin with, gradually scaling a business allows for more control over expenditures and costs associated with rapid expansion. It gives entrepreneurs enough time to experiment with different strategies before committing larger sums of money or capital investments into their growth initiatives. This is especially true for small businesses that often have limited resources at their disposal. Furthermore, it also helps them avoid any costly mistakes due to inadequate planning or lack of preparation when expanding too quickly.

Another advantage of taking things slow is that it provides ample opportunity for businesses to nurture relationships with customers by providing personalised service and support during the process. This can help build trust among consumers who are looking to purchase from companies they believe will meet their needs effectively. Additionally, this approach also allows organisations to gain valuable insights about market trends which could prove beneficial in the long run as well as enabling them to adjust their strategies accordingly.

Gradual expansion offers businesses many opportunities and advantages but there are still challenges that must be taken into consideration while doing so. The next section outlines these potential difficulties that come along with pursuing a slower path towards success.

Challenges Of Gradual Expansion

Gradual expansion often presents unique challenges for business owners. Many times, businesses that grow too quickly can experience cash flow problems, resulting in missed deadlines and unhappy customers. Though the idea of scaling up your operations is exciting, it’s important to consider how much time you have available for growth – especially if you’re running a bootstrapped business or are limited by staff resources.

Here are four points to keep in mind when considering gradual expansion:

• Slower growth means more control over finances: With slower growth comes increased visibility into financials and expenses, allowing entrepreneurs to make decisions with greater confidence. This helps ensure that their investments don’t go to waste due to unforeseen costs that come with rapid expansion.
• Greater stability during challenging market conditions: Gradually expanding allows businesses to adjust their strategies as needed in order to remain competitive. In turbulent markets where larger competitors may be struggling, smaller companies who have taken their time growing will likely find themselves better positioned than those who grew rapidly and found themselves unprepared for sudden changes in consumer demand.
• More flexibility with pricing models: Growing gradually gives organisations the opportunity to experiment with different pricing models before committing large amounts of money and resources towards one particular model. By taking the time to research what works best for them, they can then invest strategically without risking significant losses due to bad choices.
• The ability to maintain quality standards: When a company grows too fast, there is an inherent risk of sacrificing quality standards in favour of quantity or speed of production. But when a company takes its time developing products and services over time, they can focus on maintaining consistently high levels of customer satisfaction throughout each phase of development.

It’s clear that businesses should take care not rush into any decision regarding scaling up operations without first carefully evaluating all the potential risks involved – both short term and long term ones alike. Selecting the appropriate path for your business requires careful consideration so you can avoid costly mistakes down the line while still realising your ambitious goals for growth over time.

Selecting The Appropriate Path For Your Business

The decision of whether to scale your business quickly or gradually is a complex one. While there are advantages and disadvantages to both approaches, the best path for your company depends on numerous factors such as how much capital you have available, what type of market you’re in, and how adept you are at taking risks.

If you choose to go the quick route, it can be very rewarding if done properly. You may experience fast growth within a short period of time that provides access to more resources and markets than ever before. On the other hand, this approach requires significant up-front investments that could put strain on limited funds. Additionally, rapid expansion often carries with it greater risk due to increased competition and unsteady customer demand.

In contrast, gradual scaling allows businesses to grow slowly while still being successful over time. It gives companies more control since they’re able to limit their spending until they’ve achieved certain goals and milestones. This method also helps build confidence among stakeholders by providing consistent results that demonstrate long-term viability. However, slow growth means less visibility in the marketplace which makes it difficult for new customers to find them.

Having identified these considerations the next step is understanding the strategies needed for implementing an effective scalable plan.

Strategies For Implementing A Scalable Plan

Scaling a business quickly or gradually is dependent on the goals, resources and risks that businesses have to manage. There are strategies for implementing a scalable plan depending on which approach you choose.

Here are four strategies:

1. Develop a timeline: A timeline will help businesses measure progress against their goals while also providing an opportunity to adjust course if needed.
2. Test before launching: Testing products or services before launching them can save time and money in the long run by avoiding costly mistakes due to poor planning or lack of proper research.
3. Monitor performance metrics: Monitoring key performance indicators allows companies to identify any potential issues early and take corrective action as needed. This helps ensure success in scaling up operations without sacrificing quality or customer satisfaction levels.
4. Invest in technology: Many times, investing in technology is necessary to scale operations efficiently and securely at lower costs than manual processes would incur. Businesses should look into all available options when looking into how best to invest in technology for growth purposes.

By following these steps, businesses can create effective plans for scaling their operations whether they decide to go fast or slow with the process. Knowing where one stands today helps determine the direction of tomorrow’s future growth opportunities and successes. With this knowledge, entrepreneurs can make informed decisions about how best to move forward with their scalable plan – enabling them greater freedom and control over their destiny along the way!

Conclusion

The decision of how much and how quickly to grow a business is one that should be made with great care. Weighing the pros and cons of scaling quickly vs. gradually can help you decide on the best growth rate for your company. It’s important to prepare well, consider any growing pains, anticipate hiring challenges, and plan for managing complexity as your business grows. Rapid expansion has its benefits but also comes with resistance to change; it’s necessary to come up with strategies for implementing a scalable plan in order to successfully navigate this process. In determining an ideal growth rate, analysing successful results from previous efforts can provide helpful insight into what works best for your particular organisation. To sum up, careful analysis is necessary when deciding between rapid or more gradual growth–it’s key to understanding which approach will work better for both short-term and long-term success.

Posted under Business Advice