How Do I Turn My Small Business into a Big Business? Effective Strategies and Tips

Many small business owners dream of growing and expanding their operations. But how to grow a small business into a large business? While each industry has its own secrets and mechanisms for expanding a small business into a large one, there are several general rules to follow, regardless of the field of activity or the type of customers.

Examples of well-known corporations that grew from small companies

Here are a few examples of small companies that grew into large corporations over the course of several years:

• Meta Platforms, Inc. (Facebook) – a multinational company that owns a social network connecting over two billion users worldwide. It was founded in 2004 by Mark Zuckerberg and his classmates at Harvard as a project for students. In 2022, Meta generated revenue of $116.61 billion, and as of March 2023, the number of Meta employees exceeded 77,000.
• Netflix – a leader in the streaming video industry, offering its subscribers access to a vast library of movies and TV shows. Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD rental-by-mail service. In 2022, Netflix generated revenue of $31.6 billion, and its global subscriber count surpassed 220 million people.
• Starbucks – another excellent example of how to grow the business. Starbucks is the largest coffeehouse chain in the world, with over 30,000 cafes in 80 countries. This company was founded by three partners in 1971 in Seattle as a store selling coffee beans. In 2022, Starbucks generated revenue of $32.25 billion, and the company’s employee count exceeded 400,000.
• Roblox – a gaming company that created the namesake online platform. It was founded in 2004 by David Baszucki and Erik Cassel as a project for children. In 2020, Roblox conducted a successful IPO, valuing itself at $29.5 billion. In 2021, it had over 200 million monthly active players, and its revenue in 2022 amounted to $2.2 billion.
• Spanx – a company that manufactures and sells shapewear and clothing for women and men. Spanx was founded in 1998 by Sara Blakely as a solo project with a $5,000 investment. In 2012, it was valued at $1 billion. In 2022, Spanx’s revenue exceeded $400 million, and the company’s workforce reached 200 employees.

How to make your business grow: expert tips

Here are some pieces of advice from The Oracles (an organization that brings together successful entrepreneurs and experts from various fields) to help you grow a business and maybe someday turn it into a large transnational corporation.

Become recognizable

This first important step for growing a business. Your company cannot thrive if no one knows about it. Entrepreneur needs to utilize various channels to promote their company: videos, podcasts, blogs, articles, or paid advertising (or a combination of these). It is essential to step out of the shadows and draw attention to your brand. By creating such awareness about your business, you can significantly simplify the process of conquering the market.

It is essential to consider that scaling a business usually requires a certain time and financial investments. Virtually every company aiming for growth seeks financing to realize its plans.

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Efficiently organize internal processes

How to grow your business most effectively? Fast growth can be challenging for any company. To achieve rapid business expansion, two things need to be done:

1. Focus on your supply chain (from production to distribution). It needs to be streamlined to ensure the ability to fulfill all planned orders.

2. Invest in the right leaders and managers who will help drive business growth.

To grow a small business, many experts recommend creating a management team from employees already working within the company. This can be beneficial because employees who have gone through various levels and departments of the company have a deeper understanding of its internal workings and business processes. They have accumulated experience and knowledge that can be valuable in making managerial decisions. Furthermore, the real opportunity to hold a high-level management position motivates everyone to work diligently and contribute as much value as possible to the company.

Efficiently organize money flow

In any business, there are two essential elements. One is external (marketing and sales), and the other is internal (such as operations, delivery, and finance).

When scaling a business, the entrepreneur has to prioritize the internal interface because, without a money flow, the company lacks the ability to grow.

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Prove the viability of your business concept

Before attempting to scale, it is crucial to ensure the viability of your business concept. Otherwise, bankruptcy awaits the entrepreneur. There are two ways to grow your business through scaling a winning concept:

1. To achieve successful business development, attracting professionals capable of handling significant workloads is necessary. It can be challenging for a single entrepreneur to manage all tasks independently. By having suitable specialists, the business owner can delegate tasks without fearing that the business will cease operations without their active involvement.

2. Actively leverage automated systems. This helps reduce time and resources. For example, online directories allow customers to find answers to their queries independently, reducing the number of support requests. Additionally, it is recommended to invest in a personalized user experience. The simpler the product or service is to use, the faster decisions can be made and the faster the company will grow.

Reduce overhead expenses

There are several ways to obtain the financial resources necessary for company growth. One of them is to reduce unnecessary overhead expenses. To find reserves for scaling your business, it is recommended to:

• improve inventory turnover
• lower production costs
• analyze the marketing budget and reduce lead acquisition expenses
• utilize virtual office spaces and resources to avoid significant expenditure on physical office rentals.

Practice corporate social responsibility

Ways to expand your business include implementing corporate social responsibility in your company. Many customers prefer to engage with a company that aligns with their own values. Corporate social responsibility means that an entrepreneur acknowledges the impact of their business on all aspects of society. Providing the community with visibility into the company’s actions and its positive influence on the city, region, and beyond can help the company gain more significant support from possible customers and partners.

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Seek strategic partners

Entering into a strategic partnership with another business can provide an entrepreneur with the opportunity to reach a broader network of customers or align growth with strategic objectives in the business plan. One example of a successful collaboration is Starbucks’ strategic partnerships with other retail stores such as Barnes & Noble or Target. This allows Starbucks to expand its presence and reach new customer segments.

It is important to note that the recommended strategies can enhance the quality of business management. However, owners should constantly learn and adapt flexibly to the ever-changing market challenges.

According to data from the U.S. Bureau of Labor Statistics for 2022, approximately 20% of new businesses fail within the first two years after opening, 49% within the first five years, and 65% within the first ten years. Only 25% of new businesses reach the age of 15 years or more.

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