Your POD Business Brings Good Money but Its Growth Has Stopped? Here are Some Useful Tips on Business Scaling
Today, the print on demand business world is fiercely competitive. Companies’ path through adapting their strategies has become more sophisticated, and to survive, they have to completely change all approaches. Of course, this is good if your product is sold like McDonald's burgers and has its unique audience. But what if you expand your strategy to other markets without losing the vast majority of your investment?
Scaling is the gateway that distinguishes a startup and small business from a profitable company. For example, Fortune 500 brands were born from an idea developed and scaled at the right time by an enthusiastic entrepreneur. Nights of continuous work, absolute focus on the business, and a talented team have played a significant role in developing and extending the print on demand business horizons in today's digital landscape.
Let's look at how to scale small online print on demand business and adapt an online store for different markets.
Table of contents
What does scaling a business mean?
In light of recent developments, the word "scalability" has become very popular because every entrepreneur tries to establish a flexible business and increase a passive income. Investors will also tell you that they prefer to invest in ready-to-scale startups. In simple terms, scaling a business means you can increase your profit with minimal extra costs.
Internet business models are scaling almost endlessly because digital technology is intangible. An online store on Shopify is a classic example: it assumes the initial costs of creating, and in a short time, its appearance on the market notes a steady inflow of minimum profit. The concept of rapidly increasing margins in a short period consists of new customers while using extra resources. In addition, eCommerce assumes low operating overhead, lack of warehouse space, and developed infrastructure, which is also a distinctive feature of scaling business companies.
On the contrary, the small business growth strategy always comes down to the entrepreneur's financial capabilities: by increasing production costs, a profit grows. You can sell 500 more hoodies than before, but their production requires the expenses on designs creating; respectively, the business will grow by increasing assortment.
The signals for scaling business up
There is no magic potion to help you determine when to expand. Still, the reasons why a company is a "sitting duck" generally fall into four categories:
Lack of opportunity
The business scaling strategy solution to implement scaling isn't always appropriate for enterprises that don't have the goal of exponentially growing and expanding. A slow but steady increase can match the nature of the business and the owner’s temperament.
Very often, a produced product, niche, or marketing can seem boring for an entrepreneur. They want to concentrate on a new startup and essentially rewire the core business.
Lack of staff
Best print on demand companies' growth concept includes increasing the number of highly specialized employees who take specific tasks. For example, marketers and designers are the backbones of a business and the impetus for its rise. If you're afraid that your short-term profits will start to fall, and the salaries of employees will only inflate, then in 100% of cases you won't earn more by working alone.
Too much focus on the outside world
In pursuing a long-term plan to achieve business goals, corporate purposes can be overlooked, e.g., when employees can't keep up with increasing conversions. That leads to customer attrition, decreased employee productivity, and diminished referrals.
You can easily replace these points if you answer the suggestive questions:
- Whom should you hire right now?
- What internal problems need to be corrected to increase profits?
- Does your business have the opportunities to convert prospects into clients?
- Do your clients know that your business is still alive? If not, how are you going to change that?
- How are you doing with additional sales and referrals?
- What is your communication business scaling strategy?
A list of questions is endless, but their essence is quite clear. The decision to expand is entirely up to you.
To create an effective eCommerce model, you need to understand the scaling business factors. Let's consider the main ones.
Light asset base
Significant investments such as the creation of production facilities or warehouses lead to reduced scalability. On the other hand, light investments such as omnichannel or outsourcing drive higher scalability.
The degree of operational processes automation directly affects scalability. For example, the PodZa Framework assumes a dropshipping business model: as orders come in, task pool management is simplified and doesn't require constant monitoring by the business owner. In particular, PodZa automates the ordering processes, packaging, logistics, and reporting.
When your business model integrates the workforce, it'll lead to expansion. Of course, in the print on demand business, you shouldn't focus on cheap labor like taxi services. Unpopular and unprofessional designs failed marketing strategy, customer dissatisfaction after talking to customer support and poor website usability, etc., will be just the tip of the iceberg.
The degree to which your POD model can be replicated in other markets affects scalability. If your business has a universal cultural identity, it'll be lighter for you to scale up (just look at the H&M brand).
Increasing production while keeping costs low has never been smooth or easy. Implementing a business expansion model requires identifying resources, challenges, and stakeholder interactions to enhance the value proposition. Next, we'll look at practical tips to help make your startup more scalable and investment-friendly.
Our top tips on business scaling
1. Extend your skill set
Scaling an eCommerce business requires an expanded skill set. It’s essential that the team you work with strives to achieve your goals without sacrificing quality. Ultimately, even training can shorten your work and expand the business effectively.
2. Build partnerships
So, our second tips for scaling a business is building partnerships with print and product-service suppliers, trading partners, and even customers will help develop positive market statistics. Scaling an online business and a strong PR network are the keys to long-term prosperity.
3. Invest in technology
Software integration is a key aspect of business scalability and our 3th tip: it not only reduces labor costs but also reduces expenses. Efficiency depends on the solutions that the entrepreneur implements. Let's consider the most suitable ones for printing on demand.
- CRM is a system that operates with large amounts of data, including communication channels, company website, marketing materials, social networks to learn more about the business target audience. That allows increasing customer satisfaction and retention.
- HRMS is a human resource management system that automates manual tasks and sorts data according to needs.
- Frameworks that make it easy to manage eCommerce destinations such as POD, Dropshipping, and W&F. For example, PodZa, which not only provides integration with external services (Shopify, Etsy, Google Drive, ShipHero, Stripe, Vatapi) but also has a wide functionality for the print on demand business. The peculiarity of this platform is that the customer doesn't need to look for additional software. PodZa can be expanded (refined) in any direction, adapting to the specific business processes.
4. Find your team
It's essential to hire experts to improve process optimization and task delegation. The high-quality execution of several studies will be an excellent impetus for business growth and, accordingly, customer satisfaction. Consider hiring people from a third-party organization or freelancers.
5. Focus on increasing sales
The business scaling strategy provides an effective sales plan that directly depends on your audience knowledge, team, software, and partners. They must implement your plan and drive operations of your business expanding.
Scaling an online business begins from the stage of its creation when you know where your business should be in 10 years. It's essential to predict things that might happen against your plans. Covid-19 became such an example when more flexible entrepreneurs took preventive measures, survived, and could even scale. Of course, this would be very hard in retail, but eCommerce has a huge pool of opportunities for business expansion and growth. That greatly simplifies entering other foreign markets if you have an expert team, technological solutions, and, most importantly, the desire to grow.