24/08/2021
Scaling a business online comes down to strategy and tactics you implement.
Here are a few things that you need in place before trying to scale your online business.
1. High profit margin product: If you want to scale and grow exponentially, you'll need products with good margin. A 50% product margin requires a 2x ROAS to breakeven, a 70% product margin requires 1.43x ROAS to breakeven. Higher margin allows you to spend the necessary amount to market your brand profitably.
2. Scalable supply chain: This one's a no brainer. You need to make sure you have a scalable supply chain and inventory, so you don't run out of stock as you scale. Running out can drastically harm your campaigns' performance.
3. Access to capital: When scaling, you'll need to test ads and start increasing your ad spend. For that to happen, you need access to capital.
4. Growth mindset: Easier said than done, you'll need the growth mindset if you want your brand to scale. You'll need to understand that this is a process; what works for one brand may not work for another. There is no secret sauce - just solid strategies, tactics, and test and learn approach. You will be operating at a loss initially, but once you've found what yours for your brand, it will pay off. And always remember: create, test, optimise and iterate.
5. Understanding of fundamentals: The knowledge of business and marketing fundamentals go a long way. This foundation ties everything together and fuels your growth, because you understand that this is how all great businesses are built.
