This chapter is an extract from LegalVision’s Online Business Manual. Download the full guide here.
If you’re looking to build a large business, there will come a time when you have to invest in scaling your business. But first, you will need to reach product/market fit — are you selling a product that enough people in the market want to buy?
Scaling Process
- Build and ‘soft’ launch
- Test product
- Collect feedback
- Iterate
- Grow/Scale
Scaling an Saas Business
With an online, digital service, SaaS businesses are global from day one. Your online business can sell to customers all over the world. Scaling often involves using digital marketing to acquire lots of customers globally. Search Engine Marketing (SEM), Search Engine Optimisation (SEO) and working with affiliate programs are all examples of marketing techniques SaaS businesses use to scale.
Scaling an E-Commerce Business
E-commerce businesses are harder to scale than SaaS businesses because you are dealing with a physical product. E-commerce businesses usually start in a particular country or city. Scaling then requires a founder to set up overseas operations. If you want to expand your business by growing it overseas, you should ask:
- Do I have good relationships with my suppliers and can they cope with increases in demand?
- Do I already have a substantial number of overseas customers or has thorough market research shown that my product or service would get traction in a particular foreign market?
- Is entering a foreign market the best way to scale the business? Is selling a complementary product or service to existing customers and leads more efficient?
- Do I have sufficient capital to fund foreign marketing spend, and operate my business at a loss for a significant period of time?
Answering these questions will give you a good idea whether you should consider expanding overseas.
If you have any questions about scaling your online business, you can contact LegalVision’s online business lawyers by calling 1300 544 755 or filling out the form on this page.
It’s now easier than ever to start a business online. But growing and sustaining an online business requires a great deal of attention and planning.
This How to Start an Online Business Manual covers all the essential topics you need to know about starting your online business.
The publication also includes eight case studies featuring leading Australian businesses and online influencers.
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