5 signs that indicate your startup is ready to scale

Concerns over the current course of the business cycle amid soaring inflation, tighter monetary policy and even tighter labor markets have seen small business confidence hit a new low in a backdrop of tumultuous conditions.

Overall, small business confidence has fallen to new highs. According to an earlier CNBC August report, the Small Business Confidence Index fell to 42 points at the start of the third quarter, four points lower than the previous quarter.

Today, more than half (51%) of small business owners and entrepreneurs rated the current state of the economy as "bad," up from 44% in the second quarter.

The post-pandemic economy, which has brought widespread uncertainty to business owners and consumers, has left many owners ringing red as they try to financially protect themselves against an impending recession.

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The big story that roughly 90% of startups fail and 10% fail within the first year of inception seems increasingly realistic these days.

A lack of financial capital, consumer support, and the right services or products in a highly competitive market has pushed many startup entrepreneurs even further into the black. But these and other conditions have been a persistent challenge for many startup owners, and for those who may scale their businesses in the months or years ahead or who now feel more perplexed than ever.

Despite tough economic times, ranging from higher operating costs to tough working conditions, there are still a number of startups – across multiple industries – that have the potential to increase their capacity, whether that means expanding their service or product offerings, onboarding new employees, or even going public with a physical store.

Signs that it's time to scale your business

No matter what conditions you're operating in, it's time you started noticing the signs that will help you realize it's time to scale your business. Here are five of the most common.

You still have funding in progress

Whether your startup was lucky enough to secure a few lucrative funding deals with credible investors or you recently signed up new backers ready to invest in your new line of products and services, startups that still have abundant funding despite the refusal be potentially ready to develop their projects in the months or years to come.

It is always best to consider how funding is used and where it is primarily allocated. If most of your finances are currently related to research and development, you might still want to wait before getting too big too soon. If the funding is still there, it's a good indicator that the startup is still in a good position and opportunities for scaling could be right around the corner.

Optimized sales

Sales have exploded and the startup is finding it increasingly difficult to meet the high demand. If you notice that you need to hire or onboard new employees to generate revenue and growth, you may need to think about how you can scale your business in the months ahead.

Better to play it safe, because most of the time, increased sales can be driven by market trends, and consumer buying behaviors can change on a whim. If your sales strategy is still on track with startup goals, look for ways to initiate optimized sales growth, while onboarding a talented team.

Solid and loyal clientele

Startups that focus more on rapid growth, and not on consumer demands or building a loyal customer base, tend to fail much faster. This may not be the case for all startups, as industries tend to differ and consumer buying behavior.

Nevertheless, startups t...