Stay flexible by outsourcing
Many scaling businesses succeed by operating with small, nimble and adaptable teams. As they grow, however, trying to solve every problem in-house becomes a burden.
Scale-up growth doesn’t always follow a linear path. If a business needs a larger workforce, it can take significant time to hire new employees and get them settled into the organisation. Equally, if growth in a market slows, divesting a business of employees is costly and can be particularly painful for scale-ups which have established close working ties.
With many companies trying to operate on leaner budgets and headcounts, choosing a qualified outsourced accountant is a great investment, and businesses’ first step towards a lower and higher-value workload.
Externalising accounting, tax and legal functions lets a scale-up business continue to operate flexibly, while benefiting from large teams of skilled professionals. It also allows them to reduce headcount and present a tighter and more focussed P&L sheet for investors.
Thinking about taxation
Taxation is another consideration that looms larger and larger for a growing business. For tech companies, the particular speed by which they bring their products abroad only exacerbates the problem.
It’s therefore imperative for technology companies with global ambitions to think early about a plan for managing multiple tax jurisdictions. Establishing a foothold in a jurisdiction with an established structure to support tax neutrality can significantly smooth the route to international growth.
There is an additional advantage in access in the most well-established beneficial tax-regimes: decades of accumulated expertise. In regions such as the Channel Islands, where Hawksford is headquartered, companies are within easy reach to a far greater range of potential board members with established specialist knowledge of any technology sector.
Make connections and bolster your boardroom
The importance of showing a high calibre of experience and sector knowledge at the boardroom cannot be overstated. As businesses expand, investors are comforted to know that a business has sought the advice of individuals with a proven track record of helping companies grow.
Technology thrives in ecosystems where networking and collaboration are encouraged. Digital Jersey, for example, is an independent body which has been actively cultivating one the of the world’s most vibrant digital communities. In 2019, Jersey boasted over 400 digital businesses, and over 3,000 professionals in digital tech roles. This means that growing tech businesses are opened to an extensive and focused community where they can bring in senior viewpoints and build more resilient strategies.
Opening up - new processes, new markets, new relationships
Reaching scale-up stage is a tremendous achievement for any business, and only happens as a result of hard work, a clear vision and a passionate executive team.
Scaling up your business should never feel like abandoning your values, but it does require mental fortitude. Inviting the right advice is a significant change, but it’s also the best way for scale-up business to keep exploring exciting new markets and opportunities, solving the problems it was founded to address.