How can you increase the efficiency of a company that has reached its development limits? Oleg Krot and Yura Lazebnikov, managing partners of the international holding TECHIIA, shared their experiences. In their column for Entrepreneur, Oleg described 5 methods that help partners scale their businesses:

• delegate authority;
• enter new markets;
• unite competencies;
• check the “cleanliness” of money;
• constantly monitor the market.

Delegation

Delegating authority is both simple and challenging at the same time. There was a time when I was involved in every work process, and people would come to me with all sorts of questions. When it was time to move forward, it was difficult because people would bypass their managers and come to me out of habit.

To navigate this path more effectively, control questions help: “How much is my time worth? How much will the business lose if I do my colleague’s tasks instead of focusing on my own work?” Of course, there are situations where intervention is necessary. It’s essential to identify those situations from the start.

The most effective approach is to nurture self-sufficient employees who share your values. Make sure they transform into entrepreneurs in their respective roles. Eventually, they can become partners, provided they have the potential for management and earn the team’s respect.

New Markets

Exploring new territories, language groups, and political systems insulates businesses from crises that are beyond the control of the entrepreneur. When a financial or political shock occurs in one of the countries where a company has a presence, it can react with minimal losses.

How to choose a direction? It’s worth paying attention to neighboring countries with a similar cultural context. You can study developed markets, but they come with high competition. It would also be beneficial to learn more about Latin America, the Middle East, North Africa, Southeast Asia, and some countries in Eastern Europe.

Uniting Competencies

Managing individual companies is easier than managing a holding. However, a holding consolidates the expertise of different specialists and allows assets to reinforce each other. When we launch a new company at TECHIIA, many processes follow a familiar path. The financial, legal, and communications departments all provide a solid foundation that facilitates a smooth start for the new business.

As the company gains momentum and brings in new experts, they can find support among colleagues within the holding. In short, if the owner of a company plans to scale, changes in structure and management methods are inevitable.

Clean Money

Compliance is not just a reputational element or a new trend in ensuring the security of economic activities. It is a fully operational story about how you may be denied an account in a new country if a bank suspects dubious income, collaborations, or other interactions in the past.

TECHIIA does not engage in business with partners who cannot verify the source of their funds. A clean reputation is more important than immediate gains, so our financiers take extra time to vet potential partners.

This advice is relevant even for those who are not currently looking towards new markets. Foreign businesses that seek to involve you as a partner will adhere to international standards and undergo Know Your Customer procedures.

Market Trends

Even when the market situation is favorable, it is crucial to monitor and optimize processes within the company. A crisis will inevitably occur, so it is essential to be prepared. The first step is to create a reserve fund that will help navigate through challenging times.

Any crisis can accelerate development. It is worth analyzing the company’s indicators that can be improved right now. If the solvency of customers is declining, it is not advisable to raise prices. Instead, allocate time to enhance loyalty and attract new customers. Once the situation changes, this will serve as a basis for acceleration.