“Scalable business” sounds a tad scary for most laymen. To get everyone on board, let’s de-bone that.
Scalability refers to the ability of a company to increase its production and cater to a higher number of people.
Why would you want to scale?
Two answers come to mind: growth and revenue.
Everybody wants to maximize their revenue and drive growth in their businesses. Nonetheless, not all companies are ready to take off on this route. In most instances, it’s too soon. The items below will help you plan on how to make your business scalable or how to come up with one.
1. Be Growth-Driven by Setting Goals with a Stringent Timeline
Build potential for your business to be launched.
You don’t only create one. That’s now how it works. Guiding key guiding points are mandatory before launch it out in space. It needs to be ready so that when it takes off, it’ll go smoothly.
You’re wondering how you can do it. Let me tell you.
Set realistic but challenging goals. Don’t sit in your comfort zones. Set goals that can be measured. Meet them, scale them little by little.
The underlining principle is to measure your growth by key performance indicators. You need to warm up, until that it’s ready to take off. The last thing you want is to scale up only to be pulled down by a myriad of setbacks. You don’t want to be faced with a sad, painful fact that yours isn’t ready.
So, do not rush it until that it’s fully set. Any machine that is sped up to function way beyond its standard, current capability finds itself exploding in no time.
As a business owner, you need first to build the potential for your business. This can only be done by setting precise, realistic, but challenging goals that can be quantified.
In physics, potential energy is then converted into kinetic energy once that action has taken place. The greater the potential energy, the higher it can be set into motion. The same principle guides your business.
2. Maintain and Focus on Efficiency at All Cost
The importance of this can’t be stressed enough. Efficiency shouldn’t be perturbed and sacrificed.
Why? Because it is a critical predictor that your business is ready to scale. While scaling up, you should be able to maintain the efficiency that you have now. If not, it should be better.
The bottom line is, the current operations should be maintained if not improved. You can hire more people if needed to sustain efficiency, but it shouldn’t come to the extent that getting more workforce becomes a financial burden.
3. Collaborate and Network
The partnership is the key here.
Establish a healthy mutual relationship with other entrepreneurial entities, those that have the same customers as your business. Work with them to build a robust customer base network. Not only will it help you market your brand, but it will also help you establish or strengthen its credibility.
It also allows you to learn at a much faster rate. Collaborate with other businesses that have a similar set of customers or prospects as yours, instead of treating every single of them as your fierce competitor. Do not get carried by the wind, however. While networking, you will need to work hard to maintain your own brand’s identity. The goal is to work with each other, who you share a similar audience to get more prospects and improve your relevance.
4. Outsource for Others’ Expertise and Be as Digital as Possible
You don’t need to do it all by yourself and exhaust your reserve. Outsourcing third-party players have always played a pivotal role in making your business processes effective. You buy their expertise at a reasonable cost, so you don’t have to learn them in-house.
Imagine all the logistical and financial burden that it’ll cost you if you try to learn things on your own before being able to apply them later on. It isn’t worth the time and resources.
Think of it this way; you don’t have to plant and harvest the vegetables you will cook. A lot of them can be store-bought. Not only it saves you time, but it also saves you effort.
The digital platform has flourished at a blazing speed because of its ability to disseminate information efficiently and to automate important business transactions. Sending emails and tracking records are some. Take advantage of this opportunity. Otherwise, others will edge you out of the competition.
5. Prepare the funds
When you are scaling, you are growing your business beyond the amount of money that you currently have to sustain your operation and continue your production. At this point, you’ll need other resources for your cash flow.
You can seek for investors. They give you the money that you need in exchange for equity or deals they would offer. While this is a great opportunity and an intuitive approach to scale up, this isn’t the only option.
Some are less straightforward approach, but feasible. Taking it out from your pocket or bootstrapping your scalability is one. You are loaning from a bank as another alternative. Establishing a passive income stream with very minimal cost is also one way to supplement the influx of cash. It’s not that difficult. A simple example can be creating a paid digital subscription service.
But why would you consider getting an investor join you?
The upshots of finding and getting an investor are plenty. One, it can make some logistical areas of your business secure. Two, it can help strategize your operations.
When you get an investor, you don’t get only money; you also get support. In return, you need to listen to them and give up some control. It isn’t necessarily a bad thing because they have gone and succeeded in the route that you are now traversing.