Success in business doesn’t end in profit making and returns, it extends into scalability. A business can only be scalable if it is successful, and it can only be considered successful because it is scalable.
Scalability As A Concept
Scalability can be propagated by financial activities, business strategy or even both simultaneously.
Business strategy allows a business to structure itself in a way that it is ready to withstand pressure, crisis or unforeseen threats that may come its way. it facilitates growth and allows the company to stay top of mind in its market no matter the operational demands.
As a business owner, you need to perfect agility, to be able to transform, abate contingencies, and maintain success no matter what stage of growth your product/service is at.
Traits of a Scalable Business
- A vision: More than knowing the day to day factors to put in place for business to happen, business owners need to visualise where they want their business to be.
Without a future plan, you’re setting up your business to exist only in the present, and whilst that may work short-term, in the long-run (which is the main core of a scalable business, you may notice your business starts to fail because it wasn’t well planned for).
- A Tech enabled Business: A business that is digitally transformed and uses technological tools to enhance productivity is scalable.
With the aid of technology, there is profitability and major upsurge in sales. It provides a more reliable and accurate modus operandi for daily business tasks; for example, using a bookkeeping app like kippaAfrica saves the stress and trial of heavy manual bookkeeping duties, using hubspot to keep track of marketing activities helps with targeting and achieving goals.
- A business that is scalable is always well structured. It has an organised workflow that allows for assessment and management of operations, it also has a strategic distribution of duties to its employees. It must have an organisational structure; Be it horizontal, vertical, or cross functional etc.
- A scalable business is very data-packed, stakeholders of a business that is scalable know the importance of data and use it to determine what needs constant attention, and what needs to be discontinued.
- It has a solid marketing plan: There are a lot of fallacies surrounding marketing, especially one that states that marketing is not necessary when an organisation is already making profit.
This is false because a business can start to decline if it’s growth isn’t maintained, and maintenance of growth takes skills, expertise and the eyes and assessment of a professional; visit our website https://advisory.equilibriumzone.org/ if you want an assessment of your business from one of our consultants.
Benefits of Having a Scalable Business
- Business Growth: This benefit is a no brainer and it is the main reason entrepreneurs actually consider building their business for scale.
Optimization, monitoring and management of all available resources with a vision in mind provides exponential growth for a business for sure!
- It is way easier to secure funding: A major challenge with Small to Medium Businesses is that securing funding or capital can be a hassle, it can require ridiculous amounts of paperwork and queues before funding can be approved, Actually, without proper guidance it could even never be greenlit.
The structure that scalability affords a system is that it makes it standardised and more “legit” in the eyes of the public.
- It attracts investors and partners: Private Investors and Business Leaders are interested in businesses that can bring them returns, and not just immediate but in the future.
The business model of an organisation has to be scalable for an investor to look at the business with promise.
- It allows businesses to enjoy the full benefits from economies of scale: This includes diversification, innovation, brand equity, talents, revenue, and competitive advantage. A smooth interaction and usage of these elements promotes a stable, healthy, and even rapid growth for a business.
With economies of scale, business owners are able to increase profit and cut down expenses. As long as you improve the technological process, the efficiency increases, and the costs go down too, and isn’t that the entrepreneur dream? To produce more with less resources
That is an aim to be working for when scaling your business, the great thing is, it doesn’t just work for big businesses.
Having learnt these benefits, kindly answer these few questions to test your scalability potential;
Your business can be scalable; whether small, medium or large. Follow us @EZ Advisory on ig for more business updates, or join our founder’s community https://advisory.equilibriumzone.org/fc/ for notable updates, one-on-one assessment and consultation on everything business.
A scalable business is a healthy business ready for true business growth and success.