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Is your business scalable?

After overcoming the survival stage businesses can exponentially increase their revenues.
Scalability not only means the ability to grow, but to do so with minimal investment and costs.
If you want to know if your business is scalable, you need to review different parameters such as the current demand for your products or services and your own ability as an owner to manage risk.
Have you ever thought about whether your business is scalable? What does that mean? During the early years of a business we are more concerned with making it survive than it's growth. But when we are certain of its viability, then it is time to think about how to increase revenues and profits for the owners in an exponential way.

As experts explain, a business model is scalable when it has the capacity to generate more sales for a minimum investment and stable costs. That is, when growth is not hindered by a rigid production structure (such as the existence of a single supplier) or by a shortage of resources (such as the lack of capital to open another physical location); and, again, when obtaining more income does not mean a greater effort in time and money than the current one.

Now that you are clear that scaling doesn't just mean growing, let's look at the factors that determine and indicate that your business is on the right path to generate more wealth.

A proven product or service

If you still have doubts about the demand for your products or services or if you are still making adjustments to your value proposition, it means that your business is not ready to scale. So no matter how many sales you have in your business, even if you are already receiving orders from abroad, you need to wait longer and work on your business model as well.

Scalability needs firm foundations; otherwise, years of work and effort can fall apart in a few weeks after a bad decision.

Clear and automated processes

Are you still at that stage where, as a business owner, you are handling many tasks at once? Are there processes that are still being done manually? Are you just now incorporating automation tools? Are there many areas of the business that do not have clear and documented processes? Then your business is not ready for the big leap.

Without processes and automation tools that allow you, for example, to have better control of inventory in a store, your team will not be able to absorb a sudden increase in activity, the amount of information to be processed and customer demands.

The ability to manage risk

In a stage of accelerated growth, business owners must manage increasing costs, new demands and unknown scenarios. Therefore, not only they, but the entire organization, must be better prepared to manage risk.

That means that the operations must be agile, costs must be controlled and monitored so that your team of collaborators is able to make their own decisions, since the learning curve is much steeper and the demand for results is greater.

Outsourcing of non-strategic activities

Another clear indicator of a company's ability to scale is the outsourcing of tasks to save time and money on activities that are important for daily operations, but have no impact on strategy.

This is the case of outsourcing logistics, shipping or accounting management when there is not yet enough of a budget to hire an accountant 100% dedicated to the company.

Having the necessary talent for the new stage.

Before starting a scaling process, it is also essential to have the personnel that will be in charge of new strategic tasks, such as the management of the online store or the export area. Are you clear about the new positions to be filled? Have you already defined the profile of these new professionals? Do you know how difficult it is to find them, and what you will have to offer in terms of salary and compensation to attract them to the business and keep them?

Consider that, many times, the best recruitment is internal; therefore, with the necessary training and a fair offer, current collaborators can become key pieces of the new expansion stage.

Openness to change

In order to scale up, it takes much more than an owner with innovative ideas and the ability to manage risk: it requires a corporate culture open to change, where all employees feel that they have room to propose new ideas, take risks and make mistakes, without jeopardizing their chances of growing up the corporate ladder.

In an environment of creativity and motivation, growth is made possible beyond material resources and the number of working hours. That's why you not only have to surround yourself with the best talent, but also be able to clearly convey your vision.


Those are some of the factors to take into account when considering scaling up your business, we hope they prove useful, and if you're thinking about growing your business it's always a good idea to check 7 tips to help you make a good post for your business.




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