Creating and Building a Scalable Business
If you’re testing out the waters of entrepreneurship, there are a lot of things to consider. There’s a difference in a side hustle and a full-time business. And if you have any desire to take your idea to the next level, you’ll need to consider scalability. Focusing on scalability as you start your business will be instrumental in your ability to grow fast, efficiently and profitably.
Don’t let the term “scalable business” scare you.
What is a scalable business?
In simple terms, a scalable business is one that is equipped to deal with increased demand. In today’s world, tech companies are seen as the most popular scalable businesses because you can develop more, add users, and grow the business with less people than say a service based organization. But, serviced based businesses can be scalable too.
The more you think about how you’ll scale your business, the more likely you are to build profitability and ROI faster.
By definition, a scalable business is a specific model that allows for growth while adapting to changes in markets or expansions to new ones. Many types of scalable businesses include software, blogs or podcasts, online courses and subscription based programs where you can easily add more customers without significantly increasing operation costs.
Realistically though, a scalable business is one where you can create processes simple enough to deploy into a new market with minimal effort. The keyword here is process!
Why Think About Scalability?
If you’re in the business needs investment, whether through pitches, angles or a financial institution, understanding your scalable business model is imperative. Identifying how you can grow your business through efficient processes, procedures and often technology while keeping costs lower equals profitability and higher return on investment. Financial professionals love that!
Is A Scalable Business Right For You?
If your goal is to build an empire or grow your small business into a bigger one, a scalable business model is a must. It’ll minimize the amount of time it takes to implement your business on a larger scale (get it?). And even if you don’t have the desire grow your business into a bigger company, considering scalability options is still important for your succession plan.
How Can You Prepare Your Business to Scale?
Develop Processes & Procedures
First, a scalable business prioritizes the development of processes. Creating a data bank with information, access, documents, processes and procedures that are frequently used is essential. If automating is possible, do that. Repetitive tasks like scheduling, payroll, onboarding and training of new employees, maintaining a customer database or anything else that’s repetitive, can typically be put into an automation system.
Identify Communication Channels for Collaboration
Whether it’s Slack or Google Hangouts, your team can communicate on the same thread and conversation, rather than digging through email threads or even loosing emails in their inbox. Choose a communication platform that works for your business and your employees. Make sure it supports streamlining communications, so it will continue to support you as your team and business grow.
Streamline Hiring & Onboarding
Create a hiring strategy and process that’s easy to follow and leads to quick and efficient addition of employees. We’ve said this above, but it’s the creation and simplifying of processes that leads to scalability.
Have an onboarding process that allows you to quickly train new employees, allowing them to quickly contribute to growing the bottom line.
Build It Like You’ll Sell It.
A good way to create a scalable business is to think about how it will go on with out you. Your exit strategy often depends on the processes, systems and opportunities to grow that your business offers a new partner or owner. Thinking with the end in mind ensures you identify management roles, procedures and automation so that the business can be run smoothly should you ever sell it. Even if you have no intention of leaving your business, building it in such a way where you consider it being a possibility will help you to find the right way to scale.
Ready to Scale Your Business? Let GROW Help.
We work with entrepreneurs and business owners of all sizes. The concepts and terms around scalability can be overwhelming, but that’s what we’re here for! If you want ideas on creating scalable processes, or if you’re not sure it’s for you, then reach out to us. We have several classes and experienced business mentors who are here to help you create the business of your dreams.
Whether you want help looking at operations improvements, market opportunities, expanding your product or service offerings or financial evaluations, we have the connections to help you. Learn more about all the resources available through our programs by attending an Intro to GROW session this month, or contact us today to learn more.