When build a scalable business, whether as a personal project or with the participation of partners, we want it to grow and have success quickly. But for our business or company to develop, we must find a way to do it without losing customers or reducing the quality of service. We can carry out this business process in the best way by applying Scalability. With this method, we search increase revenue and make our company succeed in all markets with the minimum cost level.
What is business scalability?
The term scalability of a business defines the capacity of a power company multiply your income without having to increase your costs. This will greatly increase its growth potential, even promoting it internationally. Actually, it is defined as all marketing strategies and design of the business model, making expenses grow linearly and revenues increase exponentially.
Can any company be a scalable business?
Every company is different when it comes to be scalable, however there were business models that did not have the possibility of scaling. For example, a clothing store in a town has little room for scalability.
But then, how has Amancio Ortega managed to expand Inditex's clothing brands throughout the world? Well, due to the business model, there are no bad or good companies or sectors, there are only people who know how to carry them out correctly or not. With the arrival of the Internet, it could be said that practically all businesses can scale to perfection.
Characteristics of a scalable business
For a business to have a wide growth margin It must present a series of characteristics, such as the following:
- Steady improvement. Businesses that can scale are always looking for improvements that can boost it, optimizing its processes and the costs of its services.
- Adaptability. The growth of a business is not born in a proposal, therefore, for its correct effectiveness, the business must be open to reinvent yourself during the time.
- Volume of users, the infrastructure of a scalable business must be capable of supporting a huge volume of users, without the need to resort to additional costs.
- Internationality. Being one of the main growth objectives, our business must be able to internationalize to achieve full growth.
These characteristics make the possibility of scaling be much older. But it is also important to present in our company some pillars that identify or differentiate it from the others. We must guarantee anticipation of the needs that may arise during growth, allowing the business development be done in a controlled manner.
Taking into account the expected growth of our business it is important to have the necessary amount of resources. On the other hand, it is significant to be able to adapt to the new frontiers that are reached and guarantee a minimum base of resources to boost scalability.
Why does a scalable business fail on many occasions?
There are many companies that work well and, when they take the step to internationalization or expansion within the same national territory, they go bankrupt.
But… how is it possible?
Most companies focus on producing more, or going faster. However, they rarely focus on optimize what they already have, thus lowering production costs to increase revenue.
scale a business Without having full control of costs it's like going for a run in flip flops, you can do it but you won't get very far.
That is why we present you Zoho Expenses. This tool allows you to obtain all your costs at a glance, knowing what percentage is allocated to salaries, what percentage is allocated to marketing, innovation, technology...etc. All this will give you a better basis to face the great challenge and achieve a high scalability of your business.
Click here for more information on the functionalities of the tool.
Advantages of a Scalable Business
Having a scalable business, will provide your business with different advantages such as the ones listed below:
- You can adapt to customer needs and offer a most personalized product or service possible.
- The resources used for your business will vary based on your needs.
- revenue will grow faster than costs. That is, you will earn more.
- You can react and make changes faster before the variations that appear constantly in the market. If you adapt quickly, before your competition, you will have an advantage.
- possibility of continuous improvement. The idea of a scalable business is to improve more and more, and not stagnate.
What do you think about everything related to scalable business? Do you think it is important that yours is? If you would like more information on how to achieve all this in your business, do not hesitate to contact us.
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