What Makes a Business Scalable?
Making a business successful requires a lot of effort. You have to give your sweat and blood in crafting a success-driven plan, further implementing it with utmost perfection and trying different methods to gain revenue.
While some of these work, some debunks your failed attempts and clunky strategies.
But hey, you know what? There is a proven way that can play a very important role in making your business successful. It’s called “scalability“.
It’s a popular word that is regularly used in the business world. But do you really know the factors that make a business scalable? Don’t worry, this think-piece will tell you all there is to know about scalability.
What Makes a Business Scalable?
On one hand, where some companies are struggling to climb up the ladder for years now and continuously failing in their efforts, the others work towards making their business scalable and reach great heights in a short time span.
A scalable business is one where the business, company, or organization is able to serve increased demand, without raising its prices.
This means that when the product demand increases and a great opportunity is knocking on the door, the company is able to increase its revenue with minimal cost.
If you are also willing to walk on the same path, here are the top 5 characteristics that you must build in the near future.
5 Characteristics of a Scalable Business
Automation is one of the finest ways to give your business the much-required push towards growth. Technology is ruling the world, and if you are not capitalizing on it – you are already missing out on a lot.
When companies are bombarded with opportunities, the number of hours in a day still remains the same. In these times, instead of doing everything on your own, it’s better to accept automation methods to complete your work effectively and effortlessly. Today, we have got great tools that make automation easier and faster than ever.
With facilities like artificial intelligence and SaaS software, companies can easily shoulder laborious tasks from their administrative man-force to these resources. However, you need to choose the areas that are in need of automation very wisely. Identify the areas that require you to give long, laborious hours. If you find these areas to be mentally exhausting, you can easily find technology-driven alternatives and automate them.
All you need to do is to commit to pursuing automation after analyzing different areas. Departments like marketing, accounting, and communications, can generate great results via automation.
Outsourcing is one of the crucial elements for a company’s healthy scalability. Partnering with other companies and enterprises that can lend you expert man-force for your in-house departments can benefit you in multiple ways.
This helps in making a company appear as an all-rounder who can not only overcome any challenges thrown on their way but also brainstorm expert solutions. Though businesses are all about taking risks, outsourcing eliminates the probability of failure by partnering with a professional who is trained in the specified field.
Outsourcing is a vital characteristic of a scalable business and the top players are already enjoying the benefits. It is really popular among marketing agencies where specific tasks like content creation, link building, etc. are outsourced to the experts.
Outsourcing not only helps you deliver a better customer experience but also positions you as a one-stop-solution in your industry.
Though reaching out to a bigger audience has always been a top priority for companies all over the world, one thing still remains unchanged… and that is –
It’s a lot easier and efficient to retain old customers instead of acquiring new ones for increased revenue.
This is a fact that attracting and acquiring new customers is a long and tough process. It needs a large investment in both terms, time and money. To prevent this cost, companies are cross-selling products to the existing customers, which also promotes scalability in the long run.
So, if you are also struggling to keep with the fast pace of the business world, retaining existing customers is a great idea to keep the revenue thriving. Sometimes, it also helps create a sense of loyalty within the customers which can be further capitalized for earning greater revenue or brand building.
However, retaining customers requires one to cross-sell their products/services by effective methods. But if done right, it not only helps save time but also allows you to cut costs.
Though attracting new customers and converting potential customers into real-time buyers is required to keep moving and avoiding stagnancy, equal or more efforts should be given to convert your existing buyers into loyal customers. Never lose touch with your loyal customer base to attract a new and larger one.
4. SOPs or Standard Operating Procedures
As we all know, as work opportunities increase and companies are looking forward to supply to an increased product demand, the responsibilities also magnify. The amount of work multiplies.
While such opportunities demand organizations to provide high levels of time and effort. Most times, companions begin to struggle in order to cope up with the increased workload. They fail to ensure timely-delivery or quality checks, which in the long run, results in the organizations’ failure.
Of course, automation takes much of the work off your shoulders but there are so many tasks for which depending upon artificial intelligence is not possible. Instead, what a company truly needs is effective SOPs or Standard Operating Procedures. A standard SOP is a well-written document consisting of all the instructions and steps to successfully complete a process, task, or challenge in an organized manner.
An SOP if designed well, serves as a step-by-step guide which is enough for completing a task without further help. This SOP is then distributed among the team along with proper training on how to follow it without any shortcomings.
Another important aspect of scalable businesses is flexibility. It’s vital to be flexible and to adapt to new situations and opportunities. If we look back, we can see an array of the world’s most famous and successful companies that went extinct because they failed to adapt to the changing times. Lack of flexibility was the number one reason for their unfortunate end.
Some companies go through the same scenarios when an opportunity arrives. They take longer than required to take action and before they can adapt to the situation, the opportunity is already gone. Thus, companies should work on being flexible if they want to take the lead and gain a competitive edge.
However, to be able to capitalize on the benefits of flexibility, you need an interrupted flow of money. If companies meet with new opportunities, they are expected to make sudden changes in their business plans, strategies, and campaigns. Sometimes, these changes require immediate expert man-force or advanced technology, both of which demand big investments. So, it’s best to ensure easy cash flow along with a flexible working process amidst your team.
Putting it All Together!
We just discussed the 5 characteristics of a scalable business and believe me, a business that can successfully develop all of these is definitely in it for the long haul aiming for a bright future.
Further, scalability not only ensures growth but also enhances your chances of being exposed to new opportunities. It also allows you to ace them and thrive in a healthy way.