Having a scalable business model is key when it comes to creating a scalable business. It is much more straightforward to start off with a scalable model than it is to attempt to change your business model later on, although this is possible.
In an ideal world you would do your market research before you start your business, to ensure you’re building a scalable business. Not only does this provide a quicker route to business success, but it may also increase the possibility of attracting the right investors.
What is a scalable business?
When you have scalability in business, this means you are capable of increasing your revenue without increasing your operating costs at the same rate. Your profits go up faster than your costs.
Businesses without a scalable business model can grow but won’t scale well. A good example of this is a firm of solicitors. Every time they take on additional clients, they increase their staff workload until the point where they need to employ another solicitor, and perhaps eventually another legal executive or administrator. Costs are increasing at the same rate revenue increases, making scaling a challenge.
Business scalability model
If you get specialist business advisors involved in the early days of your business, assisting you in writing the business plan, then this will make it easier for you to ensure your business is scalable.
Elements such as automation can make it easier to scale a business, and it’s important to outsource the right things so that you retain control over the core elements of your business as you grow.
Is my business scalable?
Would your business work as a franchise? If the answer to that question is “No” then your business probably isn’t scalable.
Getting the right team in place for business scalability
There’s a method you can use to ensure you have the right people in place in your company to help you on your path to building a sustainable, scalable business that brings you business success.
There are certain functions in every business, so you need to start by listing out all the functions of your business. What has to happen and who needs to do it?
It may be that right now in your business, the answer to “Who needs to do it?” is you, but writing out the functions will enable you to identify which functions you want to get off your plate first. Then you will have a business strategy for building a great team around you.
What to ask yourself
Essentially, you are asking yourself the question, “What do I want to delegate next?”
If you do already have staff then you need to list out the functions and add a name to each one depending on who is accountable for that function. Then you can review this to see if one person is responsible for too much, or if efforts are being duplicated. You’ll also have a clearer picture of whether the right people are working on the right things.
A business coach or mentor can help with this process and ensure you are going through things in the right order to put you on the path to business scalability.
You can start today by spending ten minutes on our BizSmart Checker.
This will help you pinpoint your strengths and weaknesses, so you can see where help and guidance is needed. Invest just ten minutes now to put yourself and your business on the right track. Click here to start using the BizSmart Checker now.