Scalability is one of the most important aspects of every business. No matter which industry you are from- telecom or finance, software development or manufacturing, your business must be bbuilt-in a way that with time, you can expand it easily at minimum costs.
If scalability is a bit of a gray area for your business, then this write-up can serve as a basic guide for getting started.
Is your Business Scalable?
One thing you need to get out of your way first is, well, finding whether your business is even scalable or not. Most businesses that are based on the owner’s skill set or talent are not really scalable. This is because such businesses are limited by just one person’s abilities.
A scalable business is the one which is able to keep the costs low while increasing the revenue gradually. In fact, the less is the involvement of the owner, the better it’s for scalability.
A good example of a scalable business is a software firm. This is because while the initial investment for developing software products may be high, once that’s being taken care of, the business can simply make copies at a very small cost. Similarly, e-commerce, or rather any kind of business that’s selling products online is highly scalable. This is because revenue can be increased by promoting the business through blogs, webinars, and other popular forms of digital marketing tactics.
Making your Business Scalable
Now that you know what makes a business scalable, you can change your business model accordingly. The following are some of the key features of a scalable business:
- Optimum Cashflow
Cash flow problems are one of the leading causes behind business going defunct. So, if you want to scale, you must ensure a good cash flow. The following are a few tips that can come in handy in that enterprise:
- Make it easier for your customers to clear invoices by offering as many payment methods possible. Apart from the standard debit card and credit card options, you can also offer them to pay through digital wallets.
- Levy a penalty for late payments if you aren’t already and let your customers know about it. A good way to do this is to mention it in the invoices. When your clients will learn about the penalty, they will be more likely to pay on time.
- Don’t merge your personal expenses with business expenses. That’s the key to good cash flow management.
Why would a successful business want to partner with another business? What’s the need? Well, believe it or not- partnerships in the realm of business are extremely important, even for the biggest players. For instance, Nike and Apple are considered as some of the most powerful companies in the world. Then why did they join hands in 2006? They were already successful. What were they looking for? Well, the answer is Scalability.
By working separately, the dominance of Apple and Nike was limited to some areas. However, by inking a pact they were able to venture into different realms and scale their businesses. The Nike+iPod Sports Kits, Apple Watch Nike+, are some of the excellent examples that support this point.
Automation is the future of businesses. There are all kinds of software available through either a SaaS or license model that you can use for automating various tasks such as invoice and expenses management, attendance management, lead generation, and what not.
There are several advantages of automation:
- Saves time- Employees can focus on important tasks that are more suited for a human intelligence
- Saves Money- The more business operations you will automate, the less number of employees you will need which translates to fewer salaries
- Scaling on the Go- Automation can make scaling super easy and fast. By establishing a system that can automate the majority of the workflow, you can easily hire new employees and train them in minimum time or add and sell new products without affecting the efficiency of your business operations.
If you want your business to be scalable, you must think two steps ahead. You need to make today’s decisions based on your future projections. If only that is being taken care of, all the pieces will eventually fall into place.