In simple terms, business scalability is the purposeful strategy ensuring that every decision in your business is made in the context of preparing for growth. Many business gurus assert that scalability should be your singular focus. Indeed, when you prioritize scalability, you are guaranteed that as you grow, your systems, processes and people will be poised for success. Below are six key reasons to make business scalability a priority.
Scalability allows you to make the most of your current resources while expanding into new markets. Think Airbnb and Uber: Scalable models allow for a continuously expanding customer base which uses the same set of resources for strategic and administrative support.
In this ideal model, your initial investment in systems, process, people and training is designed for optimal performance in the current state of your business. The same system and people are able to handle continued growth without additional resource investment.
Investing in scalable resourceslike customer relationship management (CRM) which allows for automation and customized email, marketing and sales strategies means you’re prepared to support growth without additional investment.
CRM will help to organize customer contacts, lead scoring and customized communication strategies for 100 customers or 1,000. With a scalable resource like CRM, your team will be equally prepared to support your current customer base and the growing volume of customers on the horizon!
All failure is failure to adapt, all success is successful adaptation.
Today’s consumer is often both more informed and more demanding. Externally marketplace trends and consumer behavior can change rapidly. Internally, a changing labor pool can impact workplace expectations. Such changes can wreak havoc on a traditional small business but scalability means you’ll be prepared for change even before it happens.
The ability to respond quickly to market changes, customer demand and technology advancement is critical. When your business is designed with scalability in mind, you will be able to adapt process, workflow and even products responding to changing demand more rapidly—and that equals happy customers.
Because scalability is focused on equipping your business for maximum growth and minimum cost, efficiency and reduction of waste are inherent. Scalable processes and systems that will adapt quickly to greater volume and evolving demand will seek out the simplest, shortest and most cost-effective route from point A to point B.
Efficient processes will help your business make the most of your people resources and eliminate waste. Consider the example of successful scalable business models like IN-N-OUT Burger, where the focus is high-quality, customer service, simplicity and teamwork. The key to creating and sustaining a scalable company is simple, effective processes conducted by a valued team who continues to focus on an exceptional customer experience.
People are the most valuable asset in your business and consistent management is one way to create value for them. Scalable processes and increased efficiency often allow you to align employees’ roles more closely with their strengths.
Gaining scalability will result in more consistent processes for all. As your team creates and engages in processes and systems that are agile and adaptable, consistent process flow is critical. Management processes should be adjusted accordingly to support employees in more efficient process flow. The employee experience is equally as important as the customer experience.
Reasons one through five may culminate in reason six. As consistency, efficiency and revenue increase, scalability means added stability for your business, your employees and for you. With scalability, your business increases self-sustainability. Increasing your revenue without significant increase in expenses means financial security to pay bills, provide employee benefits and invest in long-term resources.
Scalability can also equal additional flexibility and freedom for business owners. When your business is running at peak efficiency, with CRM and automation helping to provide an exceptional customer experience, your employees can focus on using their strengths to grow your business. You are positioned for growth with confidence that your whole business system is designed to support growth without demanding additional investments of time and money. Make business scalability a priority—you, your customers and your employees will be glad you did!
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