In the business world, few ideas are more important than growth. Chances are you have managed to get your startup business off the ground as there is a decent need for your product or service.
The big question now is, is your small business scalable? To be scalable means to grow revenue exponentially, allowing you to eventually step away from the day to day runnings of the business.
To ensure that your business is actually scalable and not just a job that you have created for yourself with a fancy title, have a go at answer the following:
If the business is dependent upon you, then you are the business. This why so many small business owners work hard to essentially remove themselves from their business day to dy runnings. The aim is to keep hiring, keep scaling, and keep improving, all without being personally involved in the work.
How have they succeeded? For example, finding out how many staff they now have could give you a rough idea how many you'll need. Understanding your competitors business model and growth journey could help you learn vital lessons on whether your business is scalable to begin with.
Identify any walls to growth. There are several factors which could prevent your ambitions such as lack of leadership skills, lack of funding or weak cash flow.
It's unlikely that your current infrastructure could move your business from last years revenue to a 7 figure sum. But, a plan to build to the next level should be on the horizon if you want to scale up. A plan that highlights areas of importance for development and clarifies the resources and people you will need.
Whether you offer a product or a service you should aim for profit margins greater than 50% to be a scalable operation. Being highly automated in day to day business is key.
It’s important to realise that you can’t spend all of your time managing your business operations. If you really want to grow and scale up in the future make sure you’re taking advantage of tools that help you get things done more efficiently, so your business isn’t just another job.
Check out our independent review of the best productivity software available to small businesses, helping you to streamline your operations and giving you chance to plan for future growth.