The ultimate goal of a company is its growth, a yardstick by which to measure the reach and impact of its services. With that in mind, we created this content by compiling the best tips for those who want to, but still don’t know how to scale their business.
Here, you will learn the meaning and importance of scalability for the success of an enterprise, knowing three practical and indispensable guidelines in preparing your company for the challenges of this journey. Follow up!
What is a scalable business?
Scalability is an administrative concept used to identify opportunities for a business to increase revenue, without having to leverage its operating costs in equal measure. In other words: it is the art of doing more, with less!
So, we can summarize that a scalable enterprise is one that manages to increase its productivity, reach, and revenue without increasing expenses. In most cases, scalability is achieved due to good networks of relationships and good management decisions.
In addition, it is worth remembering that a scalable business also goes through an optimization phase, which is the concept focused on streamlining the operation of a company, examining expenses, cutting waste, and eliminating idleness.
Thus, optimization ends up being an inevitable step toward achieving scalability. After all, this is what this concept is all about: achieving maximum efficiency, increasing customers, sales, projects, and the like, without significantly expanding operating expenses.
How to scale your business?
To make these steps easier to understand, we’ve placed the guidelines in an orderly fashion, suggesting how each of these events tends to play out in your business. Look!
1. Planning
Goals require clear direction! Therefore, you need to develop a growth plan for your company in which you can point out the estimated growth rate and the steps towards this achievement. Without a list of steps and practical measures, the business will only be relying on the randomness of the market to reach the desired goal. Therefore, planning must include:
- The ultimate goal in some clear metric, such as percentage growth in sales, projects, customers, and the like;
- Steps and practices that will be taken throughout the year to reach the goal;
- Correct decisions in hiring new employees;
- Resource management focused on optimization.
2. Monitoring
Here, we arrive at an important phase: the ability to monitor the performance of your team, identify idleness, correct errors, and reverse wrong decisions. To do so, you can turn to the famous KPI metrics, looking at resources:
- Temporal — task completion, waiting in line, during calls, during outings;
- Human— idle or overworked employees need for strategic hiring in overworked sectors;
- Financial — average ticket, default rate, collection period;
- operational — customer acquisition, lead conversion, and the like.
Overall, it is important that you understand the strategic value of monitoring the performance of your operation. After all, this is a practice that offers the opportunity to react in an intelligent and agile way, recognizing and correcting misguided directions, without incurring great losses.
3. Communication
This factor needs to be polished in two spheres: clientele and business. Being a large-scale operation means having the ability to withstand the high demand caused by the largest number of customers. Therefore, it is at this time that you should invest in good solutions for contacting your audience, prioritizing the most cost-effective alternatives at first.
In addition, you need to have good transit in the business environment. After all, having a solid network can guarantee good partnerships that reduce the costs of some outsourced services. A good relationship in this universe is essential for leveraged growth.
Finally, it is still worth remembering the importance of preparing financially for expansion. As you will notice at the end of the journey, the company will have reached a bottleneck, being limited to the current operating conditions. It is at this point that you will have to inject resources, increasing the workforce and physical space. With that, a new scaling cycle begins.
