Leap Into The Future With A Scalable Business Model
A strong product-brand association is not enough to determine a company’s success. Being prepared for the challenges of the future is equally important. The keyword is modularity. If, as an entrepreneur, you have developed a product or service that a particular market segment has been waiting for, you have laid the foundation stone of your company. Congratulations! Now the real work begins.
Table of Contents
What Does Scalability Mean?
Growth And Contraction
Scalability can be defined simply as a company’s ability to adapt to growth and, in a downturn, contraction. To explain it differently, a company is scalable when it can quickly adjust its internal capacity and production volume to meet the demand for its products or services.
How To Adapt And Take A Step Back
Let’s look at it this way: As the founder of a company, you are initially the driving force behind your company. You conceive the product and bring it to market. Also, you are your own best salesman. And even if you’re unsure how to approach the other aspects of the business, you focus on not stopping. However, you cannot continue to do everything by yourself.
This first chapter closes when your company begins to grow; thus comes the time to eliminate the errors and random successes and to establish a procedure that leads to significant results in the long run. At the same time, someone else must be able to work on this procedure, obtaining the same positive results while you gradually step back. Because the activity will have to continue even in your absence. Two Factors Of It:
- Predictability: You want to be able to predict your future results as accurately as possible.
- Repetitiveness: what you are doing well today, someone else will have to be able to repeat tomorrow.
Why Is Scalability So Important?
The Market Is Constantly Evolving
Not all economic sectors are stable. Depending on the segment in which you operate, it will not always be possible to predict your company’s performance, and it could happen that you suddenly need to downshift after a long period of economic stability.
Also, your business grows in stages. In the first phase, growth is organic: you enter a local market, bring interested people to your site, and you quickly get dozens of customers thanks to friends and family. Do you think the business is going well? And then suddenly, everything stops. The turnover does not increase. If you want to progress, it’s up to you to get growth to resume. Of course, this carries risks.
- A lead source can dry up—a nightmare for any marketer.
- You want to hire new salespeople but can’t find the right ones.
- Your support team is expanding, and you don’t have a document attesting to your procedure.
Some risks you can take, others you can avoid. That’s why it’s best to be prepared.
Good Practices For SMEs
Reduced Margin Of Error
Setting up a robust, flexible, and scalable organization is a challenge for any business, and indeed for small and medium-sized companies that usually don’t have much leeway. Ask yourself this question: What if the pressure on my company increases? Can I still satisfy market demand without affecting my turnover, the satisfaction of my customers, or the quality of my products?
Scalability goes far beyond sales. You must work hard to achieve it at every level of your organization: sales, marketing, human resources, IT support, customer service, and more. Never forget that the interests of these processes are interconnected: marketing leads must be followed up by salespeople, your customer service depends strictly on your IT department, and so on. As entrepreneurs, don’t limit yourself to the here and now. A scalable model supports the entrepreneurial effort and prepares you for future changes (for better or for worse).
This is why making strategic choices regarding the organization is essential from the start. How do I do all this, and what should I pay attention to? The subject is complex and embraces various components of the corporate organization. In the meantime, we offer you an introduction to reasoned management of leads: an ebook dedicated to all small entrepreneurs who are unsure how to sell online and what technical tools are available to automate the qualification and sales process.