Scalability is the growth capacity of a company. Or, to put it more precisely, a scalable business can adapt to different scenarios, increased workloads, evolution, change, or crisis without compromising performance or losing revenue.
Can a low-income entity propose a growth scenario? In the case of a startup, even without income, the question becomes more critical.
The answer for a company of any size or a startup is the same: if the entity is scalable, yes.
But not all companies are prepared to face this challenge. Some organizations lack the right systems, people or mindset. Trying to grow these types of entities is like trying to inflate a tractor tire with a bicycle pump.
There are at least 7 considerations or elements to take into account in order to face a growth scenario.
1.- Ensure the basics
Before climbing, make sure the foundations are safe and adequate. According to a StartupGenom study of over 3.200 startups, 74% fail to tackle a premature growth attempt.
Some aspects to take into account are:
- That the line of products/services adapt to the market. Incremental improvements can be made through iterations based on user feedback and data.
- Discover and listen to your main representative users.
- Use the marketing channels with the highest ROI and scaling potential first with smaller budgets.
- Have the resources to scale. You can't worry about profitability while scaling, while avoiding running out of cash.
2.- Automation and simplification of the whole
Mentioning automation may seem to refer to technology-based topics. But it affects processes, operations, methodologies, distribution models, etc. If the investment of time in "configuration" of the business, then the path is the correct one. Some examples are:
- Configuration of storage and organization in the cloud.
- Configuration of training processes for new hires.
- Marketing automation setup.
- Payroll setup to streamline the process.
- Bill Payment Settings.
Despite the investment of time to start an automation, this activity quickly pays for itself in addition to generating agility and scalability: access data faster, contract faster, market better, pay more easily and optimize operations.
3.- Boost marketing
How can a company scale if no one knows about it? Focusing on marketing and image facilitates scalability.
Not all forms of marketing are scalable. According to Forbes, "direct marketing is...not scalable" and "word of mouth doesn't scale."
Content marketing, on the other hand, is one of the most scalable growth methods. Content marketing has everlasting value and viral potential, making it the method of choice for most new businesses.
4.- Outsource what is not essential
For many large corporations, the goal is to internalize. They have graphic designers, developers, conversion optimizers, SEOs, CPAs, lawyers, and even in-house janitors.
New business models can't afford those structures, and if you want to be strong enough to grow, you'll need to outsource all non-core roles.
The graphic design firm does not need a legal department. SEO doesn't require a full-time PowerPoint designer.
Outsourcing ensures being able to choose the best professionals for each function, and competition between professionals makes it easier to keep them constantly updated in terms of capabilities and results. On the other hand, it facilitates scalability as it can accompany growth with new external resources more quickly.
The entity then only needs to focus on what distinguishes it in the market.
5.- Attention to social networks.
Currently, every organization is facing the public at a global level. Everything that happens on social networks, whether it comes from marketing departments or from freely expressing customers, is scrutinized and distributed globally.
From the beginning you have to carefully monitor your presence on social networks. Whether it is an existing or new entity, success cannot be based on traditional public relations and social media.
Scalability is as much about surviving as it is about growing. A fracaso of online public relations, limits the chances of survival and scalability.
6.- Differentiate between the entity and the founders
To be truly scalable, the entity should be able to function completely without the original founders of it. The best practice is to share the responsibility of your own or under the supervision of another person to the rest of the team, assisting and empowering them.
Another option is to take deliberate absences so that you can force the organization and staff to be independent. It's encouraging to come back from those weeks off and find that the business is independently thriving.
It is the way to empirically demonstrate to people that the business is not linked to the presence of the founders. The business prospers and allows to build something new.
7.- Hire the right people (and only the right ones)
A company is scale only when it has the right people.
For this, you must hire only the appropriate profiles and the rest use the subcontracting mentioned above.
Some of the key characteristics of a team member are:
- It can do what a program can't. If the function of a person is something that a machine can do, then human resources are being wasted. It is necessary to automate and simplify to maximize the performance of people.
- They produce good ideas. You can't put a price on the value of an idea. A single shining moment on the part of an employee is worth more than the costs associated with the employee.
- They have more than one ability. One person may have to perform several functions. People with a multifaceted skill set or skills that can be transferred from one task to another are required.
Final conclusions
Scalability is a way of thinking. You need to have the right systems and processes, people and plans.
But you also need to think big to become big. Having a scalable business means the freedom to generate new ideas, gain market share, and have fun in the process. With the right attitude and rigor, scalability is much easier.
What have you done or started your organization to scale its activity?
