What does a scalable business mean?
The same as every business, it starts small then it grows into a bigger entity. However, that doesn’t happen overnight and not all businesses are scalable. So, what is a scalable business? When a business is still small, but has a great product and business model with great potentials to grow and scale up very fast, with as low incremental costs as possible. For example, making a software product will cost you money, time, and effort. However, making copies of it will cost you as low as zero dollars. This is a great example of a scalable business since it has all the factors of a scalable business which are
- The business has to start small.
- The cost of making another copy must get lower over time (marginal costs drop over time).
- Scalable idea and business model.
There are a lot of tips for having a scalable business but these two are the most important due to the fact that investors will not invest in a service business that is based on cloning experts because they are expensive, such as marketing.
Important note: the business will not be scalable if you rush to grow, you have to be patient and do things are the right time and at your own pace. We all want our business to grow tremendously overnight, and we want to reach our objective as fast as possible, but the beauty of having a scalable business is that you get to control and direct your business. You get the chance to learn what works and what does not regarding your business and you have the time to attract investors with your scalable mindset and business, so your business might grow bigger than what you first anticipated.
In conclusion, in order for a business to really be scalable, it has to start small with a scalable idea and business which means have enough potential to grow in the market and attract investors and the expansions and revenue growth needs to increase the operation costs as low as possible.