Achieving scalability in business is an ambitious goal, but with effective strategies it can become a reality. But what is scalability?
According to Resultados Digitais , “scalability is the ability of companies to perform well even with a greater workload, for example when sales increase. A scalable business is one that can maintain or even improve its results and efficiency, even with increasingly greater demands.”
In other words, it is the moment when your business can multiply its results using the same effort. We can take a sales operation as an example. If your sales team finds a way to increase sales closing while maintaining the same resources, it means that your business has managed to scale the sales process.
In this way, the business can increase efficiency and profits, generating increasingly better results. This also contributes to reducing the company's costs.
Endeavor also presents 3 requirements to consider the model of a scalable company :
It is teachable: the model allows you to teach the process to tunisia whatsapp data any employee, making the business more flexible;
It is valuable: it allows your business to differentiate itself from competitors and have a valuable product or service to offer to the market;
It is replicable: the possibility of replicating the process to generate recurring revenue also indicates that the business is scalable.
Thinking about specific indicators, some metrics that are directly impacted by scalability are related to Return on Investment (ROI), Customer Acquisition Cost (CAC), revenue and profitability.
But you need to be careful. Not all businesses have scalable potential, and that’s okay. Keep reading to understand the difference between scalability and business expansion.
Attention: scaling is different from expanding!
Scalability depends on the ability to replicate a process without increasing resource usage or team effort. However, some business models do not work this way, and this does not mean that they do not have opportunities for growth.
A good example is the production line of an industry that operates on the basis of manual labor. To increase production, it is necessary to invest in new employees, equipment and tools. In other words, it is not possible to scale while maintaining the same resources.
However, it is possible to find growth levers that allow the business to expand. Still using industry as an example, if one of the pieces of equipment used in production has a low cost compared to its financial return, it may be a good opportunity to expand that particular line by investing in more of the same equipment, which will increase production at a lower cost and bring a higher ROI.
In other words, if your business cannot scale, look for ways to expand it.