Experts often point out that in order to grow your business, you must be able to scale effectively. But what exactly is scalability?
In laymen’s terms, scalability in business implies that the underlying model offers the potential for economic growth within the company. Scaling your business operations is the process of managing and eliminating the issues associated with fast growth. Being ready to scale means you have a proven product, a proven business model, and you are about to expand to new markets.
While there is plenty of advice toward the strategy of scaling your business, the execution is where challenges are commonly encountered. Here are six tips to streamlining your business for scalability.
Start with operational infrastructure. Put the basic elements in place, like an organizational chart, clear reporting lines and well-defined channels of communication.
Build the right team. Develop a plan to assess future needs while evaluating functions and productivity. Build a strong team that can run the scaled business without previous executives, moving it toward organizational processes and cross-functional teams.
Empower and delegate. A new org chart doesn’t mean much if founders and executives don’t empower and delegate to new leaders. Establish policies, disciplines, and standard protocols that allow people to do their jobs.
Outsource what is non-strategic. Scaling requires optimizing your leverage by utilizing outside resources for areas outside of your core competencies. Growing internal expertise in every area is slow and expensive.
Passing the knowledge. At some point, effective scaling involves writing down how things are best done, no matter how cool and hip your company is. It isn’t necessary for new employees to waste time reinventing what your company has already figured out.
Audit your business model. Build a strategy and plan that is focused on continuous innovation and solutions. Be clear on your business model and find new ways to test and define your success metrics.