3 Characteristics of a Scalable Business
Scalability of a business has to do with the possibility of developing it to meet market demands, but without losing its competitive values.
This means that it has potential for expansion and can do so without major operational and financial problems, being able to adapt to changes.
The possibility of a business being scalable allows for growth without incurring high costs and with the same delivery of value, and is one of the characteristics that makes it sellable and attractive to investors.
In scalable businesses, there are three important characteristics: replicability, costs do not grow proportionately to sales, and delivery capacity.
Replicability
The processes and business model must have the possibility of being replicated, generating recurring revenue and without high costs, and can be implemented at any time. In this topic, the fact that the processes are "teachable" makes this characteristic even more flexible.
Costs do not grow proportionately to sales
Selling more does not mean that a business is scalable, since scalability is characterized by growth in revenue, maintaining fixed costs.
Furthermore, there is a low cost of customer acquisition, one of the main points to be measured, especially for those who want rapid growth.
Delivery capacity
A business can only be scalable if its capacity to deliver products and services can meet emerging demand, with the same added value. In this topic, automation and standardization of processes optimizes its production capacity, and can be easily replicated.