As any business owner worth their salt will testify, scaling isn’t as easy as some would have you believe.
There are umpteen companies out there that have tried and failed due to the complexities associated with expanding a business.
Of course, plenty of those have gotten it right, but the difference between the two tends to come down to one key factor: the model.
We’ve penned today’s guide to help you stay on the right side of the divide. Below, we’ll now take a look at some of the key steps to developing a scalable business model.
Start with the numbers
When developing a scalable business model, the first step is to start with the numbers. You need to understand the potential for growth in your industry and the anticipated costs associated with expansion.
You also need to make sure that the model you develop is cost-effective and considers the costs of additional staff, office space and any other overheads associated with expansion.
Remember that you also need to factor in the costs of any professional indemnity insurance and any other paperwork you need to cover.
Familiarise yourself with the competition
Next, you need to familiarise yourself with the competition. You need to understand what they are doing, how they are doing it, and what they are doing that you’re not. You also need to ensure that you have the right people to help you compete.
These could be in-house staff, or they could be external contractors. Either way, you need to ensure that you have the right team to help you succeed.
Come up with a plan
Once you have all of the above in place, it’s time to devise a plan. This is undoubtedly a case of “easier said than done,” and there are no easy answers that are universal across all industries.
Nevertheless, to get started, you should look at what you currently offer that is working and then devise a strategy for setting up a new, scaled version of it.
You need to be precise here and consider the potential for growth and expansion. You also need to consider the potential for growth in other markets and how you can make the most of them.
Test and iterate
Finally, you need to test and iterate. This is where you need to put your plan into action and try it in the real world.
It’s important to remember that things won’t go perfectly the first time. You need to be confident to make changes and adjust the model accordingly.
This is the only way to ensure that you create a business model that is not only scalable but successful for the long term.