Do you have big dreams for your start-up? Of course you do – otherwise you wouldn’t be here, right?
If your business goals stretch to a national or international market, you’ll need to plan ahead from the beginning.
Here are a few things to consider when planning for scalability in your small business:
Is my idea scalable?
Scalability refers to the ability or potential of a product, service, or process to be grown in such a way that it increases revenue with minimal incremental cost. This means different things for different industries, and you’ll want to do your research on pricing options you have to grow your business.
Is my business model attractive to investors?
Investors like large markets, high margins, and low operational costs. If your business has high overhead associated with delivering services or a product, it’ll be difficult to scale and difficult to sell to an investor.
What can I outsource without losing my core business values?
While doing everything internally may be ideal, it’s not always the most cost-effective option. Take a look at your processes and see what you can delegate to an outside company without compromising your intellectual property.
What can I automate?
Technology is your friend when it comes to scalability. Do a bit of research in your industry to determine what software programs or apps would make a good fit to help you streamline your processes.
Are there franchise possibilities in my business model?
In the beginning, you won’t be able to realistically identify exactly how franchising your business will work out. As an entrepreneur, part of your job is to establish your company culture, and documenting your business model as it exists in the ‘real world’. Once you have that set, you can start replicating that proven model into additional franchise opportunities. What you can do now is build a model that is easily replicated.
Whether you’re a service-based or product-based business, you’ll want to make sure that your business approach is open to movement and adaptability. You’ll need to find new markets for your business or product and unique marketing angles. You’ll also need to be open to learning new technology and processes to streamline your business model.
Not For Everyone
Your “big dreams” for your business may lie more in the local market, and that’s okay! Businesses that are small by design, and choose to stay there, have a powerful impact in their communities. However, if you’re looking beyond state borders for your business growth, consider these items when making your business plan – and set yourself up for success early in the life of your journey!