Every business model has to answer an important question: How will it scale up? This question has to be answered continuously while the company grows, because, what might be needed to scale up when you are a one-year-old company could be very different from what might be needed when you are a three-year-old company. In most cases, one or more points given below are needed to scale up your business. It will be beneficial for you to identify very early which of them applies to your business. The definition of scaling business in this context is selling more and making more profits.
- Marketing: You have to market yourself to a greater extent to get more consumers and maybe you will have to keep doing that.
- Production: You will have to produce more or cater to more consumers with your service. There might be a demand; you only have to find a way to fulfill it.
- Building up the product: You could be saturated with what you have as your product/ service and need to build more to attract new customers.
- Up sell to existing customers: Your route to scale is by up selling to the same customers. This could be either because of lack or slow increase of new customers.
- Reducing costs: You are able to get more customers and sell more, but it could be at the risk of incurring some losses for which you would need to cut costs. It is also possible that you will be able to reduce cost per sale only by increasing sales.
- Increasing the price: You can make more money or profits only by increasing your price.
How you will scale can give a lot of insight into how much time you will take, how much money you will need, how long you can afford to continue incurring losses, how much more you need to build and so on. Learn more about selecting and building a business only at the University Canada West, one of the best-known universities in Canada, offering various business and management related programs.
