What is scalability?
POSTED ON September 21, 2023
BY Mallory Sage

Is your business scalable? As a small business owner, you’ve probably heard a question similar to this before. But what does it mean to be “scalable” and why is scalability important?

What Is “Scalability”

Scalability is the ability for your business to scale. It’s the question of whether or not your business, business plan, and systems are able to continue working as your business grows. Basically, if your business were to double, triple, or quadruple in market demand, would your current infrastructure be able to support the added pressure? Or would your processes crumble under the additional demand?

Why Should Your Business Be “Scalable”

Planning your business with the ability to scale isn’t a one-size-fits-all scenario. It’s a very personal decision based on what YOU want to do with your business.

As an entrepreneur, your goal might not be to grow your business beyond it’s current size. If you have developed your business and have loyal, consistent clients, and have no desire to expand beyond that point, then planning your business to scale isn’t necessary. Instead, entrepreneurs at this level may choose to focus on improving the client or customer experience to maintain their audience. They may also develop processes to make their business more self-sufficient to free up their time for other projects or priorities.

But if you’re an entrepreneur excited about expansion, building your business to scale is incredibly important. If you make decisions based on the right now with no planning for the future, your business may crumble or be in a constant state of catch-up as it grows. If you begin your business with the intention of growing, taking the time to invest in processes, procedures, and technology that will grow with you saves headaches in the future.

Benefits of Scalability

Developing exact processes and systems opens up the possibility of working with more people. Processes ease the work for employees, clients, and vendors because there is a set standard for them to follow while working with you. This creates a level of efficiency and predictability that appeals to clients and vendors because of the ease of the experience. The predictability for you and your team is also a bonus. It reduces the time spent problem-solving and increases efficiency and accuracy in your service.

Growing Pains

Some business owners, especially those who previously provided a high level of concierge service before moving to a scalable model, are apprehensive about making these changes. Instinctively, they believe that customers or vendors may feel like scalable processes are a downgrade from the service they were receiving before. It leaves less room for individual accommodations.

But in exchange, clients and vendors receive stability. The most important thing to most clients and vendors is receiving efficient, timely service or payment. And that’s exactly what stable, scalable processes deliver.

If you’re interested in learning how Encurio can help you update your processes or technology to help your business scale, set a meeting with us.