What Is A Scalable Business & Why Is So Crucial For Success?


You have a great business idea you feel passionate about. You know there is a need for its services and have done your market studies. You want to pull the trigger on getting it launched the right way. But have you considered one crucial factor to its success: Is it a scalable business?


We're going to dive deep into how you can know your business is scalable and why scalability is so essential for the longevity of your organization.


A scalable business or scalability is a business's ability to grow its revenue without increasing its expenses or resources. Growing your revenue without growing your costs will determine much of its success and your organization's future to thrive. Speaking of growth, aren't scaling and growing a business the same? There are stark differences.

Scaling Vs. Growth

Growing your business is an amazing accomplishment but different from scaling your business. By definition, growth is adding to your revenue while at the same time adding to your resources. While growth is many companies' goals, scalability can be more lucrative and help you expand your business further.


Now that we've discussed what scalable business is and how it is crucial to success and varies from growth let's get into what a scalable business is. 

Investopedia says, "Scalability refers to the ability of an organization (or a system, such as a computer network) to perform well under an increased or expanding workload. A system that scales well will be able to maintain or increase its level of performance even as it is tested by greater and larger operational demands."


Considering the scalability of your business should be a focus when you're starting a business or even when you realize it's time to make changes in your current organization, like adding a product or service. Having a scalable business means a strong potential for growth and profitability. Growing your business without having to be stalled or held up due to resources can boost efficiency and help increase profits quicker.


Beyond being able to grow your profits without additional expenses, many benefits come from having a scalable business:

  • Your business will be able to handle and make it through periods of lulls in growth without having to cut back, lose employees or worry about staying in business.
  • Scalable companies are more likely to remain in business with scalability creating longevity.
  • Another benefit of having a scalable business is being able to remain a strong competitor in your industry. 


Some other benefits include adaptability by surviving economic changes and consistency by being prepared to remain through any obstacles that may present themselves. So, while the monetary gains are often the draw, they are just one of the benefits of having a scalable business.


Choose the Right Funding Strategy
It's no secret that having a solid funding strategy is a critical component of a successful business. Knowing your expenses and base is the smartest way to ensure your pricing for products and services makes sense for profitability and scalability. All your funding needs to make sense, from software to employees and every resource in between.

Hire Strategically

Make sure, when you're building your team, you are doing so in a way that makes sense. It's okay to start small with your team as long as efficiency remains. Look for employees with adaptable skills and candidates willing to learn and evolve with the company. Learning how to hire strategically will ensure you are spending within your means and allowing you to scale.

Invest in the Right Tech and Tools

Just as hiring is vital to overall costs, so are the resources you use. Remember, scalability means you don't have to spend more on resources when your profits grow. Finding software or tools that help execute your business or do your job efficiently without a huge price tag is essential. It's crucial in scalability to not have to upgrade your tools or tech each time your business grows, so do your research as a business owner and make sure whatever software or resources you invest in can withstand the volume your organization will need.

Embrace Strategic Planning

Strategic planning is a huge scalability piece because it sets you up for future success. Being able to plan, in a granular way, how you plan to reach your set goals will ensure they are achievable and that your taking the proper steps financially to meet them.


Ensuring your business is scalable ensures its success in the future. You will grow exponentially by growing profits without pouring additional funds into resources needed to run your business efficiently. If you're looking to start running your business instead of it running you, with expert advice on how to scale properly, it's time to make a shift. Learn more about The Shift Spot here.