By looking at the business world today, it is clear that businesses face stiff competition, which directly affects their growth and success. The high competition levels call for entrepreneurs and investors to be vigilant in running their businesses. Therefore, as a business owner, you have to look for all the ways possible to ensure the continued success of your business. In most cases, scaling is the best way to help your business achieve continuous growth and success. This guide offers a detailed look at everything you need to know about scaling your business in the right way.

What Is Scaling a Business

Scaling a business is generally associated with its growth. However, most people tend to use the terms scale a business and grow a business interchangeably, which is not correct.

Scaling a business or scalability means adding revenue at a faster rate than costs. Here, you generate revenue at an exponential rate while you only add resources at an incremental rate. Generally, the gains outweigh the losses or costs incurred in adding new resources.

On the other hand, to grow your business, you add your resources at the same rate at which you are adding your revenue. In this case, your gains and losses are at an even level. The resources you add equals the revenue you generate.

What Is the Importance of Scaling a Business

Scalability is important in that it improves the efficiency, quality, competitiveness, and reputation of a business. However, you should exercise extra caution when it comes to scaling. It can either make-or-break your business. For example, scaling your business too quickly or recklessly can create a load of problems that can be hard to undo. On the other hand, if you are too slow, you may miss out on viable business opportunities.

Generally, scaling revolves around two primary issues, capability, and capacity. Therefore, before starting on scaling, ask yourself whether your business is capable of growth. Is it capable enough to grow? Does it have the capacity to accommodate the projected growth? With the answers to these questions in mind, it will be easier to scale your business.

Therefore, scaling is one of the most sensitive phases of a business and you should approach it with extra care. Below are a few tips on how to scale your business in the right way.

How to Scale a Business

Are you looking to scale your business? Congratulations on the bold step. Here are a few guiding tips you may adopt:

Evaluate and Plan

Scaling, just like any other crucial step in business, requires proper planning. Therefore, it is advisable first to evaluate the current state of your business to see if you are ready for growth. Evaluation helps you plan on the resources you need as well as additional changes you need to make within your business to accommodate the anticipated growth. For example, try planning based on everything you need to do to increase sales and to accommodate the projected increase. You may plan on adding more members to your team, additional capital injection, or boosting your technology. Try to think critically and be more realistic in your plans. Additionally, come up with an achievable plan.

Find Resources

Based on your evaluation and scaling plan, you already know what you need for a successful transition. Be it hiring new staff, adding more machinery and equipment, or doing technological upgrades, all these require resources. Therefore, you should have a stable source of funds to cater to these arising needs. You may require to dig deeper into your pockets or borrow money from banks or other money lending institutions.

Secure Your Sales

Scaling your business always forecasts on increased sales. Therefore, sales being among the main income-generating activities for your business, you should have a strong structure in place to secure them. Look and analyse all aspects related to sales. For example;
• A good marketing plan to see through the projected sales
• Sufficient lead flow to help achieve the desired number of sales leads
• An efficient system to manage the leads
• Enough sales representatives to help follow up on the leads
• An efficient billing system

Build a Strong Team

It is clear that scaling is a sensitive phase of a business and as a business owner, you wouldn’t risk leaving it in the hands of an unqualified team. Therefore, it is advisable to build a strong, determined team with diverse skills, talents, and levels of expertise. The team should also understand the goals of your business and be willing to strive and achieve them on time without comprising the quality of your products and services. You may also consider organising seminars and workshops to equip your team with the necessary skills and knowledge for a smooth and successful scaling phase.

Invest in Technology

The use of technology dominates the present-day world and it has proved to be an easier and less expensive way to scale your business. By investing wisely in technology, you can enjoy huge economies of scale. You save more on time and labour costs as you boost your revenue. There are numerous ways in which you can invest in technology to help scale your business. They include;
• Online marketing: Online marketing seems to dominate the business world today with most people selling their products and services online. Therefore, you can consider investing in online marketing to widen your consumer base and generate more revenue. You can do this through social media marketing, email marketing, affiliate marketing, and SEO.

• Accounting and finance software: You can also invest in up-to-date accounting technology to improve accuracy in your finance sector. It also helps in the timely generation of financial reports for use in decision making and tracking of progress.

• Automate process: Automation helps reduce a lot of manual work within your business. It causes an increase in machine work making business processes easier, faster, and more accurate. Additionally, automation reduces on labours costs.

Identify Your Competitive Edge

As a business owner, you should identify what makes your products and services stand out against those of your competitors. You need to know what makes your business different in the eyes of the clients. Identifying your competitive edge helps in knowing what you need to improve or change when scaling your business. Having a strong competitive advantage may help secure and maintain a place in the market, which in turn boosts your sales and your income.

Business Development

The relationships you establish with other parties related to your business will help see you through a successful scaling phase. You can achieve business development through networking and collaborating with concerned parties such as sales partners, service providers, customers, and suppliers. Having engagements with these parties helps create a conducive environment for your business to thrive. Here you get to understand the needs of each party and can address them as they arise. With business development, scalability becomes easier to achieve.

Standardise and Streamline Operations

The processes in your business need to be standardised and streamlined for enhanced scalability. You should ensure there is an appropriate delegation of the repeatable processes for a simplified growth of your business. Delegating and streamlining your standard functions helps in creating a strong foundation for the long-term benefit of your business. It makes it easy for someone else who may take after you to understand and run your business.


Always remember that every successful business today was once a start-up and the start-up was once an idea in someone’s mind. All it takes is hard work, determination, and focus in helping grow your business and scale it to your desired levels. If you are looking to scale your business, adopt the tips above to help achieve scalability in the right way.