Business can be compare to a living organism. It has its own stages of development, turning points, ups and downs. The essence of any business is constant, systematic development, growth and movement from point A to point B.
At a certain point, a successful business reaches a threshold point. The company is thriving, the owner is making a profit. But nevertheless, it becomes clear that further growth and financial development are simply impossible without qualitative or quantitative changes in the business structure itself. At this point, managers think about scaling or expanding their business, which can either bring significant results and increase existing profits several times over, or fail and significantly undermine the company’s position in the market.
In this article, we will examine in detail what business scaling is, how to determine when it is possible to expand a company, and what stages of development should be followd. We will examine what business strategies exist, popular methods of scaling, and also learn about the main dangers associated with the process of company expansion.
What is business scaling?
Business scaling is the reworking of the company argentina phone number list structure (or adding new elements to it) in order to adapt it to a new, increasing workload.
Business development implies optimization of all internal processes, cost reduction, profit increase, as well as quantitative growth of infrastructure points (factories, stores, branches, franchise points, etc.). In simple terms, scaling is a natural qualitative or quantitative expansion of business.
At the same time, not all beginning entrepreneurs understand
when exactly it is worth starting to scale a business. Most often, there are 2 main reasons for expansion.
1. Stable profit. Good financial performance of the jeff berg ceo enterprise is a key sign that it is time to expand. If after closing all expenses, paying taxes and other costs there is still money left, then it is necessary to invest it in the development of philippines numbers your business. The main thing is that the net profit is sufficient and comes in steadily for 6 months or more.
As a result, the flow of visitors will significantly decrease, since customers will know in advance that the desired products may not be available. Revenues will significantly decrease. In this case, scaling is not a whim, but a necessity for the survival of the business.
