How to Build a Scalable Business

There’s a lot of talk in the startup and corporate worlds about “scalability,” but what does that truly mean and how is it achieved?

It’s a theoretically simple concept that means a business is able to grow its revenue, with incremental costs that stay relatively minimal. It may be simple, but it requires work to make it happen.

When a business is truly scalable, it means they have a strong business model that can successfully grow and expand, including into new locations and markets.

So, regardless of where you’re currently at with your organization, how can you work toward the objective of scalability and ultimately growth and increasing revenue?

Choose the Right Software

Businesses small and large tend to underestimate the importance of having the right software in place. It’s not just important for productivity, but also to ensure that you have the necessary framework in place for scalability purposes.

One example of this is your expense reporting software. When you’re choosing a platform, you want to look for options that will allow for the technology to grow with the business.

If you already have those automated and technology-based solutions in place, there will be fewer obstacles as you work toward more sustainable growth.

Reduce Redundancies

In many ways, the objective of reducing redundancies goes hand-in-hand with choosing the right software because one of the best ways to trim the fat in any organization is by selecting and implementing the right technology.

If your business has redundancies anywhere, whether it be the finance department or the manufacturing process, scalability isn’t likely to be possible.

When you find ways to integrate automation into your business in smart ways, then growth doesn’t require additional investments in human capital as an example.

You should always be searching for solutions that allow for revenue growth without significant financial investments, and automation is absolutely one of the best ways to do this.

If you’re relying solely on human capital to drive growth, your costs are going to continue rising as you try to expand your revenue.

Hire For the Future

Scalability isn’t entirely dependent on technology, software, and automation.

You will still need people to help you drive revenue growth, but you need the right people.

From day one, businesses that are eyeing scalability should be hiring for the company they want, even if they’re not there yet.

According to, if you are filling your company with friends or unqualified workers and not looking at specific areas of expertise, your business is quickly going to outgrow those people.

Finally, business leaders who are focused on scalability should always be thinking about what their business would look like to a buyer. You may not be planning to sell anytime soon, but if you’re thinking about your business from that perspective, it will help highlight strengths and weaknesses that need to be addressed.

If you’re taking this perspective, then you’re always looking at your business strategy, and your underlying framework and those are important aspects of scalability. If your strategy and your foundation are strong, then you’re better equipped to successfully scale the business.