Scale-Up does not tend to feature early with CEOs, as they tend to focus on the short-term building blocks of revenues and sales growth without sufficient planning for the medium or long term. Paying attention to day-to-day sales, cash-flow and profitability is important but does little to fulfil the objective of scaling a business. Scalability and scaling up for a business require the application of a complementary set of abilities to the everyday ones and a different perspective or focus on an expanded range of key success factors.
Scale-Up
Scaling a business has different meanings to different people. Talking about scaling is an indication that your business has reached a certain stage in its life cycle, and that your vision to take the business to the next level has begun. The process of building a big business is quite challenging as it involves a lot of factors.
Scaling means adding sales but with the additional resources needed to meet these increased sales, being at a lower rate than the historic business model. This may seem counter intuitive, but it is not. It presumes that it is possible to add sales at a lower marginal cost of sales by intensifying the use of resources as the sales rise.
This change becomes a series of cycles of re-creation and maturity as the business grows from a business to a corporation to a Plc whilst avoiding failing or stagnation. This may seem counter intuitive, but it is not. It presumes that if there are different needs at each stage and the business needs to transition through each stage making the changes necessary for further growth.
The Process of Scale-Up
The process of scale-up is a process to work through the changes required to succeed in the scale-up process.
Being one of the most important aspects of business, scaling up has a huge impact on the growth and success. It is easier said than done as there are a lot of factors involved, including financials, human resources, management, risk and so on.
When the business applies a strategically driven functional model based on a clear allocation of responsibilities which fits roles to a transparently consistent structure, this creates a flexible framework
that supports scalability to almost any level of business growth. It also means that the business has a complete understanding of all the areas of responsibility that need to be covered for the effective
management of an enterprise, instead of finding itself limited by what appear to be the areas of priority at any point in time.
This aspect of building a scalable business also entails the creation of clear process, policy, and procedure mapping for every aspect of the business, to create a blueprint for its operation.
If you are thinking of scaling up your business, it will take more than money to help you do that. Anthony Pollock & Co provides unique strategies designed for scale-up success.
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