Scalable business: what is it and why have one?
All professionals who dream, plan and start implementing their projects, cannot ignore the characteristics of a scalable business.
It simply consists of the “best of all worlds” for the survival of a company, as it is about reducing expenses with increasing net sales.
In other words, this strategy allows you to earn money without having to spend (or spend the minimum) on buying products or services.
Want a practical example?
Platforms, applications or online courses that are made available to an unlimited audience and do not require maintenance.
Your job will be to create the online course, for example, and disseminate it on the internet.
The more people you buy, the more you earn.
Among the best known options are Netflix, Airbnb and Uber, all with online performances, but here also include franchises, which despite being physically scalable for brand owners.
Did you like the idea and want to know more about scalable business?
Then read the information below!
When is a business considered scalable?
A business is considered scalable when:
1 — It is repeated
If the business model can be expanded and produces recurring revenue, then you are facing a scalable business.
2 — Has a lot of value
Another characteristic of the scalable business is offering a product or service of great value, scarce in the market and that meets the needs of the public.
3 — It is teachable
When the production process can be taught, then you are also facing a scalable business.
4 — It is standardized
In the scalable business there is a standardization of the service offered.
The course platform, for example, is the same for all customers.
It is enough for any of them to purchase the training to receive exactly the same tool.
Can you have more than one option?
Yes you can.
Wix, for example, a website creation platform, has several templates for you to choose which one to create your page on.
Even so, it is considered scalable as these options are made available to the entire public on an unlimited basis.
5 — Enables increased sales
In the scalable business you can sell your service online worldwide.
With a physical product, you will need time to create the pieces or purchase the items (in the case of resale).
Besides, the logistics itself can be a hindrance considering that you will need manpower to carry out deliveries.
Not to mention the expenses involved in these situations.
What are the advantages of scalable business?
There are countless advantages of scalable business, want to see?
1 — High turnover and low expenditure
This is the main benefit of the scalable business.
You don’t need to have a lot of money to deploy a platform or an application, for example, and you also don’t need to spend on inputs or maintenance.
And the most interesting is the possibility of high revenue with the provision of a very valuable service that can be purchased by as many people as needed.
That’s right, most of the time, there are no limits on scalability.
2 — Easy expansion
The scalable business expansion can be national or even worldwide, as it allows you to reach people anywhere in the world.
Consider that the premise is to offer a service with agile and efficient production, usually online, but also scarce, attracting a large number of people and a very loyal clientele.
3 — Continuous growth
In the scalable business you can sell to a thousand people this month and to a million next month.
Everything will depend on using the right marketing and sales strategies.
Did you like to know a little more about the scalable business?
If you haven’t set up yours yet or you own a company with a physical structure that gives you little money, it’s good to start thinking about this extremely promising alternative!
