You hear the word “scale” talked about a lot in the business world. And to be honest it doesn’t matter how big or small your business is, you can always scale. There is always room for it, but what does scaling look like practically?
Let’s start with defining what scaling is. Basically, it is to increase revenue at a faster rate than what your company is costing you.
But how do you do that? You start by looking at your business and figuring out if there are any holes in your operations that can be streamlined by using new technologies. If you can increase your revenue and raise your operational demands while maintaining the same costs or even lowering those costs, then hurray! You were just able to scale your business successfully!
Here’s an example of growing versus scaling, if you want to look at it with a bit more real-life practicality.
Computer Systems Plus just received a $100,000 contract (what a dream right?). BUT, cause there’s always a but. They need to hire a couple more people and their salaries are going to be about $50,000 each. Sure, they just added to their revenue, but unfortunately, they are breaking even when it comes to terms of profit margins. Computer Systems Plus is growing, but they are definitely not scaling.
Now, if they received a $100,000 contract, took that money and invested $5,000 in a new automated local backup and protection system, and therefore only having to hire one employee at $50,000. They have just saved $45,000 and they are scaling efficiently.
This goes to show that just because you are growing does not mean you are scaling. Sure, scaling a business is related to the growth of a business, but they are not the same. When you scale you are finding new ways to grow more efficiently and those gains exceed your losses. Growing a business refers to increasing your revenue due to a new business procurement, hiring new team members, and expanding your office space….I think you get the idea. Growing is all about EVEN losses and gains. However, do need both in order to have a successful business.
So how are you going to succeed this year? How are you going to scale your business for optimal growth? Here is a fun little fact, 20% of businesses fail in their first year and 80% of them survive because…. drumroll, please…SCALING CORRECTLY!
At Computer System Plus we actually want your business to succeed. So, what are some ways that you can scale the best for your business and how can we help you do that?
Computer Systems Plus is a full-service IT management company. We manage and supply the service and support that runs your business. That means you don’t have to worry about focusing on fixing an IT problem, we do that for you. Instead of hiring one person to focus on data protection and backup information, another person looking at network security, someone else coming in and doing your wiring. Why not just call Computer Systems Plus to do it all? We take away the hassle and frustration of IT management from you and your business so you can focus on scaling correctly and moving forward in your business endeavors. You don’t have to hire multiply people for the many jobs that we can do all in one.
Scaling a business is all about efficiency. But remember, you must focus on your mindset and create a strategy that requires flexibility and problem solving so that you can overcome any obstacle. Are you ready to start scaling?