Imagine you single-handedly run a lemonade stand.
You get 20 customers each day and have just the right amount of ingredients for a day’s commerce. Then, out of the blue, you get coverage from the New York Times.
Suddenly, there are customers queuing down the block. You run out of sugar within an hour and have to shut down, losing out on money. That happened because the lemonade stand wasn’t equipped to scale. There was no process for hiring, onboarding new lemonade makers, or projecting the amounts of sugar and lemons you’ll need. In short, there were no processes. And no processes = no scalability.
When you’re just getting started, you have the room to do things that don’t scale. These things act as the spark to ignite the rocket fuel that launches your business, but you can’t do them forever.
For example, Y Combinator co-founder Paul Graham recounts how John and Patrick Collison got Stripe off the ground by doing things that they wouldn’t be able to keep doing when they got bigger.
“Founders ask “Will you try our beta?” and if the answer is yes, they say “Great, we’ll send you a link.” But the Collison brothers weren’t going to wait. When anyone agreed to try Stripe they’d say “Right then, give me your laptop” and set them up on the spot.”
Obviously, Stripe employees aren’t still acquiring users by turning up in person to install Stripe on laptops. Over time, they built scalable systems; systems that made the founders the world’s youngest self-made billionaires.
In this article, I’m going to go through advice on scaling your business which will help you keep increase revenue without letting your company go off the rails.
If you’ve ever had to scrape around the depths of a filing cabinet for a document, lost a client’s details, or found yourself being bombarded with questions on how exactly to do a task, then you know the pains of a business that isn’t equipped to scale.
A good friend of mine who works in real estate was telling me about how their database for new properties is a literal whiteboard that gets wiped off regularly (and if the agents don’t remember all the details, that’s their fault). When I worked in the same sort of job, my CRM was a mix between tattered post-it notes and a huge disorganized Excel sheet that my boss needed me to email whenever there were updates.
With these kinds of ‘systems’ are in place, it’s no wonder businesses have trouble scaling. If, like a worrying percentage of businesses) you’re running your business mostly over email or relying on paper and your flawed memory, it’s time to stop and seriously think about scalability.
Why you need to focus on scalability now
After the initial buzz, the first 100 customers, and launch press coverage, every company hits its “hot coals”. How companies choose to navigate these treacherous times decide whether or not they’ll end up in the C part of the below graph:
<img src="http://cdn.business2community.com/wp-content/uploads/2017/06/sales-hacker-series-la-create-predictable-scalable-revenue-aaron-ross-4-638.jpg" alt="" Go to the full article.
Source:: Business 2 Community