A scalable business model has the organizational structure and resources a small business needs to maintain or improve its level of performance when operational demands increase. Here are the four common areas that require adjustments to create a scalable business model.
Establish Standard Operating Procedures (SOP)
It’s essential to have a how-to-guide for completing business tasks. Most small business owners recognize they need SOP to grow. The problem is making the time to do it or even wanting to do it. I admit, I’m one of those small business owners, therefore I outsourced this task to a virtual assistant.
A small business isn’t positioned for growth until SOPs are in place. The SOP becomes the foundation your business operations are built on and are required to identify the systems that are needed as the business grows. You can then eliminate redundancies prior to implementing automation which is the next area that needs some attention. Click here for five tips to help you start documenting your processes.
Invest in Automation
Gone are the times when expansion means hiring another person which increases operational expenses. Before hiring direct or outsourcing, you should consider investing in automation. This costs less than paying a person AND there is less room for error and delay. Investing in software will require time and money on the front end, but it will save you time and money on the back end. The reward, you will see your revenue increasing. Click here for four key tasks you can automate so you can focus on more important business building activities.
Identify Needs and Outsource
Once you have SOP and you’ve started automating repetitive tasks it will be a lot easier to identify the remaining gaps in your organizational structure. An organizational chart is the most effective way to do this. This visual aid needs to identify what your small business should be, which probably isn’t the way it is currently operating. You can then match your SOP to the positions on your org chart and create job descriptions. Now you can begin building an effective virtual team based on the gaps in your organizational structure. It really will become an accountability chart that will increase your overall efficiency and help you identify tasks you SHOULD NOT be completing yourself but should be delegating to your team.
Creating a scalable business model will require some adjustments. You will also need to invest some time but it will be well worth the investment! This will position your small business for sustainable growth and you will be able to operate like a big business, even if you aren’t quite there yet. Once you get your infrastructure in place to address that growth you want ,you will be able to make adjustments quickly without compromising quality and losing customers. So are you ready for growth and success?
Do you need figuring out which process you should start with? Click here to schedule a free 15 minute Process Improvement Consultation and we can talk about it.
If you’ve gone through this process to prepare your small business for growth, I’d love to hear what you did. Please share what you did in the comments below! Feel free to share this article with other savvy business owners who want to grow their business too!