The opinions expressed by Entrepreneur authors are their very own.
Over the past two a long time, the business community has seen phenomenal growth in the variety of billion-dollar startups. More than 2,800 firms worldwide have achieved valuations of $1 billion or more, and the pace is accelerating.
The addition of a whole bunch of latest unicorns clearly shows that something is happening in the startup world. As CEO of Flowwow, I know how vital it is to develop quickly and effectively. But what does it take to grow without losing quality? The answer is operational scalability.
Operational scalability is particularly helpful for businesses with standardized processes and large transaction volumes, resembling fast food chains, automotive rental firms, and online marketplaces. Based on my years of experience in the gifting marketplace, here are six key activities to consider when scaling your business.
1. Promote transparency
High degree organizations transparency reports profit margins 21% higher than average. By sharing information openly and truthfully, you may build trust, increase worker engagement, and motivate your team to make decisions on their very own.
Consider the case of Asana. They prioritize transparency by publishing detailed notes on topics discussed at board meetings and obstacles at the senior management level. This openness allows employees to align their work with the company’s goals and engage their talents to achieve higher results and feel satisfied.
2. Automate routine tasks
To scale effectively, automating repetitive tasks is key. By reducing manual work, you may free your team to focus on strategic tasks, increasing productivity and enabling efficient scaling.
At Flowwow, we saw the advantages of automation firsthand when we developed our own CRM tailored to our specific needs. This enabled us to automate order intake, create flexible support templates, and even introduce an onboarding bot based on artificial intelligence. In this fashion, we scaled sustainably while maintaining high quality customer support and keeping our team comfortable with their workflow.
3. Invest in people
Your team is your biggest asset. A thriving work environment is paramount to attracting and retaining top talent. By fostering a culture of growth and empowerment, you invest in challenge-seekers, increasing morale and supporting innovation.
Consider Microsoft, whose CEO Satya Nadella promotes a “growth mindset” culture that prioritizes continuous learning and development. They are currently investing in comprehensive training programs and flexible work organization, focusing on the mental well-being of employees.
4. Balance data with intuition
While data is key, it’s equally vital to trust your gut. I remember discussing introducing a client application with almost no solid data to support the idea; it was just our intuition. And it worked: today the app handles most of our orders.
Think Tesla. Elon Musk’s decision to pioneer electric and autonomous vehicles was as much a leap of religion because it was a well-thought-out move. By trusting his intuition about the way forward for transportation, he positions Tesla as a global leader in sustainable technologies.
5. Build a solid technology infrastructure
A robust technical foundation is essential when scaling a business, especially during peak periods. Investing in reliable systems and preparing for peak demand can ensure smooth operations and avoid costly downtime. Starbucks proves in its case how vital innovation is when scaling. In the last quarter, 35% of the company’s revenue got here from online orders. What do we have? The coffee giant faced a challenge challenges in managing the increase in mobile ordering, leading to long waiting times and customer dissatisfaction. To solve this problem, Starbucks must prioritize technology solutions that streamline operations and improve efficiency.
6. Scale correctly
A typical misconception is that scaling a business simply means increasing sales or expanding into latest markets. While growth is actually a goal for many firms, true scaling is about preparing your organization to handle that growth in a sustainable manner. Rapid, uncontrolled expansion can often lead to unexpected challenges resembling staff shortages, system failures and financial instability.
I think all of us remember WeWork’s rapid scaling. The coworking giant’s aggressive expansion strategy, characterised by opening multiple locations with long-term leases, ultimately proved unsustainable. In the absence of a developed, trusted customer base, many of those locations had to close. Scaling needs to be a strategic process that focuses on building a resilient business, not only expanding your reach.
As the startup landscape evolves, the ability to scale effectively might be a key differentiator. By focusing on building a strong foundation, investing in your team and leveraging technology, you may overcome the challenges of scaling and establish yourself as a market leader.