Scalability and Small Business
All businesses need to be scalable on one or more levels in order to hold onto and build market share. Even so, small businesses have the greatest need for scalability because they are the ones with the biggest potential for growth. They are the organizations that have to be more careful with the limited resources they have, the ones that go through metamorphoses as their leaders become more familiar with the business game. Many small businesses fold directly because they fail to foresee what they might need or where the market can take them, having too much of a here-and-now mindset.
It is natural for a small business to want to make as many areas scalable as possible, and business leaders should work toward this goal. Still, you should recognize that not everything might be scalable. A lack of scalability in one or more areas doesn’t necessarily stop you from moving forward, but it does influence how you approach your system design, equipment purchase and even hiring. For this reason, it’s just as important to recognize where you can’t change as to see where you can.
Scalability is associated both with computer systems and business change. In either case, it refers to the ability to adapt, particularly in regard to growth and increased demand. Scalability is essential in that it contributes to competitiveness, efficiency, reputation and quality. Small businesses must be particularly mindful of scalability because they have the biggest growth potential and need to maximize the return with resources. Although many areas in a company are scalable, some are not. You should consider these with the same serious thoroughness as you do your scalable points.