Business 101: The Issue of Scalability

It’s always exciting (and nerve-racking) when you start up a new venture. It’s even better when you open your doors for the first time and enjoy a huge flood of business. This means that you have a huge opportunity to make a lot of money and truly achieve a great level of entrepreneurial success. With that in mind, will you be able to handle a sustained level of growth? What will you do if your business suddenly doubles or triples in size?

This is the issue of scalability and it’s an issue that many business owners tend to overlook. For example, if you decide to start an online business where you sell widgets through eBay, business may be relatively slow in the beginning. As such, it isn’t much of a stretch for you to operate the business on your own, putting up the listings manually, processing payments manually, and shipping out the goods yourself.

As business starts to pick up, it will no longer be possible for you to handle all of these manual tasks yourself. What mechanisms do you have in place to manage this growth? Will you hire staff? Automate the process somehow?

Regardless of what kind of business you decide to start — web hosting, e-commerce, a coffee shop, etc. — one of the areas that you should give some serious thought is scalability. Will you be able to handle the growth that your business may experience? It’s a good problem to have, to be sure, but it’s still a problem.

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