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In the past two decades, the business community has seen a phenomenal surge in the number of billion-dollar startups. Over 2,800 companies worldwide have achieved a valuation of $1 billion or more, and the pace is only getting faster.
With hundreds of new unicorns joining, it’s clear something’s cooking up in the startup world. As the CEO of Flowwow, I know how important it is to grow quickly and efficiently. But what does it take to grow without sacrificing quality? Operational scalability is the answer.
Operational scalability is particularly beneficial for businesses with standardized processes and high transaction volumes, such as fast food chains, car rental companies and online marketplaces. Drawing on my years of gifting marketplace experience, here are six key actions to consider when scaling your business.
1. Promote transparency
Organizations with a high degree of transparency report profit margins that are 21% higher than average. By sharing information openly and honestly, you can foster trust, increase employee engagement and motivate your team to make decisions independently.
Consider the case of Asana. They prioritize transparency by publishing detailed notes about what was discussed at their board meetings and upper-level management hurdles. Such openness empowers employees to align their work with company goals and engage their talents to achieve better results and feel satisfied.
Related: 9 Strategies to Scale Your Business in Uncertain Times
2. Automate routine tasks
To scale efficiently, it’s crucial to automate repetitive tasks. By reducing manual work, you can free up your team to focus on strategic tasks, enhancing productivity and allowing for efficient scaling.
At Flowwow, we’ve seen firsthand the benefits of automation when we developed our own CRM customized for our specific needs. This enabled us to automate order taking, create flexible support templates and even introduce an AI-powered onboarding bot. Thus, we scaled sustainably while maintaining high-quality customer service and keeping our team satisfied with the 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’re investing in challenge-seekers, boosting morale and fostering innovations.
Consider Microsoft, where CEO Satya Nadella has championed a ‘growth mindset’ culture, prioritizing continuous learning and development. They now invest in comprehensive training programs and flexible working arrangements and focus on the mental well-being of employees.
Related: 7 Ways to Scale Your Small Business and Achieve Long-Term Growth
4. Balance data with intuition
While data is crucial, it’s equally important to trust your gut. I remember discussing the launch of the customer app with almost no solid data behind this idea; it was just our intuition. And it worked: today, the app accounts for most of our orders.
Think Tesla. Elon Musk’s decision to pioneer electric vehicles and autonomous driving was as much a leap of faith as it was a calculated move. By trusting his intuition about the future of transportation, he’s positioned Tesla as a global leader in sustainable technology.
5. Build robust technological infrastructure
A strong technical foundation is essential when scaling your business, particularly during peak periods. Investing in reliable systems and getting ready for peak demand can ensure smooth operations and avoid costly downtime. Starbucks proves, in its case, the importance of innovations while scaling. In its latest quarter, 35% of the company’s revenue came from online orders. And what do we have? The coffee giant has faced challenges in managing the surge in mobile orders, leading to long wait times and customer dissatisfaction. To address this, Starbucks must prioritize technological solutions to streamline operations and improve efficiency.
Related: 7 Crucial Ways To Scale Your Startup or Business
6. Scale wisely
A common misconception is that scaling a business simply means increasing sales or expanding into new markets. While growth is certainly a goal for many businesses, true scaling is about preparing your organization to handle that growth sustainably. Rapid, unchecked expansion can often lead to unforeseen challenges, such as staffing shortages, system failures and financial instability.
I guess we all remember WeWork’s rapid scaling. The co-working giant’s aggressive expansion strategy, characterized by opening numerous locations with long-term leases, ultimately proved unsustainable. When faced with the lack of a well-developed, trusted customer base, many of these locations had to be closed. Scaling should be a strategic process that focuses on building a resilient business rather than just expanding reach.
As the startup landscape continues to evolve, the ability to scale efficiently will be a key differentiator. By focusing on building a strong foundation, investing in your team and leveraging technology, you can navigate the challenges of scaling and emerge as a market leader.
