Business Scalability: Don’t Get Too Big for Your Riches
Every business wants to become more successful. Growth is often viewed as an integral part of this process. But what would happen if your business suddenly had 100 times more customers than usual? Could your website handle the traffic? Would your team be able to fill their orders, and would the processes you set up to run your business be sufficient or even appropriate? Scalability isn’t just about attaining growth, it’s also about being ready for it, or maybe even deciding that growth is not what is best for your business model. Before you launch your next marketing campaign in an effort to find lots of new customers, it might be worth asking if your business is ready to handle them.
The Bigger They Are…
Scalability is not just an issue for small or growing businesses, it is one every business must discuss. Even megacorporations with top-tier teams and well-established processes scaled for vast numbers of transactions can be overwhelmed by unexpected numbers. One has only to remember Ticketmaster’s flub with the launch of Taylor Swift’s Eras Tour. The demand for tickets exceeded their expectations and crippled their systems, leaving frustrated customers locked out, unable to purchase tickets, and very angry. When a company of this size and enormous resources is taken down by an unplanned surge of demand, it reminds us that companies of any size can fail with too much business. This is why scalability is an integral part of any growth discussion.
Adapt When Necessary
So what do you do when you discover that your business has a scalability problem? The good news is that not every scalability challenge requires a massive investment of time and money. Sometimes it’s just about finding a smart way to pivot or make adjustments. A local restaurant we worked with found themselves overwhelmed when they launched their online ordering system. While getting slammed with new business might seem like a good problem to have, it’s certainly not good when 50 orders pour in during the same 15-minute window and the kitchen is unable to prepare them in time! They couldn’t build a bigger kitchen and there was no room for more cooks, so what was their solution? They simply added a pickup-time to the online order form, limiting how many orders could be scheduled during each timeframe. This small change balanced the sudden demand, kept the food quality where it needed to be, and kept customers happy without causing burnout of the kitchen staff.
Sometimes It’s Just Not Meant to Be
There are instances when a scalability issue isn’t caused by a business’s processes or websites, but by the business model itself. A mobile notary service comes to mind. Notaries have a cap set by the state on what they can charge for their services. This means their potential revenue is severely limited, only added to by charging a small travel fee. Scaling a business like this by adding vehicles and staff increases overhead without enough added profitability to make fiscal sense. In this situation, more customers do not equal more success. It’s important to look realistically at these factors before investing too heavily in marketing or other growth efforts.
What We Do
How does Wild Iris consider business scalability when we are approached for marketing?
- Website Performance: Is your website fast enough to handle a surge of traffic? Are there processes that can be streamlined to ensure efficient information flow, scheduling, or ordering?
- Inventory/Service Capacity: Does your business have the capacity to deliver the services or products an increase in demand might call for?
- Limitations: Are there bottlenecks that might cause problems during unexpected demand? Scheduling, fulfillment or shipping chokepoints?
- Profitability Scaling: Do new customers bring profit, or do they actually reduce it because of the resources required to provide additional products or services for them?
Answering these questions before making large investments in marketing is the best way to make sure your dollars go their furthest.
Balancing Your Marketing Budget
Smart business growth happens in stages, and with planning. Running an ad campaign designed to double your business when you can only handle a 20% increase in demand is a fool’s errand. You endanger your customer relationships and your brand image when you can’t fulfill your part of the contract. Investing in infrastructure, adjusting processes, and training your team to ensure they are all ready for growth is vital. As you do this, you should scale your marketing to match. This way you can be sure your business is ready for the demand a successful marketing campaign will bring you, without worrying about overwhelming your capacity and disappointing your customers.
That said, balance by its very nature works both ways. Just as it’s a bad idea to take on more demand than you can meet, it’s also risky to hold back on marketing until the pipeline runs dry. By keeping an eye on customer order flow and recognizing early signs of a slowdown, you can begin to market before that becomes a problem. This approach helps you maintain consistent levels of traffic and avoid the “feast or famine” cycle that so many businesses live by. Marketing isn’t just a tool to encourage growth. It’s also a safeguard to keep your momentum from slowing.
Are You Ready to Grow? Let’s Find Out!
Scaling your business is an exciting prospect! But to scale successfully you must be prepared to deliver on the promises you make to your customers. When we’ve helped make sure your business not only attracts customers but is able to keep them, we know we’ve done our job. If you’re ready to build a strategy that balances growth with preparation, Wild Iris is ready to help you.