It’s one thing starting a new business but quite another to scale it up to a level so that it can grow and become financially viable. Starting up a small business is hard enough but when it comes time to grow or expand will your business model be robust enough?
To increase the size of a start-up business and turn it into a full-scale operation means that you possibly need more space, more people and more capital. But even if you have these resources, you might expand your business into a monster that robs you of your time and resources but doesn’t give you the returns you were looking for.
Here’s an example. A small business in India was serving over 7,000 sandwiches orders a day but couldn’t scale up. It was difficult for the business to encourage customers to have sandwiches for lunch. The founders realised that to become a sizeable business they would need 200 outlets with at least 15 employees in each outlet. But that would mean that they would suddenly have 3,000 staff on their payroll. Continue reading “Does your start-up have scope to expand?”