Scaling a business is a challenge faced not just by start-up entrepreneurs but also more mature SME’s and large enterprises. It is often assumed that just because we have a solution (Product/Service) and customers, we have a proven business that will scale. However our experience suggests that there can be many wrong assumptions made, or assumptions about scaling the business are not validated early in the life-cycle. There are many considerations for leaders, and here are just a few:-
- Is there potential to scale? – Are there sufficient numbers of potential clients/customers/users that are accessible whether it is physically or virtually on-line? The addressable Market is the market you can actually reach not the total market. (Beware of business plans that have “billions” anywhere)
- Is there capability to scale? – Capability is Competence & Capacity. Firstly the core business model may be Product, Service and/or Hybrid each has different scaling dynamics and strategies. Then there are the structural components, internally are we organised and have we access to the resources that will enable scaling.
- What changes are required to scale, and how will we approach these changes? – Depending where you are in the business lifecycle (See BAM™ stages) and also the maturity and experience of your venture, will influence the nature and extent of changes to your business/organisation.
- Organic or inorganic scaling (or both)?:- Organic scaling is about building the capability internally and directly controlling the growth of scaling, whereas inorganic involves making an investment in a 3rd party to enable the scaling, this could include M & A, JV or strategic Partnering. The BAM™ considers both options and making a business case for a decision on strategy
Our professionals help you complete the analysis, consider options and answer the questions above. As appropriate to your business context we will leverage the BAM™ and the OMI™ to identify “what are the right things to do? How to do them? And when to do them?
We are not just about advising you what to do? But also where appropriate filling the capability gaps to maintain scaling momentum until your organisation has the required capability in place. We also help build that capability.
So the following are the areas we can add value:
- Scaling options and strategy
- Capability to scale analysis
- Identification of 3rd parties to enable scaling
- Structure, Process, and Strategy to contract with 3rd party
- M & A, JV & Strategic partner integration
- Change Management to enable capability