Don’t Just Scale, Scale for Profitability

April 6, 2015

8:00 am

Every entrepreneur who starts their business is going to inevitably deal with the problem of growing, or scaling, their business. The problem is that this term is horribly vague and undefined at its root, if you really look at it.

What does it mean to grow your business? The answers vary from person to person, but Advaion, an independent consulting firm, applies their global expertise specifically to help entrepreneurs and businesses through growth, scaling, and similar situations.

One of the most important things to remember about scaling your business, according to Advaion’s Pavan Satyaketu, is that it’s not a guarantee. Rather, you have to explicitly build a plan of attack to ensure you grow profitably.

Anybody can expand a business and hire more employees, which could technically be considered growing or scaling. However, not as many entrepreneurs and businesses can successfully scale so they remain profitable on their top lines throughout the entire process and beyond.

This is where Advaion can lend a helping hand. You have to have repeatable processes for your growth, and their experts can assess your current strategy and help you implement new processes, models, and infrastructure to ensure you grow successfully and profitably.

“When these web-based businesses initially launch, their policies work well for a small startup.  But as they experience double and triple digit growth, they face enormous operational challenges that require changes in their technology infrastructure and accounting policies that better reflect their growing business needs”, explains Satyaketu. “We have worked with several fast growing technology companies to identify areas where they can feel an immediate impact on their bottom line.”

For Satyaketu and his colleagues, it all hinges on the question of what can be changed to make your current model more efficient.

That’s because the constantly expanding and shifting global economy provides a lot of opportunity for these small, web based businesses to continue to grow at exponential rates. The key to their success, though, is in their ability to adapt their companies from small businesses to large self-sustained and profitable global companies.

“Some of these companies are growing so fast, and they’re excited, but when you’re building that fast and revenue comes in that quickly sometimes you end up losing money on back end,” says Satyaketu.

Scaling for profitability becomes even more important when you consider the impact it could have on potential investments. Take, for example, a company that charges individual credit cards on payment periods for services rendered.

At first glance it might appear, to the founders and investors, that their revenue is high and the future looks bright. But what happens when your current infrastructure fails to predict the future accurately?

You’re expecting to collect similar revenue the following month only to find to your dismay that customers have left and credit cards have expired. You’re unable to charge the same amount of people, and now you’re top line has come down.

Plus, you can’t fundraise your way out of a financial loss. Sure, you can try, but it’s a hard truth to face when your investors ask to see your plan to generate sustainable revenue over the next five to ten years.

Advaion’s answer to all of this is simple: implement models, infrastructure, and processes to ensure this doesn’t happen with any type of business. It never hurts to admit that sometimes you may need a helping hand, and Advaion is there to help in whatever way they can.

 This information is brought to you through a sponsorship from our partner Advaion.

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Will is a Senior Writer with Tech.Co, based out of America's Finest City: San Diego. He covers all territory West of the Mississippi river, digging deep for awesome local entrepreneurs, companies, and ideas. He's the resident Android junkie and will be happy to tell you why you should switch to the OS. When he's off the clock, Will focuses his literary talent on the art of creative writing...or you might find him surfing in Ocean Beach. Follow Will on Twitter @WJS1988

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