Scaling a Business: Best Steps to Follow in 2023

Scaling a Business: Best Steps to Follow in 2023 | Business Management | Emeritus

According to Bank of America’s 2021 Small Business Owner Report, 60% of business owners believe their revenue will continue to grow if they adopt scaling techniques. While this is pandemic-related data, scaling has always been a significant factor for organizations, regardless of the COVID-19 impact. Scaling a business allows companies to increase their capacity, expand their reach, and grow revenue. That is why organizations search for professionals who specialize in improving efficiency, streamlining processes, and increasing profitability through various measures to ensure long-term success and sustainable business growth. 

However, you must know the steps to take and the dos and don’ts associated with scaling a business to succeed in a competitive marketplace. We look at the internal processes involved, the advantages, disadvantages, and other details.

Scaling a Business

Scaling a Business

Scaling a business refers to the process of enabling and supporting the growth of a company and allowing it to succeed without getting hampered. Business scaling requires planning, funding, an efficient staff, robust systems and technologies, and interested stakeholders. 

Scaling occurs when the company’s revenue increases without a substantial cost increase, which implies a more sustainable way of growing. The process further enables the business to handle an increase in sales, output, or work cost-effectively. 

What is Situational LeadershipImportance of Scaling a Business

Successful scaling enables the strategic growth of a business that helps keep up with the market demands, increase profits, and improve efficiency. If a company does not scale its business appropriately, it may not be able to meet its full potential or can even fail altogether. 

Scaling a business can also help the company increase its capacity and reach, which in turn leads to growth in revenue and market share. It can further streamline processes, automate tasks, and reduce costs, which may lead to efficiency and profitability. Scaling may seem to be a challenging task, but organizations must achieve their goals and succeed in a competitive market. 

Why Scaling a Business is Hard

According to McKinsey’s 2021 global report, around 80% of new businesses have not scaled beyond $50 million in annual revenue after four or more years of their existence. The reason is that many companies find scaling a business to be difficult.

Here is a breakdown of reasons why this can be hard for businesses. 

Resource Constraints

Rapid growth often requires significant investments in people, technology, and infrastructure. This can be challenging for organizations with limited resources.

Process Complexity

Business processes become more complex with a company’s growth. This may make them difficult to manage, requiring sophisticated systems and technologies to maintain efficiency and effectiveness.

Hiring and Retention

Finding and retaining top talent becomes increasingly difficult as a business grows, requiring organizations to implement effective recruitment and retention strategies.

Maintaining Company Culture

Scaling can also present challenges when it comes to maintaining company culture and ensuring that new employees are aligned with the organization’s values and goals.

Adapting to Change

Scaling requires organizations to be flexible and adapt to new challenges and opportunities, a difficult task for those used to established ways of working.

Managing Risks

Organizations face more risks as they grow, such as increased competition, market fluctuations, and regulatory changes. These factors must be managed carefully to ensure continued success.

ALSO READ: Why Does Business Profitability Matter? How do You Calculate it?

What are the Three Ps of Scaling?

Scaling a business involves multiple key elements that are critical to its success. They enable organizations to create a strong foundation for sustainable growth and success.

Here is a breakdown of the three ways of scaling a business. 


Organizations must have the right people in place to scale a business. The process includes having a strong leadership team and a motivated workforce with the right mix of skills and experience to support growth. 

Business leaders should also focus on developing a culture that fosters collaboration, innovation, and growth. Moreover, they need to invest in attracting, hiring, and retaining top talent, as well as providing opportunities for professional development and advancement.


Organizations must scale a business with well-defined and high-quality product offerings. They need to focus on product innovation and development, as well as continuously improving existing products to meet the evolving needs of their customers.

The workforce must therefore ensure that the products remain aligned with the organization’s overall strategy and mission to enhance its business growth. 


Scaling a business requires setting clear priorities and making strategic decisions. The process includes prioritizing investments in people, processes, and technology while focusing on impactful initiatives that will drive growth. 

Organizations need to continually assess their priorities and make changes as needed to stay aligned with their goals and remain competitive. 

What are the Ways to Scale a Business?

What are the Ways to Scale a Business?

Business scaling requires careful planning, strategic decision-making, and a focus on operational excellence. Organizations can follow the following key steps to achieve success. 

Define the Target Market

Businesses must define the target market they are trying to reach and understand their needs and preferences. The process will help them create a product or service that is well suited to the client or customer’s needs and increase the chances of success.

Develop a Strong Product Offering

Organizations must focus on product innovation and development while improving existing products to meet the evolving needs of the customers. 

Build a Robust Infrastructure

The most convenient way to scale a business is by investing in technology and infrastructure to support growth, such as scalable IT systems and robust data management processes.

Streamline Processes

Organizations must implement clear, streamlined processes for tasks such as customer service, product development, and financial management.

Hire and Retain Top Talent

Organizations can seek help from HR departments and marketing teams to attract and retain top talent by offering competitive compensation packages and opportunities for professional development and advancement.

Foster a Strong Company Culture

It is important to build a company culture that fosters collaboration, innovation, and growth. Organizations must also assess their progress and make changes to stay aligned with set goals and remain competitive.

Secure Funding

Businesses must secure funding, either through traditional financing methods or alternative sources, to support growth and investment in people, processes, and technology.

Advantages and Disadvantages of Scaling

Scaling a business is a risky yet effective strategy to increase profit. However, it has its advantages and disadvantages. 


  1. Improved Efficiency: Scalable businesses plan for all eventualities and make sure they can operate in difficult circumstances.
  2. Consistency: It enables companies to remain prepared to face the ups and downs that may emerge. 
  3. Adaptability: Scaling enables businesses to maintain the flexibility to adapt to different economic conditions and changes.
  4. Longevity: Businesses that choose scalability are more likely to survive in tough situations because they have backup solutions ready for unforeseeable problems.
  5. Competition: A scalable business can increase its competitive advantage in the market through streamlined and optimized revenue and profits. 


  1. Increased Costs: Scaling a business may lead to increased costs, such as investments in people, processes, and technology.
  2. Complexity: Companies may find it challenging to maintain control and stay aligned with organizational goals when the business grows.
  3. Decreased Flexibility: Businesses may become less flexible as they grow, making it harder to pivot or change in response to market conditions.
  4. Risk of Losing Focus: Scaling a business can be a time-consuming and resource-intensive task that may lead organizations to lose focus on their core mission and goals.
  5. Cultural Shift: Businesses may witness a change in their respective cultures that may lead to the loss of organizational identity and values. 

Scaling a business is significant because it allows companies to grow and increase their impact, revenue, and profits. It further enables organizations to reach a larger customer base, enter new markets, and establish themselves as market leaders.

Scale up with Emeritus

To help your organization improve operational efficiency by devising significant scaling strategies for business growth, you need to have the right skills and knowledge. Emeritus’ business management courses can help you get there. Not only will these well-designed courses help you know how to go about scaling a business, but they will also enable you to learn more about business management roles across different industries. 

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Scaling a Business

About the Author

Content Writer, Emeritus Blog
Mitaksh has an extensive background in journalism, focusing on various beats, including technology, education, and the environment, spanning over six years. He has previously actively monitored telecom, crypto, and online streaming developments for a notable news website. In his leisure time, you can often find Mitaksh at his local theatre, indulging in a multitude of movies.
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