Any entrepreneurial individual loves the idea of starting a business. In particular, a business that allows him or her to sit back and pursue their life’s endeavors while the money flows in. With the increasing prevalence of the internet, self-sustaining businesses that scale are becoming increasingly easier to attain. An online business that’s designed to handle more and more customers without adding to the owner’s operational workload are increasingly thriving.
So, what characteristics do these businesses have in common, and what can you do to make your online business scalable? Let’s find out.
What is a scalable online business
Investopedia defines scalability as, “a characteristic of a system, model or function that describes its capability to cope and perform under an increased or expanding workload. A system that scales well will be able to maintain or even increase its level of performance or efficiency when tested by larger operational demands.”
For an online business to be scalable, it needs to be able to keep overheads consistent as its customer-base grows.
If overheads were to increase as new customers are onboarded, business expenses in terms of money and time would increase accordingly.
As the business owner, if you have to perform a manual task when a new customer makes their way into your system, this effort will add up over time.