Spotting ‘Scalability’ – And How to Avoid The Elephant Trap of A Lifestyle Business

Spotting ‘Scalability’ – And How to Avoid The Elephant Trap of A Lifestyle Business

If you’ve watched the TV programme ‘Dragons’ Den’, you’ll know that scalability is an important factor when it comes to investing in a business.   Scalability is all about having a business that delivers future rewards exponentially as a result of the time and money invested. Without it, a business is going nowhere – and yet, many would-be entrepreneurs don’t stop to think how many years may be wasted in chasing a dream that will always be just that. So, can scalability be achieved against all the odds? Or does there have to be an almost pre-ordained likelihood that it’s there from the start? And if scalability can be achieved when a fledgling business doesn’t appear to ‘have it’, what are the tools an entrepreneur can use? The tired aphorism (and back-handed compliment) that Britain is ‘a nation of shopkeepers’ must stem in part from the realisation that so many people who achieve their dream of being self-employed are, in reality, setting up a ‘lifestyle business’. Some would say that these aren’t ‘real’ businesses. If you can’t employ a dozen or so people in the first couple of years, you’ve probably got a lifestyle business on your hands that will never grow to the heights you dreamed of when you first set out on your glorious venture. Dream On  What are the pointers to look out for when you’re first starting out? Or when you may be tempted to go into partnership with someone? Or even become a business investor, Dragons’ Den-style?! We’ve all heard of ‘economies of scale’. Applying the concept in real life does in fact have some... Read more...