WHAT IS SCALING OR SCALABILITY?
BY REHAN ALLAHWALA
SCALABILITY in business means to expand the business, for e.g. if you have one
outlet you can expand it by having even 5000 outlets. When you scale your business then the cost tends to reduce, every business can be scalable it’s actually how you think about it.
Long time back there would have been one general store in a particular area but today we get to see so many general stores everywhere. When COKE started they started, they started from a small place in NewYork and today they are available all over the world. So how did this happen? First the person must have thought about it and when he scaled his business his cost started reducing. For e.g. if you go to a mobile shop and ask for the price of 100 mobile phones , the price the shop keeper would offer would be much less than the price of one mobile phone. By scaling, the price you would get would be much less. Whatever business you do if you increase the quantity you would get a better leverage.
Before starting the business you must also think that how you would scale the business and how you would do it and for that you need to have a plan. You have to start thinking with SCALABILITY, if you think small then you can never grow your business and if you think BIG then automatically you would get the tools.
You can create and follow processes that can help you scale your business and it is very important for poor countries to think about scaling of businesses. For e.g. Mc. Donald’s has 35,000 branches all over the world, Starbucks and Sub Way has 40,000 branches worldwide. Wall Mart has 3000 branches all over the world and the main branch of Wall Mart has a yearly turnover of 1 Arab Dollar, whereas the turnover of Pakistan is 20 Arab Dollars, which is equal to the income of 10 outlets of Wall Mart.