A scalable business is something that all entrepreneurs aspire to achieve—but what does this exactly mean?
Simply put, scalability means the ability of a business to respond to increasing demand or workload, and its potential to multiply revenue with just a minimal incremental increase in its costs. One of the most effective tools to scale your business is outsourcing, wherein a company hires a third party to accomplish a specific function or activity.
When the need arises, outsourcing allows businesses to expand their capacity easily without requiring them to formally hire new staff, invest in more office equipment, and lease a wider space—in short, without increasing the fixed overhead costs.
So how can companies leverage outsourcing to establish a scalable business?