As part of business immigration, UK authorities requires business ideas which are innovative, scalable and viable. Scalable businesses are well structured to accommodate or respond to growth or expansion nationwide or worldwide. As a small business owner, a scalable business should envisage itself as part of a large economic system with a clear vision and a robust business model. The market economy is highly specialized and a scalable business should leverage the products and services available in the market to deliver its core business activities. A scalable business is like other small businesses however, it grows rapidly at an exponential rate and become large at relatively lesser time period than a conventional startup.
A well-structured business plans will have ability to accommodate growth in the demand by pre-identifying the bottlenecks in the business models. Business owners should identify repetitive tasks, portable activities, and hard to produce resources in their business model. When it comes to growth, they can install automation or ERP systems to follow standard operating procedures. Small businesses can outsource their non-core business activities. Similarly, they will start training or recruit personnel with specialized skills for hard to produce skills.
Financial aspect of scaling up a business should not be ignored. In a scaled business revenue is expected to grow at exponential rate whereas the costs associated with the delivery of products or services should be incremental or marginal. Often the business grows but the business incurs more losses rather than profits. A scaled business makes more profits when its revenue grows overtime. At their initial stage, the scaled businesses demonstrate significant financial cushion requiring less capital in order to grow. Further expansion can be facilitated by capitalising higher abnormal profits from initial stage of their operations.
Majority of the businesses in the UK remains family run business and most of them remain small in size. Almost 90 percent of businesses in the UK is 0-9-person company and they are unable to scale. The family run businesses are reluctant to grow and they fear about the quality of services as well as profit will decline with increasing the size of the business. They also find it difficult to franchise their business operations. The size of the business operations again depends on the complex economic relationship and ability to organise large businesses given the product or services economy of scale. Generally, increasing returns to scale more likely to yield large business sizes sometime leading to monopoly power.
Technology is crucial in managing large scale businesses. Often the workflow is very complex to digitize them in an enterprise management system. And business planning and analysis and digitising them is a continuous process. The communication systems between customers and business representatives, intra-company communications, inter company communications, etc. should be well formed geared towards robust and responsive communication between them. Technological processes and business processes should be responsive to the industry trends and remain relevant otherwise the business will be unable to scale and survive.