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Five Questions to Determine if Your Business Model is Scalable and Sustainable

Five Questions to Determine if Your Business Model is Scalable and Sustainable

Business is booming and you’re growing at a healthy clip. Great. Buuuuut … is it scalable and is it sustainable?

Think about your business model. You have people (with their various capabilities and traits), processes, organizational structure, and infrastructure (such as facilities and equipment).

1) Which part of your business model is the limiting factor to continued growth?

2) How much more business would it take to cause your current model to fail?

3) What steps and lead times are required to prevent failure?

4) What would the business model of a top performing company twice your size look like?

5) What changes to your model are required to become that top-performing company?

These questions should provoke your thinking about how to manage growth. No, they won’t help you design the perfect organization, but they will help you intentionally design your organization.

Don’t let today’s successes blind you to tomorrow’s challenges. More than a few businesses have grown themselves to death. Model your growth to manage your growth.

Your thoughts?

Michael

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