A scalable business is an organization in which revenue can grow significantly faster than costs and organizational complexity, because processes, people, information systems and business model are designed to carry the additional load without proportionally duplicating the structure. It is not a property of the product, it is a property of the organization: the difference lies in the organizational and economic structure, not in the industry. The operational diagnosis rests on one question: how much do variable costs and organizational complexity increase for every 10% increase in revenue. Distinctive: property of the organization Distinctive: without proportionally duplicating the structure Essential: revenue can grow significantly faster than costs Essential: organizational complexity Essential: designed to carry the additional load Constant: processes, people, information systems and business model Constant: not a property of the product
Glossary Scalable business An organization whose revenue can grow significantly faster than its costs and organizational complexity. Read the full article All glossary
