For many businesses, the ringing in of a new year means setting new goals, implementing new initiatives, and addressing new methods for growth. For those looking to scale their business in 2023, it can be worth taking a new approach to help ensure their business can thrive. However, to successfully scale a business, it is essential to understand the conditions of the market and what it will take to help a business grow.
What makes a business scalable?
The primary quality of a business that can successfully scale is its ability to disrupt. Although being disruptive is generally thought of in a negative light, being disruptive as a growing business is the key to making a lasting imprint on its target market. The most successful products can challenge the status quo and provide a benefit to consumers that will revolutionize the way consumers think about that product category.
Identifying a market need is one of the most important parts of building a scalable business. Successfully scaling a business requires a genuinely useful value proposition for customers, and finding a niche with a legitimate market need will ensure enough demand for success.
Of course, a delicate balance must be struck between finding something innovative and something that consumers will actually purchase. If too many products solve one particular problem on the market, for instance, an alternative must offer such a unique solution that it stands out against the competition. At the same time, if there are no alternatives on the market, it is essential to consider whether that may be a sign that there is no demand for the product.
Where have entrepreneurs seen the most success scaling businesses?
Many multinational corporations (MNCs) will put millions of dollars into researching and developing such alternatives, only to shelve these assets for one reason or another. Most often, this is because it simply does not align with their overall strategy for the given period. As a result, these exciting and innovative technologies are often left in various stages of development despite being entirely viable products on their own. Canny businesspeople can find these opportunities and use them as a launch point to rapidly scale a new business.
Many of the needs in the present market directly result from the societal circumstances in which we find ourselves. Products that can solve an issue — one that is fresh in the minds of consumers currently — are most likely to succeed in the market, as they fulfill both requirements of a successful launch: market demand and sufficiently low competition.
For example, the COVID-19 pandemic has fundamentally changed the face of the business sector. Healthcare products are more in-demand than ever due to the unprecedented situation in which our world has found itself. For entrepreneurs who can find a unique way to solve a prominent problem within the healthcare system, that industry, in particular, presents enormous potential for business growth.
Similarly, e-commerce operations have thrived as a result of the pandemic. Many people were inspired to start a small business from their homes during the pandemic, and those that caught on have since realized the need for additional logistical support. There is a substantial market need for new technologies and B2B services that cater to the needs of the booming e-commerce industry. One potential area for scaling businesses is offering software solutions to e-commerce companies.
There are plenty of opportunities for entrepreneurs looking to scale their businesses in the new year. Entrepreneurs need to keep an eye on the trends driving the market and ensure that any products they are looking to build businesses around fulfill a substantial market need.
Remember: consumers want to buy products that will make their lives better and easier. If a product achieves this in a way that is better than its competitors, it is already primed for success.
