As a former Dragon on BBC Online Dragons Den, business columnist for The Scottish Sun and Serial entrepreneur, I know a thing or two about business, my new series of vlogs where I will turn you into a business expert who even knows the lingo Along with throwing in a few entrepreneurial words of wisdom… Today we are going to look at the word scalability.

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Welcome back to Speak Like Shaf. I take the mystery out of out the language of business and explain it to you in a plain, accessible and easy-to-understand way. As well as giving you the odd bit of entrepreneurial advice. You might have just launched your business, or you’re desperate to take the plunge, and I’m here to help you get to grips with the jargon. Don’t be intimidated, come with me and I’ll show you there’s nothing to be daunted by. This week’s word is scalability.
This is a word that you can’t imagine hearing outwith a business setting, isn’t it? It’s a noun and it means to have the capacity to be changed in size or scale. In business terms, this means a company, network or software that can grow to manage and adapt to increased demand. Pretty straightforward, right?
I’m gonna bring out my little Stone Age friend to help me explain scalability to you. If you’ve seen Speak Like Shaf before, you know that Rab The Rock Star was one of the world’s first entrepreneurs. Back in the tough times of the Stone Age, he was a rubbish hunter and spent most of his days feeling hungry. Then he came up with an idea. He started a tool-making business and sold his tools to men who were better hunters than him. He used the cash to buy food and increase his standard of living. Now, Rab’s business idea was such a winner that it grew. Thankfully, it was scalable, and he started to employ three villagers to help him produce the tools. They stuck to his design and divided the labour in the most productive way. Before long, instead of one man making two tools a day, there were three men making ten tools a day. Rab had not only improved his own life, he was also improving that of the people around him. Never mind being a rock star, I think we should call him Rab the Superstar.
As a side note You will agree by splitting up the job of creating tools between the 3 employees Rab should be credited as inventing the concept of division of labor. But that’s for a future video.
Scalability of a company or product describes its capability to perform well under an increasing or expanding workload. It’s vital in this day and age as better communications mean the world is getting smaller and more markets and customers are opening up. Now that you know what scalability means, let’s see what it means in today’s modern world. Let’s think about software or a computer programme. It might take a cash injection to make the first model but more and more can be made by cloning the first one without costing too much. So the product can be made cheaply but sold at the same price as the first one.
It’s not just tech companies that need to be able to scale up. Corporate companies should be able to maintain or improve profit margins when sales increase. They might have to change their structure or rethink available resources but if they can’t scale up when they need to, there will be trouble ahead.
It’s worth remembering that not every company will risk scaling up. Start-ups or family businesses can be small by design but very dynamic. Scaling up can be a defining moment for your company so you have to get it right. Going too fast can mean that your business isn’t ready, going too slow will mean you’ll miss out on opportunities.
Are you on the verge of scaling up? Do you need a few pointers? Simply subscribe to my YouTube channel and let’s get started!
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