Scaling Up
What happens when a small business grows; making more products, hiring people, reaching more customers; the challenges and opportunities of scaling
What a learner can do afterwards
- Describe what 'scaling up' means for a business
- Identify at least two challenges of growing a business (need more money, more people, more materials)
- Explain how a lemonade stand could grow into a bigger business step by step
1 · Read
Scaling up means growing a business bigger. A business scales up when it makes more products, hires more people, or reaches more customers than before. It usually happens after a small business starts doing well and needs to keep up.
A lemonade stand can scale up step by step. Step 1: Maria sells lemonade alone at one small table. Step 2: So many people want lemonade that she cannot keep up, so she asks a friend to help. Step 3: They buy lemons in bigger batches from a big supplier, which costs more money at first but saves money per cup. Step 4: They open a second stand across the park to reach even more customers.
Growing bigger costs money before it earns money. A business needs cash for more supplies and more helpers, even before the extra customers show up.
Money is not the only challenge. A bigger business also needs more people to do the work and more materials to make enough products. The reward is reaching far more customers than before.
Scaling up means growing a business bigger, which takes more money, more people, and more materials, but lets it reach many more customers.
2 · Watch
Take it off screen
Where it sits
This opens up
Where this leads
Jobs that lean on this skill. Follow one to see everything it is built on.
8 questions wait behind this lesson, each with its answer explained. Every answer feeds the sky: stars light as they are learned, and dim when it is time to come back.