I don't know about you, but when I started my own business, I felt like I was forced to learn a whole new language--the language of business: ROIs (Return On Investment), Gross Revenue vs. Revenue, and Percentage Growth (I can even tell you how to calculate that now!). Feeling rather impressed with myself, I then stumbled across the concept of "scalability." Oh boy? I can honestly say that I am making money (thank you Profit Goddess), so why should I be concerned about scalability? Michelle Loretta, co-founder and small business consultant with Sage Wedding Pros, has the explanation below:
Scalability. Here is how it works:
A business that earns $1 million is called scalable when it can invest in people and infrastructure that leads to exponential growth. A business is scalable when you see this: A $100,000 investment the infrastructure of a $1 million dollar company that results in a billion dollar company. True growth happens when you scale a business.
In the wedding industry, we rarely see that kind of growth and definitely not those kinds of earnings. Scalability works a little differently in our industry. Scalability happens when a business owner can replace him/herself from doing all of the servicing of clients. By having more people do what you do (and do it profitably) means that you are able to scale your business. You are able to grow your business by growing your infrastructure.
SO – this is the big question:
Can you grow your business to incorporate a team that can execute your artistry with the same caliber and quality? And – can you do that with enough of a profit margin to still have a profitable business?
THIS, my friends, is one of the BIGGEST conundrums in our industry.
The Ritz-Carlton does this with its hotel guest experience. Drybar does it with their blowout hair salon. Nordstrom does it with their department stores. But when it comes to artwork, how do you replicate that?
Processes, systems, checklists… consistency across all levels of service – this is the ONLY way to ensure that your artistry can be replicated time and time again. Without being able to replicate artistry, you can’t be scalable in this industry.
A great example of a company in the wedding industry that has been able to achieve this is Aab Creates in New York City. This company, founded as a Always a Bridesmaid by Xochitl Gonzalez and Mayra Castillo, has been able to create a scalable sister business, Just About Married. This is a company that they established for the sole focus of day-of-wedding coordination. Xochitl and Mayra have been able to create systems and processes to execute events with the same caliber of artistry that they built with AAB. But the beauty of this business is this: they aren’t having to service every. single. client. themselves. They have been able to grow their profits by growing their infrastructure.
Click here to continue reading about the importance of scaling your business! For other great business tips specific to event professionals, we have numerous posts discussing networking, growing your client base, and tips to improve your overall business! Also, please pass along this helpful information by clicking on the "share button" below to share this post to your social media accounts.
For more helpful tips and everything events, please check blog.eventcompass.co daily!
EventCompass: Professional Event Planning Tools That Save You Time