In this module we will cover:
1. Direct and Indirect Scaling
2. Is your Social Business ready to scale up?
3. Scaling Strategies: From Branching to Open Source
By the end of this module, you should know whether your current business model is ready for scaling, and which strategy for scaling is most appropriate for you.
In the prior module, we showed how you can develop your basic Business Model. Once you have developed a business model that is both financially viable and socially impactful, you are ready to develop a strategy for how to scale up.
There are two different types of scaling:
1. Directly Scaling is about directly growing sales. This first phase of growth is about building a larger organisation that can sell more. It might include expanding to new regions or countries by setting up new subsidiaries in those places. Direct scaling is typically the first growth phase for any venture, and it is critical: you need to reach a certain size and level of profitability before you can adopt more radical scaling strategies. It can last many years. Indeed for most organisations direct scaling is the only
form of scaling that they will ever do. It is certainly possibly to grow very large, and achieve significant impact, through direct scaling alone.
2. Indirect Scaling – once the organisation has achieved a certain size, there may be more effective ways to increasing impact than simply making more sales. There are a wide range of strategies that social innovators can adopt in order to reach even more people than they could through direct sales alone: from open sourcing (giving away your ideas for free so that others can easily and rapidly adopt the solution), to franchising, to
teaching others how to adopt your model.
You will also understand different types of social business models, and the the relationship between your business model and your social change model.