Scaling up: how to build flexibility into your strategy

As reported by ICAEW

How to grow: scaling a business isn’t just about growth, it’s about growth with resilience – especially during these times of greater uncertainty.

The path from lean startup to scalable business rarely follows a straight path. The traditional view of growth often leans toward predictable, linear progress. But today’s volatile business landscape demands a different approach; one that prioritises adaptability without compromising long-term goals. 

Accountants can help organisations scale up effectively while embedding the flexibility necessary to adapt to unexpected shifts. Understanding how to build flexibility into scaling strategies is critical.

Flexible foundations

Flexibility in business strategy means having the structures, systems and mindset that allow your organisation to pivot quickly and efficiently in response to change. 

Recognising that financial models and plans should not be rigid is a must. Instead, they should include multiple scenarios, contingencies and triggers for reassessment.

“The first thing is to get your foundations right and understand your data infrastructure: what systems you have, what data you’re collecting and the validity of the data, so you have visibility of your key performance indicators (KPIs) and can react to any changes,” says Anne Allibone, portfolio CFO and commercial adviser for start-ups, scale ups and SMEs. “Make sure that those processes and controls are scalable, so that as you get bigger and you’re not able to have sight of everything, you’ve got the processes and controls in place to know that your data is still being well managed.”

For instance, when preparing a financial forecast, consider modelling best-case, worst-case and moderate scenarios. Use KPIs to trigger a review of strategy, such as a sudden drop in revenue or a significant change in customer acquisition costs. This allows businesses to respond with agility, rather than react in panic.

Accountants play a vital role in advising on and implementing cloud-based accounting platforms that offer automation, integration and real-time data analytics. Scalable systems will reduce the administrative burden and increase the accuracy of financial reporting, freeing up time to focus on analysis and strategic initiatives.

Review plans regularly

Scaling up often comes with some type of investment. A clear plan of how you’re going to make that money work for the business is essential. “Model what you think you’re going to spend that money on and how that investment is going to enable you to scale. If any of your strategies aren’t panning out the way you expect, you’ll be able to react quickly,” Allibone says.

The initial foundations you’ve put in place will afford you the ability to monitor and measure that investment, and allow you the need to pivot should the scenario arise.

Implementing quarterly or even monthly planning reviews creates a rhythm of regular reassessment. This makes it easier to shift resources, adjust tactics and seize opportunities as they arise, rather than being locked into outdated assumptions.

Savvy tactics across your operations can help make your money work for you better too, such as reviewing customer and supplier terms.

“We’ve bootstrapped our year-on-year growth by negotiating extended supplier terms rather than taking on investors,” says Amanda Spicer, serial entrepreneur and Chief Operating Officer of Your Eco, a solar energy installer.

Take on one market at a time

There are multiple ways to grow such as through acquisition, organically or entering new markets. Allibone cautions against launching into multiple new markets simultaneously, though, before you have mastered your first market.

Understanding all of the nuances in your first market, even making mistakes in that market, will stand you in good stead for when the time comes to enter new markets or locations.

“Make sure you nail the one market that you’re in or have the best fit for first. Maximise learning in that market, so that for expansion you’re only really having to understand market nuances rather than supporting costs in multiple areas too early,” Allibone says.

That way you’re not investing in multiple markets when you still don't actually know whether you’ve assured product market fit, or targeted the right audience. “Once you know that you’ve got the proof points in one market, then you can confidently hit the accelerator,” she says.

Build teams organically

Another critical aspect in fostering scalability is in ensuring you’ve secured the right people for growth. Consider flexible staffing models, such as part-time, freelance, or remote roles to manage costs and respond quickly to changing needs. 

Workforce analytics such as productivity per employee or revenue per hour can inform recruitment decisions and underscore opportunities for automation or retraining.

“Often at the really early stage, you’ve got very broad roles, so people are having to cover a lot within their remits. Sometimes companies can get a bit stuck with how or when to structure for a scaled team.

Each time you want to grow a bit, you’re considering having to add a whole extra management layer or vertical team,” Allibone says. 

“My advice is, don’t try and rush it. Let it happen more organically as resources get to capacity, otherwise you’ve got a big additional cost and you’ve got to grow quickly to be able to cover that cost. An ideal and balanced structure can be something you are heading towards rather than need to have at all times.”

Consider outsourcing

Not everything needs to be built in-house. Accountants can play a key role in evaluating outsourcing options for non-core functions, as well as identifying strategic partnerships that accelerate growth without overextending internal capacity.

Outsourcing finance functions, IT, or logistics can reduce fixed costs and increase agility. Similarly, forming alliances with other organisations for co-marketing or joint ventures can expand reach with less risk. 

Accountants should assess the financial viability and strategic alignment of such partnerships to ensure they enhance, not complicate, the company’s ability to grow.

“Flexibility in scaling comes from designing systems that can expand and contract with market demands,” Spicer says. “We've built our entire operation around what I call ‘elastic architecture’ – using a core team of 25 in-house employees supported by 40 subcontractors. This model allows us to scale rapidly for large projects without the fixed overhead costs that can cripple businesses during quieter periods.”