Article four in a series gleaned from Growth for Good conversations and research
The Highland Scalability Trap: Building Sustainable Systems for SME Success
Growing a business in the Highlands is rewarding, but not if you’re unprepared. Steering clear of the ‘scalability trap’ can help. As your company expands, hidden weaknesses may emerge, creating unexpected challenges. Steering clear of the ‘scalability trap’—where growth spirals—can lead to genuine, steady progress. This is essential for actual economic growth and aligns with our Growth for Good vision.
Early structure is crucial.
At the start, all SME founders, especially Highland business owners, juggle many roles. This agility helps in decision-making. Yet, as your business grows, the same flexibility can lead to chaos.
Feeling stuck in your growth journey? You’re not alone.
Here are some common signs that things aren’t scaling smoothly:
• You keep running into the same problems again and again.
• Customers are having different experiences—some great, some… not so much.
• Founders and leaders are stretched thin and burning out.
• Your team feels the pressure, and it’s starting to show in their output.
A quick real-world example:
Let’s take a quick look, outside our region, at Pasta Evangelists—a growing food brand based in the UK. As they scaled up, they began encountering operational challenges, particularly with packaging and delivery. Things were getting messy.
What made the difference?
They establish clear and transparent systems to manage those key processes. That brought stability, improved their customer experience, and helped them grow steadily. It was such a solid turnaround that they caught the attention of Barilla Group, which later acquired them.
Practical Steps to Effective Systemisation
Strong, scalable systems built early boost efficiency, reduce mistakes, and help your team focus on what matters.
Here’s how to start:
Task-Value Mapping: This means prioritising tasks that deliver the most significant impact first.
(For more info, check out this American podcast series here.)
Core Process Documentation: Write clear steps for key tasks, like sales or customer service. This helps operations run smoothly.
(This video is helpful, though the voice can be annoying; let me know if you find a better one.)
Strategic Automation: Or: use technology to streamline processes, freeing up time for meaningful work. For more, try this video from Jaqui Naunton.
Some great ‘Fractional’ consultants are here to help. One example is Jill MacAlpine at InPurpose. I’m happy to update this article with others if you reach out.
Real-world Example:
Green & Black’s Chocolate documented their manufacturing and sourcing processes from day one. This ensured quality and consistency as they expanded internationally (Harvard Business Review).
Stepping Back to Step Up
Many Highland founders find themselves caught up in the day-to-day, answering every question and solving every problem. But true scalability comes when you step back and start delegating effectively. That’s how you free up time to focus on strategy, growth, and the bigger picture.
Here’s some practical advice to help make that shift:
• Make sure everyone knows their role and what’s expected of them.
• Use team meetings to make decisions, not just share updates.
• Hand off routine tasks and let your team take ownership.
Empowering your team doesn’t just lighten your load—it builds a stronger, more scalable business, and you avoid the Highland Scalability Trap
Grow Selectively and Strategically
Effective scaling isn’t about doing everything; it’s about doing the right things. Find opportunities that match the outcomes you are striving for. This focused approach leads to manageable and sustainable growth.
Sustainable Growth is successful, growth for good.
The goal is to build a business that operates smoothly without needing constant input from you, the founder. Well-built systems support sustainable success and stability.
Real-world Example:
Graze Snacks built robust operational and IT systems from the outset. This helped drive rapid growth and resulted in a successful acquisition by Unilever (Financial Times).
Recommended Further Reading
- “Scaling Up” by Verne Harnish: Useful tips to steer clear of typical business growth mistakes (Scaling Up).
- MIT Sloan Management Review: The article “Why Entrepreneurs Don’t Scale” explains why SMEs struggle to grow effectively and emphasises structured processes (MIT Sloan).
Embracing these strategies can make your business growth rewarding, manageable, and sustainable. This aligns with our Growth for Good principles. Let’s build better businesses that avoid the Highland Scalability Trap.
