As a small business owner, your eyes are always on the horizon, always looking for the next opportunity. You’ve mastered the early steps of launching your brand, and now you’re asking the next big question: how to scale a business without losing momentum.
Growth is good, but growth isn’t always sustainable. That’s why we’re talking about scaling—growth that is deliberate, long term, and fully in your control.
To scale sustainably means going in with a plan and being prepared to handle any challenge that’s thrown your way. It’s the difference between getting a sudden spike in sales and having every process falling apart and getting a sudden spike in sales and being able to handle every order smoothly with great customer service to boot.
It takes planning, expertise, and sometimes funding to get it done. We’ll walk you through how to craft an iron-clad plan for your future.
What is business scaling?
Business scaling means increasing revenue faster than costs. It’s a form of growth where your operations, tools, and processes allow you to take on more demand without needing to match it with equal increases in time, money, or headcount.
It means your systems, not your team, absorb most of the extra workload. It should let you build a foundation that lets you grow efficiently while keeping your margins healthy and your operations steady.
Understanding the scale versus grow business difference helps clarify this.
- Growing often requires more resources including more staff, inventory, or space to support higher revenue. Costs rise at roughly the same pace as sales.
- Scaling focuses on smarter processes and technology that let you expand without those proportional cost increases. You’re able to fulfill more orders and support more customers with the same, or only slightly more, resources.
Scaling is a more strategic approach to business growth, helping you increase revenue without adding unnecessary complexity.
For ecommerce brands, scaling often looks like better inventory planning, connected sales channels, streamlined operations, and automation that removes manual work. Done well, it creates a sustainable path to long-term growth without overwhelming your team or your budget.
Meet your experts
Say hello to two brands that have successfully scaled their business from humble beginnings. We interviewed them for practical advice on scaling that you can apply to your own business.
Katie McCourt, co-founder of Not Basics (formerly Pantee)
Katie and her sister Amanda are the brains behind Not Basics (formerly Pantee), a line of underwear and bras made exclusively from dead-stock t-shirts and t-shirt fabric. They launched in February 2021 after a successful Kickstarter campaign and have only grown since, adding new products and seeking further investment to keep up with demand.
Sustainability is at the heart of Not Basics and plays a role in every part of its supply chain. The brand’s challenge is staying true to that ideal while scaling up.
Matt Mundt, founder of Hug Sleep
Matt started Hug Sleep with an idea, a dream of entrepreneurship, and $2,500. The Hug Sleep is known as the blanket that hugs you back—a cozy, soothing experience based on the science of weighted blankets. The company has exploded since Matt founded it, thanks in part to an appearance on Shark Tank, where he and his wife, Angie, walked away with a $300,000 investment.
Matt has had to grapple with a rapid increase in demand for what started as a solo venture he worked on after his corporate job ended for the day.
When is a business ready to grow?
Growth doesn’t just need the right plan, it also needs the right timing. Growing too quickly can lead to expenses you can’t pay, employees you don’t actually need, or a supply chain that’s grown out of control. Conversely, trying to scale at the wrong time could mean orders you can’t fulfill and tasks going unfinished.
Here are a few questions to ask yourself to help you decide if it’s time to make a plan for sustainable scaling.
Are you ready for the next step in entrepreneurship?
You should only take your business to the next step if you’re truly ready for a bigger enterprise. Scaling up means your company is going to take more time, resources, and expertise that you have to be prepared to give. Scaling up is an exciting time, but you’ll need a level head to get it done in a way that’s sustainable for your business.
Ask yourself:
- Are you ready to take on more strategic challenges? That could mean expanding your product lines or selling globally.
- Will you be able to dedicate more time to your business without other parts of your life suffering?
- Do you have the financial resources available that you’ll need?
- Do you need outside help? You may be at a point where having someone else handle marketing or customer service would make your day easier.
- Do you need more employees to get the work done? Struggling to make your business work with your current team—which might be a mighty team of one!—is a great sign that it’s time to scale up.
- Are you having trouble keeping up with orders? Having a higher volume than your business is prepared to handle means falling behind on packaging and deliveries, customer service gaps, and a whole lot of stress for you.
- Are you falling behind on inventory? If you’re constantly finding yourself sold out, with customers clamoring for restocks, it’s definitely time to scale up.
Lastly, some businesses are meant to be small businesses. It’s OK if you want your side hustle to remain a side hustle. It all comes down to your personal priorities, lifestyle, and financial situation.
6 steps to scale your business
There’s no one formula for scaling a business, because every business—and founder—has unique strengths and challenges. Scaling up a clothing business, for example, is going to look different from scaling up a skin care empire. But there are some common threads to consider:
1. Make a plan for your future
If your company started as a hobby, like in Matt’s case with Hug Sleep, you may have just been going with the flow up until this point.
However, to scale sustainably, you need a business plan. It will not only help you understand your business, but it will be something you’ll need to show if you ever seek outside investment.
As you scale, this plan expands into something more specific: a scaling plan.
A scaling plan outlines how your business will grow and what it will take to support that growth. Alongside your core business plan, it should include:
- A timeline with clear milestones for the next 12 to 36 months
- Resource requirements, such as team roles, operational upgrades, inventory needs, and tech investments
- Success metrics you’ll track as volume increases—like revenue targets, order capacity, or customer support benchmarks
- Risk contingencies for supplier issues, cost spikes, or unexpected demand
- System and process documentation, so workflows stay consistent as you grow
There are different ways to format a business plan, but a basic one should include:
- Executive summary
- Company description
- Market analysis
- Management and organization
- Products and services
- Customer segmentation
- Marketing plan
- Logistics and operations plan
- Financial plan
Within that, you’ll also be creating a strategic marketing plan, with a forecast for the future outlining your plans for growth. What’s a realistic revenue goal for a year from now? What about five years from now? What’s your plan for increasing your marketing capacity?
This is where the SMART framework can help—setting goals that are specific, measurable, achievable, relevant, and time-bound makes sure those targets are clear and actionable.
“That was actually a really valuable part of the process for us—sitting down and saying, ’Where do we want to be? Where do we want to be in five years? What do we see from this business? And where do we think it can go?’” says Katie.
“I think that, from day one, we’ve really felt that Not Basics has huge potential to become a household name brand.”
Nail down where your business is right now, as well as where you want your business to go. To scale your business successfully, you need strong operations and a clear sense of your next milestones.
Use the resources below to get started and consider the next steps in scaling as you create your plan.
Key takeaway: Scaling starts with clarity. Define your direction, document your systems, and map the milestones that will get you there.
2. Evaluate your supply chain
Scaling up means a higher volume of sales, and your supply chain needs to be equipped to handle that. What works right now might not work as well at scale.
Not Basics, for example, was originally inspired by creating underwear from thrifted t-shirts. They then turned to dead-stock t-shirts, but they can actually be slower to process. Already-made shirts take longer to cut and evaluate for quality, so the brand has since expanded its source materials.
“We don’t just use the dead-stock t-shirts, we also use dead-stock rolls of fabric,” says Katie. “It’s the exact same grade of material, it’s just taken at a different point in the supply chain.” The fabric rolls allow for faster production but with the same commitment to sustainability. It’s even become a feature—getting their hands on a particular color lets them create a limited-time collection drop that customers snap up.
Not Basics goods are manufactured in Bangladesh at a factory with working conditions that Katie and Amanda vetted, but going overseas might not be the right move for your supply chain.
Matt scaled Hug Sleep while remaining with the same manufacturer in his home state of Wisconsin. In fact, a more local approach can help ease the stress that global instability has placed on global supply chains.
As you scale, go beyond sourcing decisions and evaluate your supply chain using a few key benchmarks:
- Lead times. Can suppliers reliably deliver materials on time as your order volumes grow?
- Inventory turnover. Are your current production and stocking speeds fast enough to avoid cashflow bottlenecks?
- Supplier relationships. Do you have strong communication, clear terms, and backup suppliers if demand spikes?
- Quality consistency. Will your current processes maintain the same standard when production increases?
- MOQs (minimum order quantities). Can your suppliers support larger runs, and do their MOQs align with your cashflow?
In either case, evaluate whether your current sourcing and manufacturing processes still function well at scale. If not, you’ll need to figure out next steps.
Key takeaway: A scalable supply chain is predictable, resilient, and built on partners who can grow with you.
3. Hire strategically
Scaling up means you may no longer be able to do everything yourself, or with whoever you’ve recruited so far to make your business work.
Katie says No Basics has been running for the past year or so with just her and her sister as full-timers, supported by contractors. With a round of investment under their belts, Not Basics is about to take on its first full-time employee.
Specifically, they decided the most impactful choice was to hire someone to take care of brand and community management.
“Our strategy is very heavy on influencer marketing, ambassador marketing, and our partnerships, and it’s a very, very time-consuming element of the business,” says Katie. Taking that workload off Katie and Amanda means more time back to focus on the core of the business.
If hiring is part of your scaling strategy, you should hire where an extra person would be most effective. For No Basics, it was marketing, but for your business it could be someone to work on product, customer service, or sales.
Employees are a major financial commitment, so they should focus on an area that will bring in the most return. Before hiring, make sure your internal processes are documented and clear.
As you scale, bringing on in-house staff can unlock several advantages, including:
- Deeper ownership. Employees develop long-term knowledge of your brand, systems, and customers.
- Faster execution. Full-time staff can manage ongoing work without the lag time that often comes with contractors.
- Stronger consistency. In-house roles help maintain brand voice, quality standards, and operational rhythm as you grow.
- Cross-functional support. Employees can flex across projects, helping reduce bottlenecks during busy seasons.
- Improved collaboration.: Daily communication strengthens decision-making and speeds up problem-solving.
“We’re really excited to see what we can do with an extra 40 hours a week put toward the business,” says Katie.
Key takeaway: Hire where extra hands create the biggest impact, and make sure every new role moves your business forward, not just faster.
4. Outsource for efficiency
If it doesn’t make sense to hire your own employee, there are ways to outsource tasks to streamline your business as you scale. Matt, for example, doesn’t have any full-time employees. Instead, he uses an agency to handle all his marketing because he realized it was something a third-party would be better at.
“My background is in mechanical engineering,” he says. “I’m a numbers guy and a data guy. I thought there’s no challenge that I can’t get over.” So Matt tried to teach himself how to launch ads on Facebook, Instagram, and Google.
“I tried, and it didn’t work all that well.”
By talking to agencies, Matt finally realized that they could create a more sophisticated campaign than he could, so he outsourced.
He also hit a wall on order fulfillment. He used to pack all the orders himself and drop them off at the post office on his lunch breaks. But that doesn’t work at scale. He now uses the Shopify Fulfillment Network to do the heavy lifting.
Whether hiring an agency or an employee, you should consider where you most need help. If you’re struggling with marketing a small business, it’s only going to get more challenging as you scale up. Decide what aspects of your business would benefit from expertise you don’t have and look into third-party services that can help you out.
Stay business focused by outsourcing tasks that pull you away from strategy and product.
As businesses scale, the most commonly outsourced functions include:
- Marketing and paid media (ad management, creative production, influencer campaigns)
- Fulfillment and logistics (3PLs, Shopify Fulfillment Network, shipping coordination)
- Customer support (live chat, email support, outsourced help desks)
- Bookkeeping and accounting (payroll, financial reporting, tax prep)
- IT and technical support (website maintenance, integrations, security)
- Content creation (product photography, video, copywriting)
- Product development or manufacturing (specialized production, prototyping, QA)
Resource: Find the expertise you need with Shopify’s network of expert partners.
Key takeaway: Delegate tasks that drain your time or require specialized expertise, so you can stay focused on scaling the heart of your business.
5. Automate where you can
Getting things done faster or more efficiently at scale can be made easier with tools designed to automate your workflow.
These can be simple fixes, like how Matt created scripted responses to deal with a heavy influx of customer service inquiries after he appeared on Shark Tank.
Another example for streamlining customer service is using Shopify Inbox for communicating with customers. This tool allows you to use live chat—which is an effective way to increase conversions—in a way that keeps all your conversations in one place, allows for saved responses, and gives you metrics so you can track impact.
As your business grows, automation becomes even more valuable when your systems talk to each other. Look for ways to use these tools to connect:
- CRM tools to keep customer data, purchase history, and segmentation up to date automatically
- Inventory management systems that sync stock levels, automate reordering, and prevent overselling
- Accounting software that pulls in orders, payouts, fees, and expenses without manual entry
- Marketing and sales tools that automate email flows, retargeting campaigns, post-purchase messaging, and abandoned cart reminders
The goal is to remove repetitive tasks so you can reinvest that time in product, customers, and strategy.
Check out these handy bots to learn more about how to automate your business.
Key takeaway: Automate repeatable tasks and connect your tools—freeing your time to focus on high-impact work as you scale.
6. Seek new capital
Scaling costs money, and you might need to identify the right time to seek outside investment to see your plans through and keep your cash flow flowing.
That timing is crucial. Capital is something you want to secure before you act on plans to grow, rather than when your business takes off and you’re left scrambling for the funds to support it. This is also when you need to monitor cash flow closely and think about working capital management—ensuring you have enough liquidity to cover inventory, payroll, and operating expenses during periods of rapid expansion.
Katie knew early on that No Basics would need investment beyond that initial Kickstarter campaign.
“With what our goals were, and the sort of early traction that we had seen, we knew very early on that it was not something that we could do ourselves and continue to bootstrap,” she says. “As much as it really works for some businesses, I think, for ours, it was just too out of scope for us.”
Last September, Katie and Amanda started trying to raise the £200,000 ($261,000) they projected they’d need.
“It’s a difficult process. I think that we both found it to be one of the most challenging things that we’ve done,” she says.
The pitching process means having a solid plan (which is why a business plan was the first step) and fielding question after question from potential investors. Expect some ups and downs—Katie said some pitches went better than others, but they did reach their goal in the end. Once they started hearing yes, it gave them confidence to go out and pitch more.
Matt, on the other hand, made a big splash by appearing on Shark Tank. The show actually approached him, and he walked away with a $300,000 deal from two of the sharks.
Alongside stories like those from Hugsleep and No Basics, it’s helpful to understand the different types of funding available and which situations they suit best:
- Revenue-based financing. Flexible and fast, ideal for ecommerce businesses with steady sales who want to avoid giving up equity. Repayments rise and fall based on revenue.
- Small business loans. Traditional loans work well if you need predictable repayment terms and have strong financials. Good for equipment, inventory, or expansion.
- Angel or venture investment. Best for fast-growth brands willing to trade equity for capital, expertise, and connections. Works when you need a large upfront injection.
- Business lines of credit. Helpful for working capital management, covering seasonal dips, inventory purchases, or short-term cash needs.
- Crowdfunding. Perfect for early-stage brands with a compelling story or product. It doubles as marketing and early customer validation.
- Grants. Non-dilutive funding that doesn’t require repayment—great for innovation, sustainability, or minority-owned businesses, though competitive to secure.
Capital is something Shopify can help with. The Shopify Capital program is a way to secure funds that skips lengthy applications and allows you to repay using a percentage of your sales. Since 2016, Shopify Capital has made more than $3 billion available to thousands of Shopify merchants, and our data shows that shops with this funding average 36% higher sales.
We also know that women and people of color have more trouble securing capital, and Shopify Capital is working to close that gap. Funding options like these are designed to provide fast access to liquidity while supporting financial risk mitigation—so you’re not dependent on any single source of cash.
Key takeaway: Choose the funding option that aligns with your goals, cash flow needs, and risk tolerance—secure capital early so your business can scale with confidence.
*Shopify Capital loans must be paid in full within a maximum of 18 months, and two minimum payments apply within the first two six-month periods. The actual duration may be less than 18 months based on sales.
Common scaling mistakes to avoid
Scaling can unlock major growth, but it can also expose cracks in your business if you move too quickly or without the right foundation.
Here are some of the most common mistakes merchants make while scaling, and how to avoid them.
Scaling before product-market fit
If customers aren’t consistently buying, loving, and recommending your product, scaling will only magnify the issues. Before expanding, make sure you have clear demand, strong repeat purchase behavior, and a brand message that resonates.
Ignoring cash flow while chasing growth
Revenue spikes don’t matter if your cash flow can’t support larger inventory orders, higher ad spend, or longer production runs. Many businesses grow on paper but run out of cash in practice. Monitor cash flow closely and plan working capital needs before you scale.
Hiring too fast without systems
Adding people won’t fix operational gaps. If you hire before documenting workflows, setting expectations, or defining responsibilities, you’ll create confusion instead of efficiency. Build the systems first, then bring in people to run them.
Neglecting what made your business work initially
As businesses grow, it’s easy to drift away from the core brand, product quality, or customer experience that built your early momentum. Scaling should strengthen your foundations, not replace them.
Treating scaling as purely operational
Scaling isn’t just about fulfillment, automation, and staffing. It also requires strategic thinking including clear positioning, strong financial planning, and a road map for sustainable demand. When scaling becomes only an operational exercise, growth can stall quickly.
Don’t lose the big picture
There’s a reason you’ve gained the traction you already have, and you can’t lose sight of it, even as you scale.
Long-time customers of No Basics are drawn to its commitment to sustainability, so the company remained committed to that philosophy. To do away with any of that while scaling would defeat the purpose of trying to grow your business and impact.
Katie says No Basics doesn’t see its relationship with customers as purely transactional—they’re a community. The brand’s early customers, the ones who’ve come along for the whole journey, are a pillar of support that have helped it get where it is today.
“Don’t undervalue your community,” Katie says. “Ask them for guidance to really bring them on that journey. It does really pay off.”
Do right by your biggest fans and they’ll stick around as you shoot for the stars.
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How to scale a business FAQ
What does it mean to scale a business?
Scaling a business means increasing its ability to grow and generate revenue without being constrained by its structure or available resources. This involves expanding operations, optimizing processes, and leveraging technology; for example, investing in automation tools, entering new markets, or improving supply chain efficiency to handle larger volumes.
How do you know when to scale a business?
You’re ready to scale when your business has more demand than your current systems can comfortably handle. If you’re struggling to keep up with increased demand, it may be time to scale.
Many business leaders scale only after they’ve validated demand and built strong internal systems.
Look for signs like:
- You consistently sell out or struggle to keep up with orders
- Customers return often and your product has clear market traction
- You have steady, predictable revenue—not just seasonal spikes
- Your operations feel stretched even though you’re working efficiently
- You can forecast growth and have the cash flow to support it
Scaling should feel like the natural next step, not a reaction to pressure. If you have strong demand, repeatable processes, and enough financial stability to invest in growth, you’re in a good position to scale.
How much capital is needed to scale a business?
There’s no fixed number—it depends on your industry, growth goals, and how quickly you want to scale.
In general, you’ll need enough capital to cover:
- Larger inventory orders
- Increased marketing spend
- Additional staff or contractor support
- Upgrades to tools, systems, or equipment
- A cash buffer for unexpected costs
Many merchants plan for three to six months of operating expenses before scaling, while others raise a specific amount based on projected milestones. The best approach is to map out your scaling plan, estimate the cost of each step, and make sure your cash flow and working capital can support that investment.
How to make a business scalable?
A business becomes scalable when it can grow without its costs growing at the same pace.
To do that, focus on:
- Strengthening your operations. Document processes, improve workflows, and remove bottlenecks.
- Automating repetitive tasks. Use tools for inventory, customer support, marketing, and accounting.
- Building a reliable supply chain. Choose suppliers and manufacturers who can handle higher volume.
- Investing in the right people. Hire or outsource roles that directly support growth.
- Improving financial systems. Monitor cash flow, plan working capital, and choose funding options that support expansion.
- Focusing on product-market fit. Ensure strong demand and customer satisfaction before you scale further.
Can a business scale without technology?
It’s possible, but very difficult. Most businesses need some level of technology to scale smoothly.
You can grow manually for a while, but as order volume increases, technology helps you:
- Track inventory accurately
- Automate customer support and marketing
- Manage fulfillment and shipping
- Keep financial records up to date
- Connect sales channels and customer data
Without these tools, you’ll spend more time on admin work, your costs will rise faster, and mistakes become more likely.
