If you want to grow as a company, you should not do so without a plan. Because sooner or later, what you missed at the beginning will catch up with you. When it comes to building a sustainable business, you should have a structured organization in the background that can cope with rapid growth and grow without having to completely rebuild existing structures. Roman Finke from torq.partners told us what is important for a scalable financial organization.
What does “scalable” actually mean and what do you need to consider?
A scalable finance organization refers to a structure within which a company can grow as quickly as possible without costs in the back office skyrocketing. A company in which costs grow in proportion to revenue is ultimately not profitable. At the same time, it is no use relying on rigid structures right from the start, but then having to upgrade processes and personnel evenly as the company grows. The motto therefore is
constant costs with growing sales.
To achieve this, processes and structures must be stable, but at the same time remain dynamic and flexible in order to keep up the pace with the growth of the company.
After all, requirements fluctuate quickly, especially for start-ups and scale-ups: The pitch can change, there could be a strategic change of direction. Therefore, under no circumstances should you get completely bogged down before Series A, because that can create higher setup costs and even bigger problems in the worst case. To build a scalable finance organization, you should focus on flexibility and maintain growth options. At the end of the day, this will enable scaling to build a profitable business.