“To begin, think about how to put parameters into place to form a successful business, and then, figure out how to remove yourself from the operation. Franchising is one example. Of course, before you can franchise something, you need to do it yourself a few times to see what the issues are and if there is demand,” said Saxton.

“A great example of a successfully franchised, scalable business is Orangetheory Fitness. It started as one person’s personal training approach. Ellen Latham started with one gym. It had a lot of success, so she expanded the number of gyms and then franchised the idea. Now there are an estimated 500 locations across the country. That’s a scalable business,” she added.

The key to move a small business to a scalable startup is deciding how to remove yourself.

So, if you want to start your own business, here’s what Saxton recommends.

First, you have figure out what product or service you are going to offer. Then, you need to determine how to sell it. Your business model is your story of who your customers are and how you are going to deliver value to them in a way that makes money. To be scalable, you may need to try several alternative business models to figure out which makes the most incremental revenue at the least incremental cost.

Kim Saxton hosted a StartUp Study Hall through the group, The StartUp Ladies, at the Kelley School of Business on IUPUI’s campus. It focused on this topic – building a scalable business. For more information on future StartUp Study Halls, click here.