A few key indicators can help you determine if a business model is scalable. First, look at the product or service offering and ask yourself how you could deliver it to more people without compromising quality. If there are any production or product development limitations, it is only scalable to a certain point, after which you would have to invest in additional resources. The level of scalability depends on how significant those additional resources have to be, and how quickly they can become profitable. For instance, an ecommerce company investing in a new production facility is considerably more expensive than a SaaS company switching to a tiered pricing structure.