Lack of scalability in a business refers to the inability to grow or expand operations efficiently while maintaining or improving profitability. If the current infrastructure can't handle increased demand, businesses may struggle to scale. If a business relies heavily on a small team, scaling operations can be difficult without hiring and training new employees.

A lack of strategic vision or ineffective management can impede growth efforts. Poor marketing tactics can restrict customer acquisition, making it hard to attract a larger customer base. Inflexible or inefficient supply chains can lead to delays and prevent businesses from meeting increased demand. Processes that aren't streamlined can lead to bottlenecks.

High fixed costs can make it difficult to increase profit margins as production scales. If adding new customers significantly raises total costs, the business struggles to become more profitable. External factors, such as economic downturns or changes in consumer preferences, can also limit scalability if the business cannot pivot quickly.