- In the modern business world, few ideas are more important than growth.
- Even long-time stock market fixtures like McDonald’s and General Motors are judged by their quarterly growth rates.
- Failure to grow can be a disaster
- Businesses need to build a product, create a strong brand identity, establish a market, and then they can think about hypergrowth.
Growth vs scaling up
- In general, we think of growth in linear terms: a company adds new resources (capital, people, or technology), and its revenue increases as a result.
- By contrast, scaling is when revenue increases without a substantial increase in resources.
- Processes “that scale” are those that can be done en masse without extra effort – if I send an email to 10 people or 1 million, my effort is essentially the same.
- Enterprises use email marketing so heavily. It scales so effectively.
- For example – an insurance company that scaled business operations by simply switching to a cloud business phone system.
Growing a business
- The definition of growth for a successful company refers to increasing revenue as a result of being in business.
- It can also refer to other aspects of the enterprise that are growing, like its number of employees, the number of offices, and how many clients it serves
- It takes a lot of resources to keep growing though.
- For example, if you make the best Pav bhaji in India, you have to pay for resources that’ll let you make the same for a longer period of time.
Scaling a business
- The key difference with growth is that scale is achieved by increasing revenue without investing significant costs.
- While adding customers and revenue, costs should only increase as your company gets older, if at all.
- A great example of a company that’s successfully figured out how to scale is Google, which in recent years has been adding customers (either paying business clients or ad-supported free users) while being able to keep costs at a minimum.
To know more about growth and scale and examples of how to scale up, do read the entire article: https://blog.spendesk.com/en/growth-vs-scaling
If you are a business owner and looking to scale your business but you’re also a curious cat who has a lot of doubts/questions that need to be answered, we hear you and invite you to our QnA panel where you can get 3 questions of your choice answered for free by industry experts, here’s a link that’ll take you there:https://sncoglobal.com/#q&a
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