Looking to scale your business? Research from McKinsey1 found that only 22% of new businesses launched in the decade to 2021 successfully scaled. But – they obviously didn’t read this article! Dive in as we run through practical tips and strategies to help you scale your business successfully.
What does it mean to scale a business?
Scaling a business can sometimes be confused with growing a business. Though there are similarities between the two, there are also key differences:
Growing a business is when a business adds/invests in new resources – such as team members or technology – and thus increases its revenue at the same rate.
Scaling a business is when an enterprise identifies ways to operate more efficiently so that it increases its revenue without substantial spend on new resources. It takes thoughtful and strategic planning to succeed; the goal is to create sustainable growth that doesn’t compromise the business’s quality or culture.
Common mistakes made by businesses trying to scale include doing so too fast or too early – such as when a new business is still establishing its core goals/product lines/customer profiles.
Though scaling up your business emphasizes increasing revenue with minimal investment in resources, there are some areas where you will need to spend. It’s about strategically allocating resources – time, money, technology – to where the biggest Return on Investment (ROI) will be achieved. Once you have defined your priorities for scaling, you can balance that with your budget.
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Though scaling up your business emphasizes increasing revenue with minimal investment in resources, there are some areas where you will need to spend. It’s about strategically allocating resources – time, money, technology – to where the biggest Return on Investment (ROI) will be achieved. Once you have defined your priorities for scaling, you can balance that with your budget
