Looking to scale your business? Research from McKinsey 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.
Before diving in with an ambitious scaling plan, it’s important to really understand the market you’re operating in. Consider the current health of the economy: in times of recession, consumers watch their spending more closely which you should factor in when exploring new opportunities. It’s also important to research your competitors. Knowing what they’re offering – and just as importantly, what they’re not – will help you identify where your business.
