Scaling is reducing the variability in your offer, so you can get more done with less effort.

Scaling is reducing the variability in your offer, so you can get more done with less effort.

Business owners are always generating new ideas to grow their business, but is growing right for you? Or, should you be scaling your business instead. 

There is a difference between the two.

When you grow your business, you need to add more resources such as adding new technology, capital, or employees with the hope of generating more revenue.

When you scale your business, you find ways to increase your revenue – without increasing the cost of new resources.

I think I know which one I’d work through first.

Growth – Most people try to grow their way through to increase business.

Oftentimes business owners keep adding more resources and services to try to get more done. Does that feel like a bit of a gamble? Increasing growth translates into increasing resources. When you’re focused only on growth, you will find that financial growth is achieved by taking larger losses. 

Scaling – A more modern approach (especially in today’s economy) to driving business is through a business scaling strategy. 

The main difference between growth and scaling is that you increase your revenue, without incurring a ton of extra cost. To lower the risk (not that I’ve ever been scared off by risk!), look at what you already have. What can you repurpose? What can you repackage? How can you change your communication? 

Scaling brings efficiencies to increase profitability to your business. Take a good look at what you have. What is a scalable approach for you?

As always, I am wishing you health & wealth.

-Mike