How often do you hear buzzwords like scalability and accelerated growth in recent years? They are often referred to as synonymous terms when discussing the common business goals. However, the truth is that although they do share similarities, they are also vastly different. But whichoneof these two goals is better to focus on?
Before we jump into the details of growth and scaling, it is best to differentiate these two terms.
In simple terms, scale is the process of a business increasing its revenue without the costs rising at the same rate. So, it comes to down margin and profitability. Growth is of course, important and a great sign the business is succeeding. However, growing your customer-base, output or turnover could also mean a significant rise in costs and expenditure.
Tony Robbins says: “Business is a sport for gladiators” but in this arena, there is one main measure of success that stands well above all others. That is Scale. Most of today’s businesses are measured by their growth, but if costs rise at the same trajectory, or higher, it could put the business in troubled waters. Scaling always trumps growth, as it refers to locking in your costs and letting the business grow unrestricted and free of spiralling overheads and expenditure.
What Should You LookForWhen Scaling?
According to the Growth Institute, your scaling if you growing are growing at double the rate in the industry but expenses year on year must remain stable and do not exceed the set budget.
However, even in your early-stage start-up, you should be focusing on scaling. It should be among the first thing in your business plan.
TipsOnSuccessful Scaling
Not all businesses have high scaling prospects. There is also no clear set path to a highly successful scaling process. Businesses that are outsourcing or have the SAAS model tend to have better results, but there is no set pattern or formula.
While not all businesses are scalable, there are a few tips that could help with the scaling prospects of your business. These are very reasonable, logical, and applicable tips to achieving success. Not to mention, the simplicity of their nature adds to the positive impact that they might have on your business. Not all of them apply for one size fits all type of business and the industry is a huge factor as well. But here are some general tips on how to improve your scaling prospects.
- Have a solid foundation.
Whether it is a solid team, a nice CRM, or highly powerful software for your e-commerce business. Having a good foundation will be a huge asset in your future, and it presents a solid foundation for future scaling prospects.
- You should put your focus on a scalable business model.
We already mentioned that not all businesses have that option, but when starting your business, you should invest in a business model that offers the option to scale. It is a mindset that will keep you one step ahead of your competition.There is also the opportunity to pivot or tweak your existing model so it can become more scalable, the best businesses are continually evolving and diversifying.
- Keep your employees happy but also your customers.
This is a no-brainer and should go without saying, but happy employees will eventually result in happy customers. Happy employees are more valued, respected, work much harder and are a lot more loyal.
- Scale your business with outsourcing.
Much like the scaling process itself, outsourcing will make your entire business process a lot more efficient and cost-effective. In its most basic terms, outsourcing is a business practice in which business functions or operations are given to a third party. Whether it is an individual that’s being outsourced, an entire team or a core business process, outsourcing can give you access to skills, people and expertise at a low cost. There is the need to pick the right outsourcing team with experience, but the outsourcing model can be a great tool for efficient scaling as it’s focused on keeping costs down while not compromising on quality and improving output.
You can put your trustinCauseway connect, the scale masters…
At Causeway Connect we’ve got 20 years’ experience in helping businesses scale. With a highly regarded business centre in the heart of Skopje, the capital of Macedonia, we help companies reduce costs, improve output and grow their business without the overheads rocketing. Our size and infrastructure means we can make outsourcing accessible for smaller businesses through shared resource, equally comfortable outsourcing an entire team for larger organisations.
Leave your details today for free outsourcing quote and consultation with one of our scale specialists and plug into the power of Causeway connect.