What does it mean to scale a business?
23.5 هزار بار بازدید -
6 سال پیش
-
You probably heard the term
You probably heard the term “scale a business” and perhaps you’ve even uttered the words as in “I’m looking to scale my business”, but do you really know what this buzzword means? Today we’ll take a peek at the difference between growing vs. scaling because it’s not the same thing!
Growing a business simply means that your company is adding resources or infrastructure to handle increased demand, at a cost which is more or less equivalent to the level of increased revenue coming in. You’re growing revenue, but not necessarily profit.
Scaling a business happens when you’re generating greater revenues, but without incurring a similar increased level of cost . At this point profits should be soaring.
So if you were able to quadruple your revenue without adding a single employee, that’s scaling.
But if you generated $100k in additional revenue, but it took $80k in additional staff, infrastructure, and marketing, you generated an additional $20k in profit, but this wouldn’t be a good model for scaling.
So if you want to know if your business is scalable, you need to dig into what you’re selling. What can be reproduced at a rapid rate without generating increased costs?
Often you’ll hear about scalability in the tech industry. Let’s say you’ve developed an app. The difference between 10,000 users and 100,000 could generate a huge shift in revenue, but it might not cost that much to manage those 100,000 users well. You follow?
But even if you aren’t a tech company, there are still ways to build scale in your business. A few examples are to…
Standardize the things you offer so they are more easily repeatable by you & your team.
Establish recurring revenue with existing customers & client so you’re not constantly hunting for new business.
Automate processes that currently require a lot of human-touch.
Questions? Thoughts? Let us know what kind of growth you’re pursuing with your business!
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WORK WITH US
🙌 Business Growth Coaching with Hilary Johnson 🙌
If you’re an established business owner with a big vision for your business and big goals to match, let’s talk! I work with a handful of one-on-one business coaching clients to help them build the strategy & implement the work to grow & scale their businesses to multi-6 and 7 figures.
https://www.hatchtribe.com/businessco...
🌴Join us LIVE at a CEO Retreat 🌴
Our bespoke, curated retreats for women entrepreneurs & business owners are the perfect opportunity to work ON your business versus IN it. Surrounded by other passionate women entrepreneurs & business owners, you’ll be guided through powerful work and play sessions to help you tap into your bigger vision, your mission, and your impact.
https://www.hatchtribe.com/retreats
💪 Join the CEO Sanctuary Mastermind 💪
If you currently run a multi-6 or 7 figure business, and you’re looking for a powerful group to support your growth, this is for you. The CEO Society is an elite mastermind group for established women entrepreneurs & business owners who are on a mission to increase their income & impact…and RISE into their highest potential!
https://www.hatchtribe.com/mastermind
______
CONNECT WITH US
💌 https://www.hatchtribe.com/
💚 Instagram: hatchtribe
Growing a business simply means that your company is adding resources or infrastructure to handle increased demand, at a cost which is more or less equivalent to the level of increased revenue coming in. You’re growing revenue, but not necessarily profit.
Scaling a business happens when you’re generating greater revenues, but without incurring a similar increased level of cost . At this point profits should be soaring.
So if you were able to quadruple your revenue without adding a single employee, that’s scaling.
But if you generated $100k in additional revenue, but it took $80k in additional staff, infrastructure, and marketing, you generated an additional $20k in profit, but this wouldn’t be a good model for scaling.
So if you want to know if your business is scalable, you need to dig into what you’re selling. What can be reproduced at a rapid rate without generating increased costs?
Often you’ll hear about scalability in the tech industry. Let’s say you’ve developed an app. The difference between 10,000 users and 100,000 could generate a huge shift in revenue, but it might not cost that much to manage those 100,000 users well. You follow?
But even if you aren’t a tech company, there are still ways to build scale in your business. A few examples are to…
Standardize the things you offer so they are more easily repeatable by you & your team.
Establish recurring revenue with existing customers & client so you’re not constantly hunting for new business.
Automate processes that currently require a lot of human-touch.
Questions? Thoughts? Let us know what kind of growth you’re pursuing with your business!
---
WORK WITH US
🙌 Business Growth Coaching with Hilary Johnson 🙌
If you’re an established business owner with a big vision for your business and big goals to match, let’s talk! I work with a handful of one-on-one business coaching clients to help them build the strategy & implement the work to grow & scale their businesses to multi-6 and 7 figures.
https://www.hatchtribe.com/businessco...
🌴Join us LIVE at a CEO Retreat 🌴
Our bespoke, curated retreats for women entrepreneurs & business owners are the perfect opportunity to work ON your business versus IN it. Surrounded by other passionate women entrepreneurs & business owners, you’ll be guided through powerful work and play sessions to help you tap into your bigger vision, your mission, and your impact.
https://www.hatchtribe.com/retreats
💪 Join the CEO Sanctuary Mastermind 💪
If you currently run a multi-6 or 7 figure business, and you’re looking for a powerful group to support your growth, this is for you. The CEO Society is an elite mastermind group for established women entrepreneurs & business owners who are on a mission to increase their income & impact…and RISE into their highest potential!
https://www.hatchtribe.com/mastermind
______
CONNECT WITH US
💌 https://www.hatchtribe.com/
💚 Instagram: hatchtribe
6 سال پیش
در تاریخ 1397/07/23 منتشر شده
است.
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