Scale vs. Growth (What every entrepreneur should know)
Scaling and business growth are not necessarily the same thing, and getting the two confused could set you up for disaster. To experience continuous growth without the overwhelm (or losing your life to your business), it’s important to know which phase of business you are in.
Two Phases of Expansion
Phase 1 – Growth
Growth is all about finding the techniques and strategies that work for your business. You may not be able to replicate them in on a mass scale, but you can lay the foundation for scale while going through the growth process.
The Growth Phase is all about increasing revenue, while still figuring out the exact processes and strategies that will lead to long-term success.
Phase 2 – Scale
Scale is all about creating systems around proven techniques so that other people can facilitate your growth. Activities such as running ads, building a team, and introducing a low-ticket offer are all part of the game during this stage. However, it’s important that you have a solid foundation of proven systems and processes before you attempt to scale. If you don’t have a proven process, you can’t scale it.
The Scaling Phase is all about accelerating and fine-tuning the processes and strategies that cause growth. In reality, scaling is all about increasing your capacity, which in turn increases the amount of revenue your business is able to bring in.
Use Your Stage To Determine Your Strategy
Most entrepreneurs fail to grow their business because they try to scale before their business is ready. Things like ads, low-ticket offers, and team building are all important for long-term success; however, those same activities will also accelerate failure if attempted before growth is solidified.
Instead, practice the old adage that “Less is More.” First focus on serving fewer, but bigger clients so that you can charge a premium price. This will give you the financial foundation to invest in your Marketing, Sales, and Service Delivery systems, making scaling an easy process when the time is right.