Why scaling is better than growth for your business

Growing your business means adding parts. More clients, more employees, more desks, more anything. 

Scaling your business means that your revenue increases, but your resources stay about the same. 

More clients, but without more of everything else. 

Why scaling is better than growing

If doubling your client numbers means doubling the resources you need to support them, then your business isn’t making you any more money. 

This of it this way:

A bakery has two employees, one is serving customers and the other one bakes the pastries and manages inventory in the back. The maximum number of clients they can serve is 100 in one day, and they have reached that capacity: every day they serve 100 clients. 

They would like to serve 101 clients. But to do that, they need more pastries and more people assisting the front of the house. 

They hire two people.  

Now they have increased their revenues by 1% while increasing their expenses by 200%

How to scale: with systems

A solid business does not have a 1:1 relationship between growth and resources. 

Create a business that will allow you to double your client base without forcing you to double your resources. 

Create the systems, the tools, and the training that allow a business to scale. 


Learn how to analyze risk and opportunity in your business plans with my online course:

Balancing Risk and Opportunity in Business