March 11, 2020
I love growing businesses, but scaling them is way more fun 🙂
What’s the difference between ‘scaling’ and ‘growth’?
GROWTH is where you add resources at the same rate as you’re adding revenue.
SCALE is about adding resources at an incremental rate to the rate of your revenue growth.
Growth is hard. But scaling is harder.
Why?
Because you need to be SMARTER with the kind of revenue you bring on, with the products / services you sell, and with how you manage the business to get more out of your resources while driving extraordinary growth.
What does it take to scale up a business?
You need a marketing machine that brings new leads into your sales machine around the clock.
You need a sales machine that converts those leads into revenue at an above average rate.
You need a revenue model that has net positive growth every month (recurring revenue models are best for this).
You need to deliver an awesome product / service that people love so your attrition rate (aka churn rate) stays low.
And you need to manage the business effectively so you keep costs low as a percentage of your revenue growth.
So yeah…
It’s DAMN HARD to scale a business but it’s the ultimate goal of all fast-growing companies (and what any business looking to drive massive growth should be going for as well).
Director + Co-Founder at Webprofits
Alex Cleanthous is Director + Co-Founder at Webprofits, Australia’s #1 DTC and ecommerce marketing agency. He’s spent over 20 years helping brands scale faster through smarter strategy, sharper creative and relentless testing. Alex also hosts the Growth Manifesto Podcast, where he interviews the world’s top business minds about the strategies that drive real, lasting growth.
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