What is tax planning? Essentially, tax planning is something you do to put your business into the best possible tax position. After all, nobody... Read more
‘Scalable growth’ has become quite the buzzword in the past few years, but what does it actually mean and what are the possibilities for small to medium size businesses?
Many people think scaling is the same as growing, but there is a bit more to it:
Growth: investment in additional resources produces a proportionate increase in revenue.
Scale: investment in additional resources produces an exponential increase in revenue.
Here is the difference displayed visually:
Scaling & Technology
We hear the word ‘scale’ discussed a lot in the world of technology, particularly software and cloud computing. The reason is that these businesses are able to deliver a product/service to the globe (via the internet) very quickly and at a relatively low cost. They have fewer manual inputs and man hours which means extreme revenue growth is possible with minimal to no upfront investment.
Of course, we do still hear about significant investments being made in these technology companies (i.e. Uber, Airbnb and Netflix), and that is because there is a race to scale the fastest. The investors know that whoever scales the fastest is the most likely to dominate the market.
What does this mean for small local business?
Even if you aren’t determined to build a global tech giant, the principles of scalable growth are still applicable.
In everything you do, consider how ‘scalable’ the activity is. If you aim to double your top line think about how you could do it without a significant increase in costs.
This mindset will ultimately help you to innovate and build a future-proof business model. The reality is, if your business model does not scale, there is another business out there whose does… and this is called disruption (another great buzzword, but that’s for another time).
So, how do I build my service or product for scalable growth?
Sean Ellis is a “Growth Hacking” expert from San Francisco with extensive experience in scalable growth. Look for his video lessons on YouTube, but here’s a quick overview of his strategy, which was integral to the scaling success of Dropbox, Eventbrite, Lookout and more.
Sean’s “Growth Hacking” strategy is broken down into 3 parts:
Contact us today if you want to get scaling!
Phillip Cross, Royce Cross Agencies
Kerri Stutley, Tumby Bay Foodland