How to Create the Perfect Growth Strategy for Your Startup
It begins with understanding the difference between growing and scaling
To grow or to scale?
This is one of the toughest decisions entrepreneurs grapple with. But guess what, most founders get it wrong all the time. Case in point, they don’t understand the difference between scaling and growing.
Scaling involves increasing revenue without a substantial increase in resources while growth is the increase in revenue as a result of adding new resources(capital, people, or technology).
Why does it matter?
Scaling can be done with minimal effort. For instance, when a business transitions to cloud platforms, it can reach more people with little need for more resources. In contrast, growth is a capital-intensive process that requires additional employees, offices, capital, etc. It takes a lot of resources and adjustments to sustain constant growth.
Businesses need to understand when to grow and when to scale depending on the dynamics of the industry. Choosing to adopt either of the two bears unique repercussions that can determine the trajectory of the business.
