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Business Growth vs Scaling

In business what is the difference between Growth and Scale


Is generally referred to as being an increase in business revenue, it can of course also specifically refer to an increase in employees, locations, subsidiaries, customers or profit. However all of the aforementioned are almost always intrinsically linked to an increase in revenue. As such unless specified, revenue is considered the benchmark measurement for business growth.
The challenge is, generally an increase in growth consumes a huge amount of resources in order to be sustained. An example would be:
    • Increase in customers
      • This could mean increased costs in areas such as; marketing, sales people, administration, service delivery, finance and so on.
As a result business growth can be a very tricky balancing act, and often to grow, the business must be willing to accept that investment and potentially short term losses could be necessary. This is mainly why businesses should also consider scale as a way to increase their businesses.


Business Growth 2020 vs 2019
2020 Increase 35%



Because of the costs often associated to growth, many businesses look at how they can scale.

Scale is a way of increasing the business revenues without increasing ongoing costs. If scale has been achieved successfully, the business will see an increase in revenue, and only see an increase in costs exponentially if at all.

The most successful names that we all know of which scaled in a hugely successful way are the likes of Facebook and Google. These businesses managed to increase users, and therefore b2c reach and b2b marketing revenues, without the significant overheads required as we would normally expect to see it.

This type of scale was achieved with very careful planning, and recognising the value and importance of investing in systems and development, rather than pure people power. The benefits of this type of approach were that they could scale as demand increased, but Artificial Intelligence (AI), Digital Automation, and Robotic Process Automation (RPA) ensured the reliance of ongoing resourcing overheads as scale continued.

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