Scaling Small to Medium-Sized Businesses (SMBs) - Part 2: Growth vs Scaling
In terms of scaling, we need to define the difference between Growth and Scaling.
Growth vs. Scaling
Growth
The company adds new resources (capital, people, or technology), and its revenue increases as a result.
While mathematically, this makes sense, the reality is that it often creates more problems than it solves. As an example, as a startup or small company grows, one of the early symptoms is that the team can no longer fit in a single room, and the founder/CEO can no longer manage everyone. You need to start thinking about organisational structure (to deal with the challenges of communication), establishing new roles (eg: product manager) and ways that those roles work together (processes) and systems to support those roles / processes. And as the company continues to grow, further changes are required, eg: Head of Product.
Scaling
When revenue increases without a substantial increase in resources. This can be achieved by changing the way the company operates to not only be more effective (doing the right things), but more efficient (doing the right things well).
Regardless of which method(s) you use, you need to focus on the way the company operates. If you don't, then the challenges will mount up, and the situation will only get worse.
Part 3 will describe Ways of Working, emphasising what is important to enable a company to grow and scale.
If you would like to have a chat about your company, where it is in its journey, and the challenges faced, feel free to reach out.
Cheers
David