Growing? or Scaling?

They're not the same thing. Be sure you know what you're doing when you want to make more.

Have you really clarified your outcome?

Do you really know where you want to end up with your "growth initiative"?

Which of these alternatives fit your scenario?

  • Get that big contract
  • Hire more people
  • Focus on sales
  • Support a regional, national or international expansion
  • 5x or 10x your business

There are a lot of reasons to "grow" your business. But one thing is certain... Everybody on your team needs to be pointed in the same direction.

For decades, the conventional wisdom in many sectors was that bigger was better. The larger you got, the argument went, the more likely you were to achieve market dominance.

Except that, as PwC's "Strategy& Team" discovered, in some businesses there is no direct correlation that can be drawn between being big and achieving higher shareholder returns. That's a startling conclusion.

So, how should companies decide whether they need to get bigger? Should they even bother? For many, the decision to remain artisan or to work within defined boundaries is an absolutely valid strategy; it enables them to define what matters to them, and to work within those parameters.

But, for those companies that do decide to increase their presence, here are some key factors to consider.

 

Here are 4 considerations for determining which is right for you - Growth or Scale

  • Growth and scaling are different things

    A key issue is that growth and expansion are too easily confused.

    Growth is all about adding percentages here and there around the business. Scaling is different. It’s a process driven approach to growth. No longer is the business concerned with growth for growth’s sake, but only with growth which can be managed.

    in seeking to scale a business for example, you are looking to change not just the pace and scope of growth but also the manner in which that acceleration takes place. Growth and scale demand different management styles and therefore different types of leadership, while the pace at which expansion takes place also requires careful judgment. 

    Expand too fast, and the business risks becoming over-extended; expand too slow and the company risks stalling as others react and/or the business cannot keep pace with demand. And scaling demands a different set of actions than growth, it follows that it springs from a different mindset.

    One of the key questions that is asked too seldom is: “Does our company have that mindset?” If not, it may be better, and more profitable, to focus on growth.

  • Define your outcome, and make decisions from there

    The decision as to whether to grow or scale comes down to the definition of success that you have set for yourselves in your strategy. As Jeremy Melis, UPS’s marketing director for small businesses, told The Balance, “The goal is to best position your business to achieve what you’ve defined as success. That could be revenue growth, geographic expansion, a community of loyal customers or a better quality of life for yourself and your employees.” 

    As in all aspects of strategy, the key concern is why, not what or how. Growth or scaling should be the means, not the end.

  • Should you scale?

    What questions should you ask yourself to determine if you should scale or grow?

    The company BrandAlive – interviewed over 50 companies and clients. They discovered that the decision to pursue scale was about much more than aspiration. It was “a conscious decision to achieve critical weight in the markets that they were focused on because otherwise they risked being unable to achieve their goals.”

    Think of it this way. If the outcome you’re seeking is greater than 2x the number of sales or revenue; or greater than 2x in manufacturing, operations or service, you’re probably thinking about scale. If your outcome is less than that, you’re likely considering a growth strategy, set of tactics and resources.

  • If Your Outcome is to Scale, how do you begin?

    Start with culture.

    Companies that are serious about scaling their presence must understand that their ability to do so hinges on their ability to shift and coordinate new thinking internally at the same time as they look for opportunities and new customer relationships externally.

    In point of fact, in order to deliver on that, the business itself must change mindset. In order to achieve a change of scale at requisite speed, particularly in a digital setting, an organization today needs to start by realigning its technology infrastructure to handle the new levels of customer interactions that will come. It will also need to invite new people into the business to make the new scaled process work better, develop new ways to ship faster and more diversely and reset its success metrics so that it can accurately gauge performance against its highest strategic goal and act/react accordingly.

  • If Your Outcome is to Grow, how do you begin?

    No matter your industry, your competition is likely excelling at something that your company is struggling with. Look toward similar businesses that are growing in new, unique ways to inform your growth strategy.

    Invest in talent. – Your employees have direct contact with your customers, so you need to hire people who are motivated and inspired by your company’s values, vision and value proposition. Be cheap with office furniture, marketing budgets and holiday parties. Hire few employees, but pay them a ton.

    You need to adapt your plan to smooth out your business’s inefficiencies, refine its strengths and better suit your customers — who could be completely different than those from a vague, one-size-fits-all strategy.

    Your company’s data should lend itself to all your strategic decisions. Specifically, you can use the data from your key indicators and revenue streams to create a personalized growth plan. That way, you’ll better understand your business and your customers’ nuances, which will naturally lead to growth.

The Perceptive Business System™

The Perceptive Business System is a suite of products and services that empowers you to build a real relationship between you and your stakeholders (customers, clients, employees, suppliers etc.) in a completely personal way. 

It does NOT require you to change your successful business practices. If followed properly, it IS going to give you the tools to find your unique place in the market, your unique messages and build your business based on your value to your stakeholders.

And the result is dependent on you. Growth? or Scale? Either way, you'll experience higher sales conversions better stakeholder relationships, improved business processes and more revenue.

Here's what is included in this simple system!

The Perceptive Business Process™ - is a 5 step process that results a customized business strategy, marketing strategy, operations system, along with a unique corporate and product communication system. Perceptive clients are armed with processes, tools and mentorship that empower entrepreneurs to find ideal clients, generate profit quickly and scale their business.

  • Readiness Assessment

    This tool was created over 30 years and the result of working with thousands of entrepreneurs. It helps us identify the entrepreneurial mindset areas we’ll monitor during our work together.

  • Business Systems Assessment

    This tool walks you through the different departments of a company. We review your existing business processes. The result of this tool is a realistic assessment of the systems you have in your business right now.

  • Business Skills Assessment

    This tool is about the skills of the entrepreneur or business owner. The results of this tool is an assessment of your skills in eight different skills categories.

  • Relationship Foundations

    This tool explains why and how to properly connect with your stakeholders. The result is a “completely you” Unique Selling Proposition (USP) and Unique Values Propositions (UVP). From the marketing and sales side, your results will compel your ideal client to want to work with you.

  • Defining Your Market

    Your product or service may be able to transform an industry. But you can’t do it all at one time. As the old story goes, “ How do you eat an elephant? … One bite at a time.” This tool shows you how to segment your market and identify each segment’s characteristics. We’ll show you how to phase your product in to these markets so that you don’t exceed your capabilities.

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Frequently Asked Questions

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Perceptive Consulting

Our passion and our mission is to help all small business owners have their own successful business - however you define that. Because when you're successful, you're better able to assist others around you. And when we're all pulling together like this, we can make a significant difference in our communities.

We come on-site and deliver our Perceptive business tools in a one-on-one fashion. We will commit to a specified number of consulting hours per month, depending on your wants/needs. Our consulting commitment is divided into several different steps.