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Scaling up Success: From Growth to Scaling

Scaling is a very specific type of company growth which isn’t right for everyone. To understand why, let’s explore the difference between growth and scaling as often both terms that are frequently used interchangeably.

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With growth, a company’s primary focus is on improving product quality or increasing profitability. This results in linear growth, growing the company steadily. Imagine you’re playing a video game. At first, you’re just trying to get through the levels, collecting points and power-ups. That’s like a business in its growth phase. It’s focused on getting better and making a profit. If you draw this growth on a graph, it looks like a steady uphill climb.

The purpose of scaling, on the other hand is to achieve accelerated growth. In most cases, this means sustainably but quickly increasing a company’s market share. Scaling is often referred to as exponential growth. Imagine you find a secret in the game that boosts your character to super-speed, zipping through levels like a pro. This is what scaling is like for a business. Instead of just moving forward, it’s shooting up and expanding really quickly. On a graph, scaling looks like a ‘J’, with a small dip before shooting upwards.

When scaling successfully, you seek to secure growth that is sustainable over a long period. A leader who scales a commercial business will have the sale of products or services on their mind.

Defining a Scale-Up

A common accepted definition originally penned in the Scaleup Report is: A scale up is an enterprise with average annualised growth in employees or turnover greater than twenty percent per annum over a three-year period, and with more than ten employees at the beginning of the observation period.

The Challenges of Scaling

Scaling is a complex and rigorous process which requires careful planning and a powerful team. Scaling demands that leaders put aside their visionary qualities, which isn’t easy. Most entrepreneurs aren’t natural scalers; they enjoy autonomy and flexibility which are typically entrepreneurial qualities and the reason many enjoy the start-up phase. But an organisation that’s being scaled has different requirements to one that’s finding its feet.

Reality Check: Is Scaling for You?

Scaling is much more process-driven and is typically mundane and repetitive, which can in turn frustrate the entrepreneur. For this reason, if you’re going to scale, you need to be aware of these factors to see if the reality of scaling is right for you. I recommend that you evaluate your expectations. If you’ve built a start-up, you may be used to a fast pace and so growing at 20 percent may seem very slow.

Scaling is primarily operational and administrative, and it takes time to put the systems in place, which is something you must accept if you commit to scaling. You might feel discouraged, after I’ve told you that your amazing entrepreneurial talents won’t guarantee successful scaling. But it’s better you know this before you begin, so you can decide if it’s the right next step for you.

Once a business grows beyond the start-up phase, we need to make decisions in a more considered manner. Teams must be part of the decision-making process, even if you still wish to have the last word.

Guiding Principles for Thoughtful Scaling

Data Reverence

Treat data as sacrosanct and refrain from assumptions.

Inclusive Guidance

Seek counsel and collaborative decision-making.

Expert Advice

Leverage professional wisdom around you.

Humility in Leadership

Recognise the capabilities of others.

Delegation Mastery

Empower others through shared decision-making.

Ready for the Next Level?

For an entrepreneur, one of the biggest challenges is learning to take a moment and carefully consider decisions. This involves taking the time to analyse data, consult with colleagues, and research solutions, rather than relying solely on instinct.

Fortunately, taking time to make thoughtful decisions doesn’t mean you’ll slow down your progress. Rather, it ensures that your choices are built on a solid foundation, making every step more impactful.

Scaling a business goes beyond chasing a grand vision; it necessitates a focus on the finer details. This shift can be challenging for visionary entrepreneurs who must now hone in on specifics.

So, are you prepared to take on the challenge of scaling?

Safaraz Ali, Author of “Successfully Scale Up or Exit Your Business”, Creator of the ScaleEzee Framework

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Safaraz Ali, Featured in the Business Influencer Magazine