CEO’s want to grow their companies, because they desire the approval of their success from their peers, their family, and their community.
They focus on various popular and academically sound growth strategies in pursuit of their goal.
In recent times their has arisen an alternative or parallel goal of “Scaleup” which is both similar and different.
Growth is focused on growing the sales line in the financial statements at the same time as adding resources to keep up with the growth in sales.
This model is based upon adding the resources needed to deliver additional sales based on historic relationships between sales and costs.
Scaling means adding sales but with the additional resources needed to meet these increased sales, being at a lower rate than the historic business model.
This may seem counter intuitive, but it is not. It presumes that it is possible to add sales at a lower marginal cost of sales by intensifying the use of resources as the sales rise.
The benefit is that the profitability and cash generation of the business increases.
If you want to scale your business book an appointment below.