Scaling means you are growing your business with minimal increase in cost. It also means you work less while making more money. Consider these scenarios below. Which category do you fit in?
- Two business owners provide a similar service. One creates a custom package for each client. She has a large team and while her business has grown, her costs have increased with her sales. The other business owner has 3 packages clients choose from. Her discovery call and onboarding are automated. She has a small team, keeping her costs low while sales have grown. She is scaling her business.
- Another two business owners who also provide a similar service. One charges by the hour for the work he does. He works about 50-60 hours per week and has started to subcontract work when he cannot or does not want to take it on. He pays his subcontractor half of what he charges and pockets the rest. The other business owner charges flat monthly rates. He raises his rates as he gets too busy, but does not track how much time he spends per client. Of course, the best clients are the low maintenance ones but he loves what he does and likes to support the high maintenance ones too.
We all know what it means to grow a business. But growing sales does not necessarily mean you are growing your business. Your costs may be growing equally as fast. One major risk in this approach to growth is that your additional sales could dry up quickly, but it’s harder to offload costs. So when your business takes a dip, you may struggle to recover in time.