Growth vs. Scaling: What’s the Difference? Why is it Significant?

September 27, 2021

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The difference between growth and scaling is that one leads to the other. Growth leads to scaling, and you can’t scale without first having growth. Scaling involves repeatable, predictable growth. which can be an expensive process for companies with stakeholders not on board. What's the best way to scale? For most organizations, it's by looking at what they're doing well and how they can improve within this framework. But if you want to grow your company or organization, then you need a plan that will help you step up your game in order to reach new heights.

According to research by Compass, many companies are not scaling correctly. The research found that the top reason is because of lack of communication within their organization or team.

But how does growth affect your company’s scaling prowess? And why is it significant for the success of your business?

Understanding the difference between growth and scaling is important if you want to grow your company or organization. It's not just semantics; it’s about strategies and objectives that will help move the needle for your business.

It is crucial for business owners to understand the difference between Growth and Scaling because these two terms are often used interchangeably in daily conversation. The simplest way to explain them would be this: growth refers to an increase or expansion of something while scaling refers to improving performance through increased efficiency at larger levels of size and scale.

Growing your business and growing revenue is great, but it may also bring complexity and, as a result, more work. Scaling your business is all about creating efficiencies that allow you to accomplish more in less time.

However, growth is not necessarily about scaling. It means something different and should be considered as such when you are looking at the next phase of your business' development.
So how can you both grow and scale up your business?

Scaling a business can seem like a never-ending endeavor because the more you grow your business the more opportunities you'll have to continue to grow. For example, when you are hiring new employees or adding features to your website that allows for more customers, these are all pieces of scaling a business.

However, growth is not about this type of scale at all. Its origin implies something bigger and better than what it has become today in the SaaS industry.
 
The ability to maximize revenues while retaining the same level of work is the most important distinction between scaling and growth. Reach out if you want more details on this - always happy to share ideas.

About the Author

Gloria Gunn

Co-founder - LinkedSure

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