Growing a business is not the same as scaling a business. Although they may seem very similar, there is a big difference between the two terms that we as leaders or future leaders need to know in order to focus on one or the other and, int his way, have a successful business.

As entrepreneurs we aim to grow operations, sales, products, services and operational systems, but to scale we need the right mindset of those who are willing to become truly excellent entrepreneurs.

Let’s get to know what growth and scaling up is all about:

Growth

The growth of the company symbolises the increase of your income, the increase of your market share and the expansion of your team. However, at the same time you will also increase your business expenses, as you will need to make an investment in order to secure the subsequent cash inflow. As you grow, you spend what you generate, so uncertainty grows within your business, which can paralyse your operations, destabilise your team and make leadership much more difficult.

Scaling

Scaling, on the other hand, creates stability in all areas of the business. Revenues will rise above expenses, giving your business the oxygen it needs to have a consistent cash flow to fund and support your business. The level of restlessness will be significantly reduced and you will feel more encouraged and productive.

With all this you will have the opportunity to hire a good team, invest in necessary tools for your business and resources that you could not previously afford. When you are scaling up you get your financial life back!

The 4 keys to the Scaling Up methodology

If you are new to this methodology, you don’t need to worry! Here are the top 4 keys to take into account to achieve a successful Scaling Up:

1. Make a proper study to place the right people in the right positions.

Your team unit is the group of people who will promote or stall your venture. Every consultant has probably heard too many times people say phrases like “if I could I would fire all my employees”, “I’m exhausted of the unsolvable problems”, “I shouldn’t have hired them” or “my team is discouraged”.

Our businesses need a well-articulated, intelligent, aligned, team-oriented workforce that is able to operate in a coherent and successful manner. As entrepreneurs and leaders, we need to play smart chess rather than Chinese checkers. The difference is that in the game of checkers all the pieces move in the same way, whereas in chess each piece moves in a different way, which will result in bringing into play the different strengths of your team.

The best thing to do if you want to have a good team is to ask yourself and answer the following questions:

How can I have the best team?

How can I keep my team motivated in times of difficulty?

How can I keep my team aligned when everything seems confusing?

How can I have a team of committed workers?

2. Use a simple strategy that will help your industry grow twice as fast.

Coming up with a good strategy is a key to scaling your business. Keep in mind that if you don’t have a powerful and effective strategy, you are likely to spend years following an ineffective plan and miss out on countless opportunities, giving your competitors an excellent chance to take control of your industry.

There are a number of indicators that will let you know if you have a strategy that can take control of your industry and differentiate you from your competitors:

– Your customers continually struggle to purchase your products or services.

– Your company consistently shows signs of exponential growth.

– Your customers recommend your products on a regular basis.

3. Make sure you have a replicable model

Being able to execute your strategy continuously and in a disciplined manner is a fundamental pillar of growing your business. Systematically carrying out your strategy, without problems or mistakes that cost you money and time, will allow you to achieve an even three times higher profitability.

Simply put, without efficient and disciplined execution, you will never be able to determine the true scope of your strategy. You may have thought of some of the following situations:

– Problems occur frequently in your company: shipments are late, there are equipment problems, there is no proper control of invoicing. 

– Despite the effort and money spent, the planned results are not achieved.

– You continually feel that more and more of the company’s responsibilities are falling on you.

These are all elements that indicate a poor level of execution of your strategy, so if you have identified with any of them, it is time to change the way you execute different projects.

4. Always strive for cash flow conservation and efficiency.

It should not be forgotten that cash is the oxygen of any business, being an important factor for scaling up. It is essential to have sufficient availability of resources to be able to operate smoothly, take advantage of the opportunities that come your way or even be able to deal with any crisis that puts your company at risk.  That is why it is not uncommon for the most successful and efficient companies to have cash reserves capable of keeping it afloat for at least 6 months. In fact, it is the most advisable thing to do.

How to grow your cash reserves today? The world’s leading economic experts say that, if gross output is reduced by 25% from a total of 120 trillion euros, there will still be an output of 90 trillion euros. This is even more than the production of the year 2019, which means that, even with the current situation, there is a significant amount of businesses capable of generating a good amount of money, as long as you have the right entrepreneurial mindset.

With the changes that the world is currently experiencing, it is important for business leaders to ensure that they achieve flawless efficiency in most of their operations to ensure that they have a solid business.

Therefore, if you focus on and implement these four keys, we are confident that you will be able to overcome the current adversities and make your business scale smoothly.

Scaling your business with EPBS

We are well aware that this is not an easy task to accomplish, as it involves a lot of analysis, time and knowledge. So if you need help in the process of getting your business to scale significantly in the market, EPBS is your best choice.

Contact us and make your business scale significantly!