Confusing growth vs scale can lead to business disaster
Announcement posted by The Audacious Agency 10 Mar 2017
Businesses are paying the ultimate price by confusing growth vs scale when it comes to growing their venture.
Mihir Thaker, director of The Missing Link, said for a business to be sustainable they need to focus on the four key stages. “These stages are launch, grow, sustain and scale. too often businesses confuse growth vs scale and consequently pay the price in the short and long run,” he said.
“The repercussions are early burnout of much needed cash in the business leaving no room for long term growth, unable to hire good resources in the business and serious possibility of exiting the business in under 2 years.”
“More than 21,000 new businesses started up over the past year, and many of these are not focusing on the basics. This can lead to a quick exit out of business.”
Mr Thaker said regardless of the size of the business, the four stages need to be strategised and executed correctly to reach full potential.
“People think that growing by (percentage a year) is a positive sign; and it can be but if there are not strategies to manage this growth; systems and processes in places and a vision for the future, it makes it hard to scale the business,” he said.
“I run workshops to help people understand the difference between growth vs scale so they can stay in business longer and be more profitable.
“Aspects of growth businesses need to consider are: key dimensions of growth (intangible vs tangible), key dimensions of scaling (intangible vs tangible) and when & how to scale?”
Mr Thaker has been working with Fortune 500 companies and executives assisting with the development and execution of business strategies for medium and large enterprises and entrepreneurs and help them be externally and internally successful.
Over the last 10-years he has worked extensively with clients in Fortune 500 companies across Australia and the USA such as Orange, Sprint-Nextel, Louis Vuitton, CBA and Telstra along with many smaller sized companies in an executive and business coaching capacity.
“Growth is about adding revenue and growing the bottom line but that is sustainable for only so long,” he said.
“If you grow too fast, it is like getting trapped in the wrong size body because the business is not ready for what comes next – increase demand, need for better structure, increase staff and resources.
“Putting in place process to scale means putting in place plans for financial stability and for sustainability.
“It is important to remember, building a successful company is not about growth, it is about scale.”
Check out his upcoming workshop in Melbourne on 16th March at The Churchill Club at this link http://www.churchillclub.org.au/events/2017/3/16/growing-scaling-workshop