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SCALING VS. GROWING

Home / Strategy / Scaling vs. Growing


SCALING VS. GROWING

By MarketingScaleurs inStrategy

After the technology boom of the past decade. The most successful companies have
shown that the path to success isn’t all about growth. It’s about scaling
(scaling vs. growing). They’ve learned how to create business models that easily
scale to generate massive revenues without adding massive costs and resources
along the way.

Many entrepreneurs are often confused by the difference between scaling vs.
growing. Growing means a marketing department adds new resources (capital,
people, or technology), and its revenue increases as a result. For instance, a
marketing department may gain $50,000 in new revenue, but in order to do so they
had to hire a new marketing person with a $50,000 salary. The company’s gains
and losses are evened out, so even though the company is growing—by one new
employee and a corresponding uptick in revenue—it really hasn’t gained much
value.

Scaling, on the other hand, is when revenue increases without a substantial
increase in expenditures. Processes “that scale” are those that can be done in a
cost-effective manner. Scaling is the process of growing exponentially. A
marketing department that spends $5,000 on marketing automation tools to allow
more efficient marketing to a wider audience, gaining $50,000 in new revenue as
a result, is scaling. The company’s gains outpace its losses, allowing it not
only to grow but also to scale. Other examples are being able to go from
handling 5 clients to 500 or sending out emails to 10 people or 1 million,
without a major increase in cost or labor.

Your marketing business scales when it can cope with an increase in work while
maintaining or increasing its efficiency.


SCALING VS. GROWING: SCALING BENEFITS

When it comes to scaling your marketing business, here are some great predictors
of success:

 * Predictable revenue – do you have a standard outbound and/ or sales process
   and systems in place? Having a playbook that describes what you have to say
   on your first call versus your third call if you want to reach out to new
   customers. The same goes for LinkedIn messages or emails. Make a playbook.
 * Subscription-based services – do you have systems in place so every year you
   start the year with money in the pipe? One example is a yearly or monthly
   subscription of your service/tool, conform the DashIQ 
 * Having diverse income streams – don’t bet on one income stream only. You can
   get money from a product you offer, a service/consultancy, or providing a
   training/academy, etc.
 * High customer retention rates – know that 20% of your customers produce 80%
   of your sales. Repeat customers spend more, generate larger transactions, and
   bring in business by word of mouth.
 * Creating a value ladder of products for your customers – this allows you to
   cater to your customers’ needs. E.g., at the very bottom of the value ladder,
   create free content in exchange for customers’ email addresses. As clients
   ascend the ladder, the value level increase as does the cost to play. E.g.,
   you give a free PDF download about the 5 biggest mistakes scaleurs make when
   scaling their marketing team. Then you go for an eBook – How to Reach the
   Scaleur Mindset for $19. Further up the ladder, you can market an online
   training course – How to Scale Up from 1 to 1 billion for $99. From there you
   can go for the one-year program for $999, ultimately end with coaching for
   $2,500 per year.
 * Having dedicated KPIs that you can track on a dashboard – this is your visual
   success panel for the company. Focus on key indicators instead of tackling
   everything at once.

Companies scale their marketing business when their revenue increases and their
marketing and operating costs remain static. If a company increases their
revenue but increases their costs at the same rate, then that business is not
scaling.

In order to find scalable aspects in your marketing model, you must first locate
the aspects of your marketing business that can be replicated quickly and cost
effectively, while still building a strong marketing organization.

 

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BECOME A SUCCESSFUL SCALEUR

I hope this blog will prove to be helpful in your endeavor. After all, Scaling
vs. Growing is a strategy that can only be mastered by a scaleur who is an
ardent learner and considers real-time business priorities.

Marketing Scaleurs is a scaling company helping entrepreneurs scale their
marketing efforts. To accomplish this, we help businesses strive and succeed
with growth marketing, product development, and more. How do we do it? We create
custom growth plans for startups, entrepreneurs, and scaleurs in order to help
them gain traffic, generate leads, and increase their revenue. If you want
traffic, leads and sales, send an email to Marketing Scaleurs today, and you
will start getting results in no time

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    12 August 2020
    
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