What Is The Difference Between The Growth Stage And Scaling Stage In Business?

What Is The Difference Between The Growth Stage And Scaling Stage In Business?

Hi, welcome to what would Charlotte do.

Where I am answering some of the most common questions that I’m being asked. And today is all around a question that I’ve been asked a lot more recently. What Is The Difference Between The Growth Stage And Scaling Stage In Business?

So there’s one big difference here, that takes you from the growth stage through to the scaling stage. And that big difference is that when you’re going into the scaling stage, you’re able to scale your business. So, you, grow your business without increasing your operating costs. That’s one of the main reasons and the main differences between the growth stage and the scaling stage.

You may be thinking, but that’s impossible

What this means is that you are able to scale you’re able to get more money, more revenue from either existing customers or new customers. But you’re not having to either take on new team members or pay for new software, pay for new automating pay for additional things in order to serve that customer.

When you are in the growth stage, it’s one of those stages that a lot of people get stuck in.

They kind of never go past the growth stage

Because that’s the hard stage to get through. That’s where you start to get a lot of hurdles. You start to get a lot of resistance. Get busy, you start to kind of start thinking whether or not this is the right thing for you. Start getting that kind of crisis of confidence coming through as well.

And that all happens when you set up your business to start with. And ultimately, most people set up their business and they set it up with the main focus being on getting sales in. You want to get that client, you want to get that customer. And you want to get those increased sales and those repeating sales coming through. Which everyone would want to do. But what they found they should do is really look at where they want their business to be. They don’t look at the longer term.

Looking at the long term of where you really want to be, do you want the business to just be you

And that’s it, maybe a team member just helping out occasionally? Or do you want it to be that you are leading the business, so you’re not doing a lot of the work, you have a team doing the work. But you are leading it through which that is a scalable business, and that’s going to be a business that you’re going to push through. But with that comes a lot of hurdles.

I run an agency so I get these hurdles coming through. I’ve been there I’ve seen it, I’ve dealt with it. And, and it’s a really hard place to be because you’re in that stage where you’re kind of tidbit in so you’ve got the kind of regular money coming through, you’ve not got a comfortable amount coming through.

Maybe your margins aren’t too small, or maybe your pricings a bit out

But you get in that stage where you really need to power on through and you need to ultimately then take the risk, or the jump however you like to look at it in order to really grow and pursue your business to where you want it to be.

When you’re in that growth stage, a lot of people don’t want to take the bigger risks that other people are taking, that then enables them to really step into that scaling stage. And one of the other reasons that people end up getting stuck is they either don’t have the business systems in place.

So they end up in this chaotic mindset of not knowing what’s happening, not knowing what to do constantly reinventing the wheel, which is exhausting. Or they have business systems in place, but they’re not scalable. So what they’ve got in place aren’t going to help them scale their business forward. Because when you get into that scaling stage, you are really then stepping into the leader.

You need to have business systems in place and scalable ones that don’t mean that everything is going to have to come through you

So if you create a business where you are the bottleneck for everything, so if you’re the bottleneck for approvals if you’re the bottleneck for clients coming through, if you’re the bottleneck for customer service, or any solution providing or any errors that may have occurred. If you’re that person that needs to be contacted for all of those parts, you’re not going to be able to lead your business.

When you don’t have scalable business systems in place. It is when it really starts to crash and burn or fall apart, as people would say

So making sure that you really understand that difference between the scale in stage and the growth stage really starts from looking at where you want that business to be. And you might be saying, but I’ve had my business for a few years now, how can I start this?

Again, it’s, you know, I’ve got where I am. And it’s not to say that you need to start again, it’s just to say that actually looking at where you want the business to go now, and where you see it going?

So where you want it to be? Do you want to have…

• An office? 
• Employees? 
• Staff? 
• Managers?
• Maybe sell the business at some point?

Making sure that you’re really clear on those goals means that you are then going to be better placed to create a business that’s going to be scalable, and sustainable.

So it’s not going to fall apart, if you are off for a month, or if you have to take a couple of weeks off, it’s not going to fall apart, you need to make sure that you have a business that can continue to run, even when you are not the person that’s making sure that everything’s getting done.

I hope that’s helped with What Is The Difference Between The Growth Stage And Scaling Stage In Business? And I hope that’s kind of clarified some questions around the scaling and the growth stage. But of course, it is a huge topic. So I’ve only covered a real small part of it today. But if you have any other questions around maybe growth scale in business systems, incorporating scalable business systems, then do let me know just send me a message and I will get around to answering your question. 

What Is The Difference Between The Growth Stage And Scaling Stage In Business?