ScaleUp Mindset vs Growth Mindset
Posted on 4th May 2022 at 11:24
It is worth taking a moment to make the distinction between growing and scaling - it's a mindset change that separates those that scale from those that do not.
Growth is simply increasing the size of the business in a ‘linear’ fashion, by which I mean if the turnover increases by 10%, so do the costs and therefore the bottom line profits. The key thing about this is that any ‘headaches’ you have in the business simply get magnified. It can take a lot or resources to sustain constant growth. Most business ‘consultants’ focus on growth and not scale and whilst this can be effective in the short term, it does not necessarily create the kind of business that gives the control and freedom that most business owners are looking for.
Scaling on the other hand, implies that we are able to increase top line sales/ revenue at a faster rate than costs. This comes back to the mindset of thinking about the ‘stepping stones’ in our scaleup journey and planning for what the business needs to look like at the next stepping stone and what needs to happen in-between to get us there in terms of Strategy, People, Execution and Cash.
What we call the ‘business model’ plays an important part in the strategy here to ensure that we do have a model that can scale effectively. Adopting a scaling mindset rather than a growth mindset will lead to a more valuable business, one that is more resilient and more fun to run – helping us to achieve that freedom and control we are looking for.
If we want to create an enduring business then we need to create good ‘habits’ in the business.
At the heart of ESUS (The Entrepreneurial ScaleUp System) is what we call the ‘Business Rhythm’ – this is the heartbeat of the business or the lifeblood and is the most fundamental ‘habit’ within the business.
To realise the full benefits of ESUS and to order your copy of Kevin's new book visit the site here!
This month's ScaleUp Club taking place on the 7th of June will be discussing Business Rhythm in much more depth. Join us! Register here.
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