Growth means adding revenue at the same pace you’re adding resources; scaling means adding revenue at a much greater rate than cost. Growth companies earn a valuation of 5-8 times EBITDA whilst Scaling companies earn a valuation of 10+ times EBITDA. Companies that are scaling have the resources to: Dominate their category, attract the best and brightest team members, and disintermediate challengers.
So what stalls business growth? Over time, there are periods when sales growth slows, profit margins get squeezed, or return on assets in general decreases.
The first reaction is to work harder. When working harder didn’t work we decide to work smarter by trying to optimize the operations of the business to increase profit margins. When this provides marginal returns we decide to redesign our sales and marketing efforts. We soon realize that those sales and marketing efforts also are doomed to marginal returns as our competitors recognize our efforts and match them. We come to grips with the hard truth that our effort must be placed into rethinking the entire business model.
And that’s where it gets hard.
SmartScale℠ is an answer for midlife companies that want to rapidly increase equity value. With deep-insight analytics, you gain a granular level understanding of your audience – enabling you to clearly define the jobs that your audience comes to you to have done.
SmartScale℠ is an answer for midlife companies that want to rapidly increase equity value. With deep-insight analytics, you gain a granular level understanding of your audience – enabling you to clearly define the jobs that your audience comes to you to have done.
SmartScale℠ ensures a transformation from current performance to sustained scaling. SmartScale℠:
At ScaleWerks™ we’ve been at the forefront of change as thought and implementation leaders our entire careers. We know that change is not a single initiative … and Scale is not a program; Scale is a way of seeing the world – it’s a paradigm – it’s a lifestyle. And like any healthy lifestyle, it can be learned, internalized, and be a source of life-fulfilling energy.
According to a McKinsey Corporate Performance Analysis, less than 8% of strategic initiatives result in performance improvement. As seasoned authorities in sustainable value creation, we’ve made careers of leading those that are in the 8%. See some examples for yourself.
The answer to, “Can my company scale?” depends on your company’s ability to execute on the answer to three fundamental questions:
To get to the answer we ask prospective clients to engage in a two-day SmartScale℠ lab to explore these dimensions. If at the conclusion of the Lab, participants and ScaleWerks TM facilitators are confident that they have outlined a scalable product or service, the company is invited into the Accelerator portion of the SmartScale℠ TM protocol.
