The Difference between Growth and Scale
![](https://www.happyrichadvisor.com/wp-content/uploads/2019/12/amrPandit-150x150.png)
![](https://www.happyrichadvisor.com/wp-content/uploads/2019/12/amrPandit-150x150.png)
Amar Pandit
A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.
![](https://www.happyrichadvisor.com/wp-content/themes/mfatheme/imgs/calendar-icon.png)
February 5, 2021 | 2 Minute Read
Many people confuse between Growth and Scale. There is a massive difference and understanding this will be critical to some of the decisions that you take.
As you grow, so does your Expense.
On the other hand when you scale your Revenue grows faster than your Expenses. Thus, it is critical to aim for Scale and not just Growth. However, Scale does not mean thousands of team members and creating a very complex structure. Scale can come from simple organizational design (a topic to be covered in the future) with limited high-quality team members. Scale essentially comes from the following levers of our favourite word “Leverage”.
The ancient Greek mathematician Archimedes is known for his explanation of the physics of lever (where the word leverage comes from) – applying a lesser force to produce an outsized change. Archimedes had said “Give me a lever long enough, and a fulcrum strong enough on which to place it, and I will move the world.”
The Levers for building scale are the following:
- Processes/Systems
- Client Experience
- Technology
- Team
- Marketing (Covered in my book “The HappyRich Advisor”)
- Capital
A successful cricket team is not just about the 11 players. There is an entire hidden ecosystem behind these 11 people including coaches, infrastructure, training, mental conditioning coaches and many others. Likewise, a Business that Scales up successfully has the right combination of the above Levers. It is not enough to have technology. The critical part is why this technology and how it impacts all the other levers. The same goes with every other Lever.
The era of revenue compression and increasing costs that we live in today makes Scale a Necessity (and not a choice).
Similar Post
Nano Learning
Pathfinder or Bystander
I had heard (New York University - Stern School of Business) Professor Amy Webb talking about Pathfinder and Bystander companies. Pathfinder companies are those who understand the ....Read More
12 June, 2020 | 1 Minute Read
Nano Learning
When Preparation meets Opportunity
Imagine you are selected in the Indian Cricket Team to play a match against Australia next week. You have got the opportunity of a lifetime to play along with Virat Kohli and Rohit ....Read More
17 July, 2020 | Minute Read
Nano Learning
The Financial Alchemy
I thought of sharing an interesting insight as a continuation of one of my previous posts “Is the Party Over?” Many of you would have seen Shark Tank India. I saw a few episode ....Read More
3 June, 2022 | 2 Minute Read
Nano Learning
Promise and Expectations
As we know, Trust and Truth are the 2 pillars of our industry and profession. All the work we do is based on the foundation of trust and truth. Maintaining a lifetime of trust with ....Read More
18 March, 2022 | 2 Minute Read
Nano Learning
Design and Creativity
I am sharing some powerful quotes on design and creativity in this Nano. As always, reflect on these. “Good design is actually a lot harder to notice than poor design, in part ....Read More
17 December, 2021 | 2 Minute Read
Nano Learning
An Exercise for every Financial Professional
Take a Pen and Pad. I am waiting. Now sit down and write down the following questions. 1. What are the Top 3 reasons you wake up every morning? Yes, you can call this your goals. ....Read More
25 December, 2020 | 2 Minute Read
- 0
- 0
0 Comments