What is the Difference Between Growth and Scale?
- Growth vs. Scale: Growth increases revenues but also costs, while scaling increases revenues with minimal cost increases, improving profit margins.
- Economies of Scale: Achieving scale involves reducing costs, such as through volume discounts, to increase profitability.
- Sustainability: Scaling is more sustainable than growth alone, allowing businesses to handle market changes and continue providing value.
- Long-term Goals: Entrepreneurs aiming for long-term success and value creation should focus on scaling rather than just growth.