Scale. The only battleground you should be willing to perish on.
If you’ve happened to attend or be part of something related to entrepreneurship then you’ve probably ran into the topic of growth and scaling in business. A lot of people use these words interchangeably like they mean the same thing - growth; however, this isn’t accurate as there is a crucial different between growth and scaling when it comes to business.
So, what is the difference anyway? Because we’re essentialists here, I’m just going to put it as bluntly and as straightforward as is possible. Company growth is when the income of that company grows as well as the expenses. The company makes more money but spends as much money to make the same amount of money. On the other hand, scale in a company means that the company’s income grows faster than the company’s expenses. That is, the company makes more sales but the amount of money spent of making those sales is much lower than the money generated by the sales.
Wait, is this possible, you may be asking. Doesn’t the cost of making a product versus selling it stay the same whether you sell 50 or 50 000 of them? Well, yes and no. Selling a product has its own costs and if you can take those out of the equation, then - you can make much more money on a single single than you would if the costs stayed the same. Also, by adding further value to your products by means of digital resources such as information in the form of content, then you can bump up the price of your product/service without having spent too much on ‘acquiring’ that added value; content value can be multiplied and reapplied without added cost. But, the ultimate decider is the use of marketing automation tools to allow efficient marketing to wider audiences - this is where the heart of scaling is. Once you have added extra value to your physical products by adding digital products in the mix and raising the price a bit, and then for the grand move; advertising to a wide audience - then your beauty product company has the chance to have its income radically outpace its expenses and not only grow, but scale as well.
