Many people confuse and use the terms growth and scalability interchangably. Growing your business means increasing your revenue. Which increases your costs and resources directly in proportion to that growth. Scaling your business increases revenue without necessairly increasing the associated costs. When it does increase the cost, it does so at a substantially lower/slower rate than the growth occurs. This my friends is smart business.
For example:
Drunk Squirrels could not meet its goals if they only offered individual coaching. With 24 hours in a day, there is a limit on how many clients can receive service. In addition there is a maximum on the amount people are willing to pay for each product and service.
Using traditional growth strategies, the only way to grow is hiring a team. By increasing coaches, we increase clients served which achieves growth. With this approach the operating costs rise at close to the same rate as growth.
How can you increase your business’s revenue without increasing costs? The answer is simple … Scalability.
Increasing revenue by offering additional complimentary products and services. The products and service we chose are scalable. An example is our launching of Squirrel Nation April 1st, 2018. This is a group coaching and education program. The program uses a subscription based pricing strategy.
Coaching is a 1 : 1 exchange of a set block of time for money (even if you use value based pricing). A group program can see ratios of 1 : 400+ and still maintain their success, effectiveness, integrity, and value.
A group program allows us to help more individuals. We can do this without an increase in time spent providing support and training. Rhonda will spend 12-15 hours per month providing training videos, and doing Q& A Sessions. This happens regardless of how many individuals are enrolled in the program. The training time is the same if one person is enrolled or 400 people are enrolled. For every 100 women who enroll, Rhonda’s time investment increases by up to 10 hours/month. As you can see The costs rise at a much lower and slower rate than growth occurs.