"Scaling up. Complex? How about scaling up with profitability? Ten times more complex.” - Avinash Bhandari
Achieving sales growth by itself is difficult for most businesses in this hyper competitive world. This, in spite of our growing economy and per capita consumption of almost everything rising. Add to this the element of profitability. Most businesses start to struggle when they attempt achieving sales growth while even keeping their profitability intact. Forget improving profitability. Also, gains in market share for businesses are often accompanied by reduction in price realizations of their products.
So how can business leaders, specially owning and managing small and midsized companies, scale up substantially while simultaneously improving profitability of their businesses? I believe that Opportunity sizing, Customer selection, Strategy development, Profit models, Strategy execution and Operations effectiveness are all equally critical to the process of “scaling up profitably”. Business leaders need to be focus on all these critical components, equally.
Scaling up substantially with profitability. Doable ? For sure.