Adam Sand explains that scaling isn't just hiring more people or growing bigger. Real scaling means revenue grows faster than expenses do. Most companies let costs outpace income instead.
A lot of times when I hear people talk about scale, they're just meaning they want to scale. Like, they just want to get twice as many employees. And that's not the true definition of scale. So when they get here, what happens is they say, you know what, I talked to somebody, a coach, a consultant, you know, guru, and they say, I want my business to do this. I want to double my rate of growth. The thing that happens is this, where all of a sudden expenses are growing at a rate faster than income. That is when business gets scary and have to prevent that. Now what we're going to talk about is what scaling actually means. So you're growing like this, and your expenses are growing like this, but we find a way to create this. And so the gap from here to here is much different than the gap here to here. What this is is the expenses grow at the same rate, but the growth of the business grows at an increasing rate. How do we do that? That is literally the million dollar question.
