[{"data":1,"prerenderedAt":3473},["ShallowReactive",2],{"en-blog/growth-vs-scaling":3,"en-global-content":967,"en-article-global-content":2397,"en-blog-article-more-articles-4c34e454-8993-474f-a2d1-5c1f6a260e14":2631,"en-blog-article-more-articles-208733198":3468},{"name":4,"created_at":5,"published_at":6,"updated_at":7,"id":8,"uuid":9,"content":10,"slug":947,"full_slug":956,"sort_by_date":26,"position":957,"tag_list":958,"is_startpage":29,"parent_id":959,"meta_data":26,"group_id":960,"first_published_at":961,"release_id":26,"lang":33,"path":26,"alternates":962,"default_full_slug":956,"translated_slugs":963},"Growth vs scaling: What's the difference and why does it matter?","2022-10-24T15:44:19.591Z","2025-11-03T15:35:24.343Z","2025-11-03T15:35:24.367Z",208733198,"61b12de5-793f-481c-97cb-8538b1c921c2",{"_uid":11,"roles":12,"title":4,"author":43,"topics":81,"content":103,"noIndex":29,"category":918,"language":942,"component":931,"heroMedia":943,"sidebarCta":951,"publishedAt":952,"readingTime":953,"redirectUrl":23,"listingImage":954,"metaDescription":955},"f93ad5c8-9649-4294-b3c5-7f7d0afc66b5",[13],{"name":14,"created_at":15,"published_at":16,"updated_at":17,"id":18,"uuid":19,"content":20,"slug":24,"full_slug":25,"sort_by_date":26,"position":27,"tag_list":28,"is_startpage":29,"parent_id":30,"meta_data":26,"group_id":31,"first_published_at":32,"release_id":26,"lang":33,"path":26,"alternates":34,"default_full_slug":25,"translated_slugs":35,"_stopResolving":42},"FP&A","2024-11-14T16:29:01.734Z","2024-11-22T09:45:20.222Z","2024-11-22T09:45:20.243Z",579108646,"1bff7fbb-a341-4161-bc77-f0cbdd733a66",{"_uid":21,"name":14,"component":22,"hubspotId":23},"fe9819d0-b5da-4a13-9120-3050ce8baea9","tag","","fp-a","blog/role/fp-a",null,-20,[],false,190903385,"7a188f90-0d83-46b6-a283-e458c0b97794","2024-11-14T16:29:36.167Z","default",[],[36,38,40],{"path":25,"name":26,"lang":37,"published":26},"fr",{"path":25,"name":26,"lang":39,"published":26},"de",{"path":25,"name":26,"lang":41,"published":26},"es",true,{"name":44,"created_at":45,"published_at":46,"updated_at":47,"id":48,"uuid":49,"content":50,"slug":69,"full_slug":70,"sort_by_date":26,"position":71,"tag_list":72,"is_startpage":29,"parent_id":73,"meta_data":26,"group_id":74,"first_published_at":75,"release_id":26,"lang":33,"path":26,"alternates":76,"default_full_slug":70,"translated_slugs":77,"_stopResolving":42},"Patrick Whatman","2022-08-16T21:32:07.937Z","2025-06-20T08:02:52.107Z","2025-06-20T08:02:52.122Z",176463342,"defd6ca5-10c7-4170-b8b3-9cbff845ea7c",{"_uid":51,"links":52,"picture":53,"lastName":57,"component":58,"firstName":59,"description":60},"f10c0984-7977-4455-b0e8-e2e6723f7235",[],{"id":54,"alt":23,"name":23,"focus":23,"title":23,"filename":55,"copyright":23,"fieldtype":56,"is_external_url":29},4467235,"https://a.storyblok.com/f/146026/256x256/f69aad01b3/patrick-whatman.png","asset","Whatman","author","Patrick",{"type":61,"content":62},"doc",[63],{"type":64,"content":65},"paragraph",[66],{"text":67,"type":68},"Patrick Whatman is a content marketer and writer. He lives in Paris, loves music, and writes his own brand of cultural criticism for fun. Tweet him @mrwhatman where he mainly talks digital marketing, American sports and New Zealand trivia.","text","patrick-whatman","blog/author/patrick-whatman",0,[],176408854,"f3cc375f-1a91-4728-8bde-a438e19e3012","2022-11-02T15:26:20.589Z",[],[78,79,80],{"path":70,"name":26,"lang":37,"published":26},{"path":70,"name":26,"lang":39,"published":26},{"path":70,"name":26,"lang":41,"published":26},[82],{"name":83,"created_at":84,"published_at":85,"updated_at":86,"id":87,"uuid":88,"content":89,"slug":91,"full_slug":92,"sort_by_date":26,"position":93,"tag_list":94,"is_startpage":29,"parent_id":95,"meta_data":26,"group_id":96,"first_published_at":97,"release_id":26,"lang":33,"path":26,"alternates":98,"default_full_slug":92,"translated_slugs":99,"_stopResolving":42},"Finance strategy","2022-10-19T17:57:50.961Z","2022-11-04T13:36:49.000Z","2022-11-02T15:24:54.174Z",206171406,"4c34e454-8993-474f-a2d1-5c1f6a260e14",{"_uid":90,"name":83,"component":22},"11f616ce-9f54-42bb-967c-fdb960b62cef","finance-strategy","blog/topic/finance-strategy",-100,[],176456153,"5a788f5a-b853-4a56-959b-15a4ea69fd80","2022-11-02T15:24:54.143Z",[],[100,101,102],{"path":92,"name":26,"lang":37,"published":26},{"path":92,"name":26,"lang":39,"published":26},{"path":92,"name":26,"lang":41,"published":26},{"type":61,"content":104},[105,118,129,144,160,166,172,179,200,233,246,252,258,270,281,287,306,312,317,327,339,363,369,388,395,458,463,469,481,509,533,538,552,558,569,582,588,594,599,610,624,629,646,665,670,680,686,716,721,727,733,777,782,788,797,811,825,845,851,857,863,872,878,884,889,900,912],{"type":64,"attrs":106,"content":108},{"textAlign":26,"key":107},"p-0",[109,111,116],{"text":110,"type":68},"In the modern business world, few ideas are more important than growth. Even long-time stock market fixtures like McDonald's and General Motors are judged by their quarterly growth rates. And ",{"text":112,"type":68,"marks":113},"a failure to grow can be catastrophic",[114],{"type":115},"bold",{"text":117,"type":68},".",{"type":64,"attrs":119,"content":121},{"textAlign":26,"key":120},"p-1",[122,124],{"text":123,"type":68},"But for younger companies - and particularly startups - there's an equally strong fixation on ",{"text":125,"type":68,"marks":126},"scale.",[127],{"type":128},"italic",{"type":64,"attrs":130,"content":132},{"textAlign":26,"key":131},"p-2",[133,137,142],{"text":134,"type":68,"marks":135},"How can a business not just grow, but ",[136],{"type":115},{"text":138,"type":68,"marks":139},"grow exponentially",[140,141],{"type":115},{"type":128},{"text":143,"type":68},"?",{"type":64,"attrs":145,"content":147},{"textAlign":26,"key":146},"p-3",[148,150,158],{"text":149,"type":68},"In many cases, this is putting the cart before the horse. Young startups need to build a product, create a strong ",{"text":151,"type":68,"marks":152},"brand identity",[153],{"type":154,"attrs":155},"link",{"href":156,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.crowdspring.com/blog/brand-identity/","url",{"text":159,"type":68},", and establish a market, and then they can think about hypergrowth.",{"type":64,"attrs":161,"content":163},{"textAlign":26,"key":162},"p-4",[164],{"text":165,"type":68},"But we'll talk more about this shortly.",{"type":64,"attrs":167,"content":169},{"textAlign":26,"key":168},"p-5",[170],{"text":171,"type":68},"In this article, we'll explore the differences between growth and scaling. We'll also dive into some key challenges for scaling companies, and what companies need to do to achieve that insane growth.",{"type":173,"attrs":174,"content":176},"heading",{"level":175,"textAlign":26},2,[177],{"text":178,"type":68},"Growth vs scaling up",{"type":64,"attrs":180,"content":182},{"textAlign":26,"key":181},"p-6",[183,185,189,194,198],{"text":184,"type":68},"Let's begin with the most common distinction between these two terms. In general, ",{"text":186,"type":68,"marks":187},"we think of ",[188],{"type":115},{"text":190,"type":68,"marks":191},"growth",[192,193],{"type":115},{"type":128},{"text":195,"type":68,"marks":196}," in linear terms",[197],{"type":115},{"text":199,"type":68},": a company adds new resources (capital, people, or technology), and its revenue increases as a result.",{"type":64,"attrs":201,"content":203},{"textAlign":26,"key":202},"p-7",[204,206,211,215,217,223,225,231],{"text":205,"type":68},"By contrast, ",{"text":207,"type":68,"marks":208},"scaling",[209,210],{"type":115},{"type":128},{"text":212,"type":68,"marks":213}," is when revenue increases without a substantial increase in resources",[214],{"type":115},{"text":216,"type":68},". Processes \"that scale\" are those that can be done en masse without extra effort - if I send an email to 10 people or 1 million, my effort is essentially the same. Which is why ",{"text":218,"type":68,"marks":219},"enterprises use email marketing",[220],{"type":154,"attrs":221},{"href":222,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.emailvendorselection.com/forrester-wave-email-service-providers-2020/",{"text":224,"type":68}," so heavily. It scales so effectively. (Check out these ",{"text":226,"type":68,"marks":227},"SaaS email marketing templates",[228],{"type":154,"attrs":229},{"href":230,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://saasemailtemplates.io/templates/marketing",{"text":232,"type":68}," for examples.)",{"type":64,"attrs":234,"content":236},{"textAlign":26,"key":235},"p-8",[237,239,245],{"text":238,"type":68},"Or for another example - an insurance company that scaled business operations by simply switching to a ",{"text":240,"type":68,"marks":241},"cloud business phone system",[242],{"type":154,"attrs":243},{"href":244,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://justcall.io/blog/cloud-telephony-insurance-utah-case-study.html",{"text":117,"type":68},{"type":64,"attrs":247,"content":249},{"textAlign":26,"key":248},"p-9",[250],{"text":251,"type":68},"But this is just the technical distinction between the two words. Let's look a little closer at what each looks like in practice.",{"type":173,"attrs":253,"content":255},{"level":254,"textAlign":26},3,[256],{"text":257,"type":68},"Growing a business",{"type":64,"attrs":259,"content":261},{"textAlign":26,"key":260},"p-10",[262,264,268],{"text":263,"type":68},"Generally seen as the definition of a successful company, ",{"text":265,"type":68,"marks":266},"growth refers to increasing revenue",[267],{"type":115},{"text":269,"type":68}," as a result of being in business. It can also refer to other aspects of the enterprise that are growing, like its number of employees, the amount of offices and how many clients it serves — these things are almost always linked to growth of revenue.",{"type":64,"attrs":271,"content":273},{"textAlign":26,"key":272},"p-11",[274,276,280],{"text":275,"type":68},"The biggest problem, however, is that ",{"text":277,"type":68,"marks":278},"it takes a lot of resources to sustain constant growth",[279],{"type":115},{"text":117,"type":68},{"type":64,"attrs":282,"content":284},{"textAlign":26,"key":283},"p-12",[285],{"text":286,"type":68},"Take for example an advertising agency that currently has five clients, but which is about to take on five more clients. Increasing the number of companies it sells to will bring in more money, but chances are it won’t be able to get the work done without hiring more people.",{"type":64,"attrs":288,"content":290},{"textAlign":26,"key":289},"p-13",[291,293,300,304],{"text":292,"type":68},"Because of this, ",{"text":294,"type":68,"marks":295},"financial growth",[296,299],{"type":154,"attrs":297},{"href":298,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.cfoconnect.eu/en/resources/meetup-recap/mastering-scale-finance/",{"type":115},{"text":301,"type":68,"marks":302}," can only be achieved while making larger losses",[303],{"type":115},{"text":305,"type":68},", too.",{"type":64,"attrs":307,"content":309},{"textAlign":26,"key":308},"p-14",[310],{"text":311,"type":68},"Companies that offer professional services, like the advertising agency above, will always have to deal with this problem. Taking on more clients leads to hiring more people to support them — while it increases revenue by adding clients, it has to increase costs at the same time.",{"type":173,"attrs":313,"content":314},{"level":254,"textAlign":26},[315],{"text":316,"type":68},"Scaling a business",{"type":64,"attrs":318,"content":320},{"textAlign":26,"key":319},"p-15",[321,323],{"text":322,"type":68},"Because of the costs associated with growth, modern founders have become obsessed with the idea of ",{"text":324,"type":68,"marks":325},"scaling.",[326],{"type":128},{"type":64,"attrs":328,"content":330},{"textAlign":26,"key":329},"p-16",[331,333,337],{"text":332,"type":68},"The key difference with growth is that ",{"text":334,"type":68,"marks":335},"scale is achieved by increasing revenue without incurring significant costs.",[336],{"type":115},{"text":338,"type":68}," While adding customers and revenue exponentially, costs should only increase incrementally, if at all.",{"type":64,"attrs":340,"content":342},{"textAlign":26,"key":341},"p-17",[343,345,349,362],{"text":344,"type":68},"The difference between growth and scaling becomes most clear when a company isn’t a startup anymore, but is not a large corporation yet, either. At this critical stage the business will have to decide between growing at a regular rate or ",{"text":346,"type":68,"marks":347},"switching over to faster ",[348],{"type":115},{"text":350,"type":68,"marks":351},"company scaling",[352,361],{"type":154,"attrs":353},{"href":354,"uuid":355,"anchor":26,"target":26,"linktype":356,"story":357},"company-scale-spend-culture","96359f2d-69c3-4bac-8fe7-89c457886432","story",{"name":358,"id":359,"uuid":355,"slug":354,"url":360,"full_slug":360,"_stopResolving":42},"Company scale: How spend culture changes with company growth",208785657,"blog/company-scale-spend-culture",{"type":115},{"text":117,"type":68},{"type":64,"attrs":364,"content":366},{"textAlign":26,"key":365},"p-18",[367],{"text":368,"type":68},"If it wants a shot at making a lasting impact on the industry and perhaps even society as a whole, it has to be done without accumulating a high amount of overhead.",{"type":64,"attrs":370,"content":372},{"textAlign":26,"key":371},"p-19",[373,375,379,386],{"text":374,"type":68},"Unfortunately ",{"text":376,"type":68,"marks":377},"there’s ",[378],{"type":115},{"text":380,"type":68,"marks":381},"no clear-cut path to successful scaling",[382,385],{"type":154,"attrs":383},{"href":384,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.entrepreneur.com/article/240887",{"type":115},{"text":387,"type":68}," — if there was, it would be much less impressive to build a million-dollar company. There are a couple of things to keep in mind, however.",{"type":173,"attrs":389,"content":390},{"level":254,"textAlign":26},[391],{"text":392,"type":68,"marks":393},"Further reading for startups!",[394],{"type":115},{"type":396,"content":397},"bullet_list",[398,418,430,442],{"type":399,"content":400},"list_item",[401],{"type":64,"attrs":402,"content":404},{"textAlign":26,"key":403},"p-20",[405],{"text":406,"type":68,"marks":407},"Startups: how to manage your SaaS payments easily",[408],{"type":154,"attrs":409},{"href":410,"uuid":411,"anchor":26,"target":412,"linktype":356,"story":413},"/blog/saas-expenses","eeefe75f-2e13-40bb-8a77-e129700b3a31","_self",{"name":414,"id":415,"uuid":411,"slug":416,"url":417,"full_slug":417,"_stopResolving":42},"SaaS expenses: how finance teams manage surprise costs",208803021,"saas-expenses","blog/saas-expenses",{"type":399,"content":419},[420],{"type":64,"attrs":421,"content":423},{"textAlign":26,"key":422},"p-21",[424],{"text":425,"type":68,"marks":426},"A CEO's guide to startup expense management",[427],{"type":154,"attrs":428},{"href":429,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://blog.spendesk.com/en/startup-finances-ceo-expense-management",{"type":399,"content":431},[432],{"type":64,"attrs":433,"content":435},{"textAlign":26,"key":434},"p-22",[436],{"text":437,"type":68,"marks":438},"How to allocate and manage your startup marketing budget",[439],{"type":154,"attrs":440},{"href":441,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://blog.spendesk.com/en/startup-marketing-budget",{"type":399,"content":443},[444,455],{"type":64,"attrs":445,"content":447},{"textAlign":26,"key":446},"p-23",[448],{"text":449,"type":68,"marks":450},"How to raise startup venture capital",[451],{"type":154,"attrs":452},{"href":453,"uuid":26,"anchor":26,"target":454,"linktype":157},"https://www.cfoconnect.eu/en/resources/meetup-recap/venture-capital/","_blank",{"type":64,"attrs":456},{"textAlign":26,"key":457},"p-24",{"type":173,"attrs":459,"content":460},{"level":175,"textAlign":26},[461],{"text":462,"type":68},"Startups vs scaleups",{"type":64,"attrs":464,"content":466},{"textAlign":26,"key":465},"p-25",[467],{"text":468,"type":68},"Here we have two more terms that are often confused. You probably already have a firm grasp on what a startup is, but how does that compare with a scaleup?",{"type":64,"attrs":470,"content":472},{"textAlign":26,"key":471},"p-26",[473,479],{"text":474,"type":68,"marks":475},"According to Scaleup Nation",[476],{"type":154,"attrs":477},{"href":478,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://scaleupnation.com/scale-up/",{"text":480,"type":68},", a scaleup is \"an entrepreneurial venture that has achieved product-market fit and now faces either the 'second valley of death' or exponential growth.\"",{"type":64,"attrs":482,"content":484},{"textAlign":26,"key":483},"p-27",[485,487,491,493,499,501,507],{"text":486,"type":68},"To put that another way, once a startup has proven that it has a product people want, ",{"text":488,"type":68,"marks":489},"it's time to take that product to the masses",[490],{"type":115},{"text":492,"type":68},". This usually requires massive investment in new people, offices in different markets, and lots of advertising in the form of ",{"text":494,"type":68,"marks":495},"hosting educational webinars",[496],{"type":154,"attrs":497},{"href":498,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.onehourprofessor.com/best-webinar-software-platforms/",{"text":500,"type":68},", attending trade shows, ",{"text":502,"type":68,"marks":503},"prospecting leads",[504],{"type":154,"attrs":505},{"href":506,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.instantcheckmate.com/people/",{"text":508,"type":68},", and other tactics.",{"type":64,"attrs":510,"content":512},{"textAlign":26,"key":511},"p-28",[513,515,519,521,525,527,531],{"text":514,"type":68},"Which actually sounds sort of counter to our earlier definition of \"scaling\" - increasing revenue without increasing investment. But if successful, a scaleup will add ",{"text":516,"type":68,"marks":517},"exponential",[518],{"type":128},{"text":520,"type":68}," growth with only ",{"text":522,"type":68,"marks":523},"linear",[524],{"type":128},{"text":526,"type":68}," or ",{"text":528,"type":68,"marks":529},"marginal",[530],{"type":128},{"text":532,"type":68}," investment. Essentially, if they can unlock new markets and reach new audiences, a scaleup will grow faster than previously possible.",{"type":173,"attrs":534,"content":535},{"level":175,"textAlign":26},[536],{"text":537,"type":68},"Key challenges for scaleups",{"type":64,"attrs":539,"content":541},{"textAlign":26,"key":540},"p-29",[542,544,550],{"text":543,"type":68},"Recent studies have shown a few trends that should perhaps worry CEOs. First, ",{"text":545,"type":68,"marks":546},"two-thirds of the fastest-growing companies fail",[547],{"type":154,"attrs":548},{"href":549,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.entrepreneur.com/article/310166",{"text":551,"type":68},". You might think that reaching hypergrowth status puts you on the inevitable path to success. It appears not.",{"type":64,"attrs":553,"content":555},{"textAlign":26,"key":554},"p-30",[556],{"text":557,"type":68},"Other macro studies have shown that slow-growing companies tend to do better in the long run than their fast-growing counterparts.",{"type":64,"attrs":559,"content":561},{"textAlign":26,"key":560},"p-31",[562,564,568],{"text":563,"type":68},"This is not to suggest that you shouldn't want to grow quickly. But you need to do it smartly. You need to be one of ",{"text":565,"type":68,"marks":566},"the good ones",[567],{"type":128},{"text":117,"type":68},{"type":64,"attrs":570,"content":572},{"textAlign":26,"key":571},"p-32",[573,575,581],{"text":574,"type":68},"Let's imagine a business moving from startup to scaleup overnight. What was previously a local company with around 50 people in one cozy office is now a ",{"text":576,"type":68,"marks":577},"business expanding internationally",[578],{"type":154,"attrs":579},{"href":580,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://www.globalcallforwarding.com/learn/top-countries-for-global-expansion/",{"text":117,"type":68},{"type":64,"attrs":583,"content":585},{"textAlign":26,"key":584},"p-33",[586],{"text":587,"type":68},"The plan is to double in size every twelve months. So in three years, you're going from 50 to 400 full time employees. And some grow a lot faster than that.",{"type":64,"attrs":589,"content":591},{"textAlign":26,"key":590},"p-34",[592],{"text":593,"type":68},"So what are the key difficulties that come from this kind of scale up?",{"type":173,"attrs":595,"content":596},{"level":254,"textAlign":26},[597],{"text":598,"type":68},"You need investment",{"type":64,"attrs":600,"content":602},{"textAlign":26,"key":601},"p-35",[603,605,609],{"text":604,"type":68},"This is the most obvious prerequisite: today, most young companies need significant investment (usually from venture capitalists) to scale up. ",{"text":606,"type":68,"marks":607},"This often comes in the form of series B or C funding",[608],{"type":115},{"text":117,"type":68},{"type":64,"attrs":611,"content":613},{"textAlign":26,"key":612},"p-36",[614,616,622],{"text":615,"type":68},"Earlier funding rounds are used for ",{"text":617,"type":68,"marks":618},"MVP development",[619],{"type":154,"attrs":620},{"href":621,"uuid":26,"anchor":26,"target":26,"linktype":157},"https://rebeldot.com/mvp-development-companies/",{"text":623,"type":68}," and to establish market fit, and if they're able to secure further funding, it's to expand quickly.",{"type":173,"attrs":625,"content":626},{"level":254,"textAlign":26},[627],{"text":628,"type":68},"You need scalable processes",{"type":64,"attrs":630,"content":632},{"textAlign":26,"key":631},"p-37",[633,635,639,641,645],{"text":634,"type":68},"Typical scaleups have a ",{"text":636,"type":68,"marks":637},"product",[638],{"type":128},{"text":640,"type":68}," that scales well - it appeals to buyers far greater than the current market served. 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But once you have multiple offices and handfuls of people traveling at once, this is simply no longer an option.",{"type":173,"attrs":666,"content":667},{"level":254,"textAlign":26},[668],{"text":669,"type":68},"You have to embed a company culture",{"type":64,"attrs":671,"content":673},{"textAlign":26,"key":672},"p-39",[674,678],{"text":675,"type":68,"marks":676},"Startup company culture tends to come naturally",[677],{"type":115},{"text":679,"type":68},". Again, everyone sits in the same room, you hire carefully, and most of your team has the same goals and passions.",{"type":64,"attrs":681,"content":683},{"textAlign":26,"key":682},"p-40",[684],{"text":685,"type":68},"But once you move international, this is much harder to control. 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