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    Scale up your mindset to scale up your company


    When the company is actively involved, it is important to take action at the right time, and to know whether it ready for growth.

    ET Online
    It is worth trying to understand the best practices when it comes to scaling up.
    By Vikram Bhatt

    Stagnation is monotonous. Growth is one of the primary parameters any company is judged by. After all, why would a business want to continue at the same level for any extended period of time? It might indicate a lack of ambition, good judgement, capability or potential to others – indeed something any founder or CEO would want to avoid. At the same time, care must be taken to avoid aimless growth. The right way to scale up is to make it sustainable, planned, inclusive, and measured. It is worth trying to understand the best practices when it comes to scaling up.

    Focus on active growth strategies:
    Growth can be passive or active. The number of customers for a particular product or service increasing over time, after introducing it in the market, happens organically, with limited intervention from the company. Active growth is where the company itself takes steps to induce growth, such as introducing new products or services, new variants, entering new markets, among others. When the company is actively involved, it is important to take action at the right time, and to know whether it ready for growth. Here are some points you can think on to take a decision:

    • Do you have space/supply constraints? – If there are customers who you have to turn away due to lack of bandwidth, it’s time to add to your capacity.
    • Are your customers coming in numbers too high to handle? – If your cup runneth over, get a bigger cup.
    • Are there external factors that you see adding to your bottom line? – Socio-economic trends, government policies, fashion trends, all influence consumer behavior. Stay on top of the latest to know when to make it work to your advantage.
    • Is there a chance to get your industry to grow? – Getting an industry organized, getting it recognition, creating standards, etc. are some ways to induce growth in the entire ecosystem.

    For this to happen, it is important that the people at the top have the right mindset. Starting at the top, the credos of exploring and being constantly alert to growth opportunities must percolate down to every level. This is because what got the business to a particular level, might not be sufficient enough to take it beyond that. Fresh ideas and energy on the other hand can provide an effective impetus to grow. A collective effort will increase the chances of success. This effort also needs to be supported by robust systems and processes to remove inefficiencies in scaling up. After all, the elephant has to be nimble and responsive!

    Not that there are no pitfalls to consider. Often times, companies are taken away by the ideas of grandeur and dominance. An interesting fact is that of the Fortune 500 companies in 1955, only 12% remain alive in 2016, thanks to the dynamic and innovative nature of the consumer economy. Of course, this is a very large time period, but it’s something to ponder over.

    How can your ensure effective growth and scaling up?
    As mentioned before, growth has to be sustainable, planned, inclusive, and measured. How can one ensure that?

    Sustainable: Companies must not be too fast in taking an opportunity. They must balance the short term gain against the long term via due diligence. Mere availability of capital is not reason enough for illogical initiatives.

    Planned: Systems and processes must be in place to avoid stretching resources beyond control.

    Inclusive: All stakeholders must participate in growth initiatives. Top management, investors and employees must all get involved in the effort, and receive gains in the process. Delegation becomes key, since it fosters a sense of responsibility and contribution to the company’s success.

    Measured: This will help in setting a standard, and understanding what works and what doesn’t.

    Why are peer-to-peer platforms crucial for entrepreneurs who are growth ready?
    While on the journey of scaling-up, being active on peer-to-peer networking platforms may prove beneficial – especially for entrepreneurs who are ready to jump on the growth train! Entrepreneurs can interact with many like-minded individuals who have similar experiences, thoughts and ambitions, which proves to be a great bouncing board. We as entrepreneurs have several blind spots that get triggered only when interacted with like-minded entrepreneurs who are too struggling with the challenges of scaling up. Sure, at a closer look, the nature of their challenges may vary but when peers comes together in a trusted environment, they form as a sounding board that can help entrepreneurs finds their answers to their scaling up challenges.

    These are entrepreneurs who have been there and done that, as against armchair gurus. People who can offer an unbiased and neutral point of view to your endeavors. People who can suggest best practices from their industries, which may prove to be a differentiator in yours. Platforms such as ASCENT Foundation and many more become a safe haven for entrepreneurs who are looking an experiential learning both good and bad, so that others may learn from what you have done.

    Vikram Bhatt is a member of ASCENT Foundation and Founder & Director - Enrich Salons and Academy – Growth and Strategy at Enrich Salons and Academy.

    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of

    1 Comment on this Story

    Rajesh Pokharkar655 days ago
    Hi Myself Rajesh Pokharkar, Broad outlook and optimistic mindset is essential to grow any business.
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