When it comes to the growth versus scalability of a business, is there a difference? While these two terms are often used interchangeably, there are some key differences between the two that every business should be aware of. Here, we explore the difference and why it matters, and delve into the value that automation solutions such as Xtracta’s data extraction API and data capture software bring to the table when talking about growing vs scaling.
Business Growth vs. Scalability: The Basics
First, let’s start by defining the most common distinction between these two terms. Growth is a concept that is often thought of in linear terms. For example, when an enterprise increases its revenue, its resources typically also increases — bringing in new technology, capital, or people.
Scaling a business in contrast, enables a company to increase its revenue without needing to invest in a significant increase in resources at the same time. For example, email marketing and email automation are scalable processes that businesses commonly invest in. This is because sending an email to one recipient versus sending the same email to 3000 recipients takes essentially the same amount of effort and time. Sending an automated email that is triggered by viewer actions takes even less effort. No large investment in additional resources is required, even though the value you get increases.
Growing a Business
Let’s explore a more thorough breakdown of what growing a business entails. In general, business growth refers to the increased revenue a company receives from its success, but it can also be used to describe other aspects of the company that are growing. For example, it can refer to everything from the number of offices a company has, to the number of people it employs or clients it serves.
While business growth is often used with a positive connotation, denoting success, the biggest problem with constant growth is that it takes a lot of resources to sustain. A warehouse that is growing to cater to a higher demand of customer orders can only handle and distribute so many orders before they must bring in more staff and resources to accommodate. In this instance, while financial growth is achieved, the company also has larger costs, which can reduce increased profitability higher revenues would otherwise bring. This is where a scalable business strategy can be of use.
Scaling a Business
One of the biggest reasons scalable solutions have become so important for businesses today is because of the costs associated with growth. As mentioned above, the primary difference between growing a business and scaling a business is that scaling focuses on increasing revenue without also experiencing significant resource cost increases.
When searching for a scalable business solution, the overall revenue benefits should greatly outweigh any associated costs. For companies looking for scalable solutions for their business, there is a wide range of options to consider. For example, automation can help you manage your business with greater efficiency and at a lower cost by minimising manual work, and systems integration is also a key area for improvement within most businesses. Enterprises don’t run off a single system, in fact, they often have a dozen or more systems, but if those systems don’t work well together this can result management and communication issues as your company develops.
For example, Xtracta’s data extraction API is easy-to-use and simple for software companies to integrate into their business applications. Through Xtracta’s AI OCR technology, the data capture API doesn’t need specialist engineering to set up ‘rules’ or ‘templates’ either, the engine can automatically pull the information required for maximum efficiency. Any mistakes or missing data can easily be corrected during the normal processing of a document with this automatically teaching the system. This capability allows companies to scale – as they get bigger, they don’t need to add additional head count and costs for processing documents. Low cost, high reward.
Additionally, companies can increase visibility and control of processes such as Accounts Payable, through using extracted data to assist with fraud detection, meeting payment deadlines, managing exceptions in real-time and making quicker decisions with real-time reporting and tracking. All of which also contribute to the scalability and long-term resilience of an organisation.
Where Xtracta’s API and data capture software fits in
While there is no clear-cut path to successful scaling, process automation solutions such as Xtracta’s API enable companies to increase scalability through fast and accurate data processing. If you’re looking for scalable business solutions to maximise business growth and minimise costs, get in touch with the specialists at Xtracta today to learn more.
