Comment from the navigator of the business agency kuko

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As always, Mike Mikalowicz's articles make us think!

On the one hand, this approach makes you really think about the best direction to develop your business. It motivates you to look at the project with different eyes and find resources in it to increase profits.

On the other hand, this contradicts the established understanding of the process of scaling companies. Even those publications that describe scaling as expansion without growth in operating costs immediately talk about opening new stores and warehouses. Perhaps such a contradiction arises because what is meant is the ratio of profit to costs? Mike Michalowicz also writes not about the absence of cost growth, but about the absence of "large additional costs."

How to organize this in your head (to use as a tool)? We suggest the following.

In general, materials on scaling point to the ability to job seekers number user data grow "without hindrance" and the need for a company to have the resources to do so. At the same time, when talking about startups, scaling is usually understood as expanding a business model and approach that have yielded results or may yield results in the future.

Therefore, it seems to us that scaling is the expansion of the application of successful business practices. You do something well, you spread this practice to a new territory or new audiences, assuming that it will turn out just as well there. Expenses will still grow, and the current business must ensure scaling, otherwise we can say that the model or approach to business is not yet ready for this. We will point out here that growth, development, expansion - these terms do not necessarily imply the replication of exactly "successful business practices". A similar approach can also be applied to advertising.

As for Mike Mikalowitz's article itself, we suggest separating the concepts of business scaling and profit scaling. If there is a direction that brings good profit, then you can look for an opportunity to earn even more on it either without significant additional costs or while maintaining the existing percentage of profit to revenue.