Connecting businesses, people, and technology is not a job; it's the heartbeat of my professional journey. As a connector and activator with a curious mindset, I find immense joy in bringing together talented individuals from various professional backgrounds to create synergies that elevate business value.
Recently, I engaged in a conversation about the manufacturing industry in New Zealand, diving into the intricacies that define success in this dynamic sector with Xen from Softlabs and Sri and Fay from DRAS Global. What have we discussed? Scaling a business
Scale vs. Growth
In our discussion, Sri and Fay enlightened me about the often misunderstood concepts of scale and growth. Understanding the nuances between the two is crucial. While growth focuses on revenue increase, scaling is about growing more efficiently, ensuring gains lead to increased profitability.
An illustrative example:
Let's break it down with a straightforward example. Scaling means growing intelligently. Winning a $100,000 contract represents growth. However, investing $5,000 in an efficient software solution to save $45,000 in labour costs exemplifies scaling - a concept often overlooked in the business world.
Metrics of Business Scaling
Scaling is quantifiable. Consider key metrics such as improving profit margins, retaining existing customers while acquiring new ones, enhancing operational efficiency, and exploring new markets.
Scaling involves financial, material and personal challenges. It is essential to critically analyze by relying on valuable data to determine the risk level and adapt our scaling strategy accordingly. The process of developing your scaling strategy typically takes about six months. Hence, it is vital to have the strategy as a live process dynamically changing according to the target market's needs and preferences.
The Importance of Teamwork in Scaling
In our discussions, it became evident that scaling isn't merely about growth—it's akin to orchestrating a symphony where each element contributes to profitable expansion. I consulted Xen to understand the role of processes and Softlabs's significance in this partnership.
The Role of Software in Efficient Scaling
Xen highlighted the importance of software like Epicor Kinetic ERP from SoftLabs. Technology investment can reduce the need for additional hires, cut costs, and scale business operations efficiently. The core of this technological arsenal is Enterprise Resource Planning (ERP) software, enabling synergy and informed decision-making for improved efficiency and profitability.
Key Benefits of ERP Systems
The Power of Diverse Perspective
Our discussions, enriched by diverse perspectives from Singapore, Abu Dhabi, Greece, and the Czech Republic, highlight the power of diversity as New Zealand's gold. Together, we are committed to empowering NZ businesses to thrive and seize opportunities for expansive thinking.
Looking to scale your business? The key is to take massive action now! Embrace the lessons of growth and scaling to increase sales, improve profit margins, and pave the way for long-term success.
Let’s get in touch:
Xen Zambas SoftLabs/INETORA xenz@inetora.com
DRAS Global team: contact@drasglobal.com
