Life of a Business Owner

What does it mean to scale?

When Business Owners talk to me about scaling, often they think about the product itself. In reality, we should think about sales channels.

It’s relatively easy to attract the first customers. But at the time you reach certain level, you will find that the acquisition cost will begin to grow exponentially. This because large competitors already occupy all the mass channels. At some point, these rising costs will make further growth unprofitable.

The scalability of your product is not about the scalability of the idea, but the scalability of the sales channels. So our task as Business Owners is to find such marketing channels that will scale to required volumes without the cost of attracting new customers growing even faster.

Do not forget that the channels in which your competitors are powerfully present are hardly scalable.

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