Scaling simply refers to increasing or decreasing something.
In business, it usually refers to increasing volume in order to increase revenue. This single concept makes a large percentage of the difference between middle class workers and millionaires.
Millionaires know how to scale great ideas, and they know when to give up and move on to some other, more lucrative, platform altogether. How is that?
Give Me Fuel, Give Me Fire…
I love camping, and that usually includes a bit of fire-tending. The key when starting a campfire is to start small. Once the flame is well established, then you can add slightly larger bits of wood (kindling), until the large fuel logs catch.
This is exactly how you need to be building your business.
Think about it. If a business doesn’t work on a small scale, why would it work on a large scale?
If your business model can’t turn 20 hours of effort and $5 into $10, why would you anticipate that it could turn 20,000 hours of effort and $5,000 into $10,000?
Smart entrepreneurs know when to give up, and it isn’t just dumb luck or a “gut feeling.” Successful entrepreneurs start small and see what happens. If they experience initial success, they keep building. When things stop growing, they also stop and ask themselves, “What’s going on here?”
After making adjustments, the business will either start to grow again, or the entrepreneur will leave it alone. This doesn’t always mean walking away from the business completely. It just means no more (or extremely limited) active investment in the dead-end project.
So, find a business that enables you to turn a profit through a reasonable amount of effort. Then, scale it. If 6 weeks of effort and $100 has earned you $227, then you’ve found a worthwhile platform. Now, you just need to test whether or not it can be successfully scaled.
For example, would 12 weeks more effort generate $454? That’s not a bad chunk of change, especially if it is residual.
In my next article, I’d like to continue this proverb by sharing with you the power of patience, so stay plugged in by signing up for my email list below.
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