Why scaling is hard
How to scale training business effectively
There are countless “scale gurus” roaming the internet.
Most of them have never scaled, so implement their opinions at your own risk. About a year ago, I started a new brand. We put the infrastructure together, took the first batch of clients, and started building the runways.
Every business has two types of income:
Your current income is exactly what it sounds: sales taking place right now. Future income is more important, because it turns into a moat of sorts. Future income is generated by goodwill, content, partnerships, latent revenue that has yet to be converted.
Your future income is your “runway.”
A good heuristic is this: the slower you build it, the longer it will last — this is due to your runway. Speed isn’t bad, that’s not what we’re talking about. Speed is just a thing — what’s bad is harvesting 100% of available opportunity at all times.
This eats at your “runway.”
Here’s a detailed explanation:
One of my favorite authors, Morgan Housel, says the fastest way to get rich is getting rich slowly. Likewise, the fastest way to build a build it slow enough to create runway.
The reason scaling can be so hard, is you have to strike the balance between taking market share now, versus preserving it (without losing it) for tomorrow.
The video goes into further detail.
Hope you enjoy,