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Scale down, not up. Profitability first.

For a short moment, ask yourself and deeply consider these 3 questions:


Whether growth is truly beneficial to your business?


How can you grow without adding "more"?


Whether you really need venture capital funding of your venture or are you simply thinking too big too fast?


Asking yourself a few reverse-psychology questions about the growth and scalability of your venture or existing business will not only put your vision in question but also gives you the 360 perspectives of the consequences of scaling. "Growth", "scaling" and "more" is always synonymous with business success. In our opinion, its such a traditional-legacy based concept that consistently gets the front seat in the golden circle of business agenda items.


Its pointless, counter-productive and even detrimental to any business strategy that seeks to scale without the adequate preparation in sustaining the planned scalability. For every venture opportunity or existing businesses that have been radically impacted by global events of the past 3- 5 years, your absolute mission-critical objective is to get back to profitability first; even if it means scaling back! Yes, that's correct - Scale Back! This might mean serious streamlining of your business model, processes, people, the production of the value to your customers and perhaps even letting go of a few unprofitable customers. The equation of profitability is simple as maximizing and optimizing the customer's output value while reducing input without compromising on quality. We know, that's a hard one to juggle. Your next challenge is ensuring that profitability is sustainable. For you to somewhat determine the sustainability of your profitability, you should breakdown your profitability into a value chain. To resolve this, ask yourself; what factors directly impact your business model; such as, but not limited to: your supply, your target market and your resources, tools & applications to produce an output. Once you have identified those factors, determine the sustainability of those as separate organic entities and then further understand its trends and influential factors that will make it no longer sustainable. You see, what we don't realize is that our business is only as sustainable as what it is dependent on to produce its value. The moment we aware of those critical sustainable dependent links, we can prepare and provide antitodes to the risks associated with scaling a business. Then only we genuinely begin to build a sustainable business for the future.

 
 
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