Before scaling your business, it's important to ask yourself these two questions to ensure that your business is scale-ready and scale-worthy:
- Have I identified a problem worth solving?
- Is there demand for a solution to this problem?
If the answer is yes to both, then you need to ask how you can grow your company quickly and profitably. Scaling your business –which means increasing the level of revenues, expenses and profits by orders of magnitude—is a means toward growing profitably. Since capital is likely the main constraint on your growth, scaling successfully means you have to produce returns on your fixed capital in the shortest amount of time possible. The faster you can "earn back" or pay back the capital you invest, the faster you can redeploy it for more growth. Focus on the opportunities that give your business the shortest "payback" periods while your business is small and growing.
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