MBACC4
VALUE DELIVERY
Every successful business actually delivers
what it promises to its customers.
There’s a term for a person who takes other
people’s money without delivering equivalent value:
"scam artist."
Scale
“Ut sementem feceris, ita metes.” (You reap what you sow.) — Marcus Tullius Cicero, ancient Roman statesman and orator
Key Ideas:
- Scale is the ability to reliably duplicate or multiply a process as volume increases.
- Scalability is limited by the amount of human involvement required in the process. The smaller the level of required human attention in the process, the more the business can produce.
- Products are easier to Duplicate, while Shared Resources are easier to Multiply.
- People don’t scale. On the contrary, the bigger the demand on them, the lower the effectiveness.
- The smaller the level of human involvement, the more scalable the business.
Questions for Consideration:
- Is your business system scalable?
- What is the maximum volume your business system could currently deliver?
- How would you go about expanding the business as volume increases?