Not all Business Can Scale

I was watching a podcast of a business man who was doing business from the last 20 years. He has a warehouse and he was into supply chain where his business was doing delivering for the big guys. Now as a Salaried person you would have thought that since the online presence has increased the business should have increased.

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But he said that even though the business has increased the competition has increased and thus they have to lower the profit to remain in the business. And because of that the profit has reduced or remain the same. He was telling that he is only earning Rs 75K per month and there is no scope of scaling the business. Even though he tried to do it, the profit will not be that much.

And that's why not all the business can be scaled. And that's OK, even though it can't be scaled it's ok to continue. Problem is that if a person has to dedicate all his time for the business then he cannot scale or he cannot create a new revenue system. And that's why business person should try to get away from the day to day business from its business as early as possible so that he can create a new business if he knows he cannot scale his current business.

If he cannot create scale a business, then it's perfectly fine. He can actually create another business. And that's how he can create more profit. For example, we have a Fancy store nearby and the owner was a hard working guy who was having decent profit. Now once his sons were adult, he has opened a new shop a little far away. Now the profit is doubled of his home. Though he is dedicating full time for his own shop, he opened a new shop and thus the revenue increased. And that's how you can actually scale a business.

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