Every entrepreneur has the dream of building the small business they started in their garage into a multi-million dollar company. In order to make the dream a reality, an entrepreneur must overcome many obstacles and master several vital skills. One of these is the ability to scale your business. Scaling a business involves reliably duplicating or multiplying processes as volume increases. According to Kaufman, “the easier it is to duplicate or multiply the value provided the more scalable the business.” Human involvement is the primary limiting factor for scalability. Humans don’t scale. They have a finite amount of time and energy each day. As a result, service-based businesses are typically much harder to scale as the quality of the value provided depends heavily on the skill and demeanor of each service provider. Product based companies are easier to scale. Value streams can be optimized, and as technology advances, productivity increases help to reduce the human factor. Kaufman ends this section with, “As a general rule, the less human involvement required to create and deliver value, the more scalable the business.
President Trump announced yesterday that John “Bomb them all to Hell” Bolton would replace General H.R. McMaster as National Security Advisor. Mr. Bolton is most known for being a primary supporter of the Iraq war in 2003. He had an active role in making the case that Saddam Hussein possessed weapons of mass destruction,
People like to feel in control. It makes it easier to make decisions when you are confident of the outcome. People hesitate and deliberate more when the outcomes aren’t so reliable. This fact makes predictability extremely important for the entrepreneur. In this section, Kaufman opens up by telling a story of a painting business started by one of his childhood friends in Columbus, OH.
Everybody loves surprises. If I ordered a box of cigars from a company and received them within the standard five to six business days, I would be satisfied with my purchase. If I received them within two business days and the package included a 50% off coupon for my next order, I’d be ecstatic. My perception of the quality of this business would instantly go up.
Parenting is hard. It’s so hard that often you find yourself wanting to scream and pull what little hair you have left. It’s even harder to find resources to aid you in your quest to be a good parent. There are thousands of parenting books, blogs, magazines, courses, and videos. My brain hurts just thinking about all of the research that I’ve done to find good parenting resources
Walter Block is the most prolific libertarian and economic scholar alive today. He’s now published over 500 scholarly articles in peer-reviewed, refereed journals covering a vast array of topics in the areas of libertarian political philosophy and Austrian economics. He’s written over a dozen different books, his most famous being Defending the Undefendable.
How you choose to get your product or service into the hands of your customers is an important decision, and affects multiple aspects of your business. According to Kaufman, your distribution channel “describes how your form of value is actually delivered to the end user.”
Kaufman describes in this section the concept of a value stream. He defines it as, “the set of all steps and all processes from the start of your Value Creation process all the way through the delivery of the end result to your customer.”
The make or break point for any business, or any employee for that matter, is whether or not they can deliver value. Can you provide value to your customers or your boss? In the context of business, Kaufman describes this process as, “everything necessary to ensure that every paying customer is a happy customer: order processing, inventory management, delivery/fulfillment, troubleshooting, customer support, etc.”