Economies of scale, margins, and densities. Oh my! Lots of questions floating around lately about scaling a business and I wanted to touch a bit on my thought processes on macro vs. micro business models. I’ve always been a fan of the phrase “don’t let a dime get in the way of a dollar” and you’ll hear that logic in today’s video.
There are millions of ideas out there for great businesses, and a hundred million terrible ideas that look great. Weighing margins vs. customer access is the key math I look at when evaluating a business, either as an investor or as a consultant. Deeper analysis comes later of course, I’m a huge fan of SWOT analysis and the lean canvas, but only after an idea passes the initial benchmark: can it scale?