Enterprise Collaboration and Virtual Teams Report (June 6, 2008)

The key to success for small businesses is scalability, not growth; meaning, a business can increase revenue without overhead or staff. Contrary to popular approach, adding staff and clients will only create bigger problems (or magnify the problems you are already have). Simple idea, right? Makes sense. But how is it done?

As a freelance artist, programmer, carpenter, designer, consultant, or any work-for-hire job, you probably wonder how to do isolated work-for-hire and yet build toward a sustainable future. For example, if you stop work, say to take a vacation, how does the business continue to make money? If it doesn't, read on...

The E-Myth Revisted ("Entrepreneurial-Myth") is a great book for this exact problem...Like many of us who went into business for ourselves, you probably wanted more job freedom, but in a terrible twist of fate, you have in turn become trapped by a business that needs your constant attention. Without you, the business collapses.

How to break the cycle and gain traction?

(First, you have to want free time, but that's another post). Second, focus your business offering on products that are scalable, not your own energy and time. Energy is not scalable, it takes tremendous effort to make any one thing happen. But do it once, build a template, and then let that template do the work. Over time, products will gain momentum without constant energy from you. And you -- lucky you -- will be free to apply your energy elsewhere, say for example, on new scalable products.

So what are scalable products?

To name a few... subscription-based content, photography licensing, ad units on your site, creating your own e-books or e-newsletter. It all takes work, of course, but the root of scalability means you don't have to rebuild products every time from scratch.

Comments

[Matthew Cornell]

Great post, Liza. I esp. liked: "Energy is not scalable, it takes tremendous effort to make any one thing happen."