Nail It, Then Scale It

Nail It, Then Scale It - Austin Linen Service

The components of a business model involve these three essential ingredients:

1. Service (i.e., linen service) or product
2. Acquire a customer
3. Generate revenue from that customer

You have a successful and profitable business model when revenue (#3) is greater than the cost of the service (#1) + sales and marketing (#2).

At its core, it really is that simple.

When you have found the right service and market, now you may want to monetize your service most effectively and begin to scale it.

Howard Love, author of The Start-Up J Curve, says as you scale your business you should pay attention to these 5 issues:

  • Business Model

    Have you figured out your business model; are you making sure you nail the model before you start to scale; does this model provide you with a way to generate significant revenue from the business.

  • Scaling

    Are you scaling at the right time; are you making sure you're not moving too early or too late?

  • Skills

    Are you willing to bring in new people with the specialized skills necessary to help the company succeed in its growing form? Are you also willing to make the right decisions about your current people (including yourself), insisting that they go from generalist to specialist and letting them go if they can't make the transition?

  • Revenue

    Have you raised the necessary revenue to scale, either from increased revenues or from venture capital?

  • Pitfalls

    Are you resisting lowball offers? Do you understand the pitfalls of entertaining or accepting such offers?

As the owner and CEO of Austin Linen Service, I am always focused on our business model and looking for predictable patterns of success that help me anticipate the challenges, overcome the obstacles of a growing company, and ride the curve to the top.