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Showing posts from June, 2021

On... Scaling Matters

Scaling solutions always beat non scaling solutions and that's what we should pursue in my opinion. In my opinion, fast food chains like McDonald's  Kentucky Fried Chicken, etc... Are better business models compared to boutique restaurants or niche cafes, because fast food chains have the ability to scale easily. If you run a boutique restaurant, your ability to expand the business is dependent on your chef/cook. Assuming your menu has been a hit and your customers are increasing, you won't be able to easily set up a new restaurant as you need the chef to pass on his skill to another person. Compare that to a fast food chain where the recipe can be easily replicated and you can set up new stores easily as long as you continue to be profitable.  Another example of scalability is whether your endeavor is capital dependent or time dependent. If you're selling your time, I.e. being paid as an employee in a company, your upside is limited. You can only work a certain amount ...