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 of time and there is no way you can increase that, as time is a finite element. Let's take a doctor for example. If said doctor is paid for his skill in doing surgery, there's only a finite amount of surgery he can perform, no matter how hard he works. 

That's why I like investing as a path in pursuing financial freedom. If I continue to look for a job that requires me to sell my time, it is a non scalable solution. In investing, it leans towards capital dependence rather than time dependence. What do I mean by that? Say you managed to form a strategy that earns 10% ROI per annum. Your return on 1000$ is 100$, whilst your return on 1,000,000$ is 100,000$. Your upside is only limited by your capital. 

If you want a quicker way to financial independence, all things being equal, seek a solution that scales. For me, investing is something that is scalable and remains a good option.