RHDR Group Information

StartUp Accelerator & VC Coordinator IS YOUR BUSINESS IDEA SCALABLE? Scalability refers to your ability to increase revenues while your marginal costs decrease with each unit sale and is an attractive feature for many business and business owners because of the profit potentials that scalable businesses offers. Software firms, such as Microsoft are excellent examples of scalable firms that benefit from low marginal costs of swelling additional units. CONSULTANTS, DOCTORS, LAWYERS, and other PROFESSIONALS… that often work on an hourly or pay per fee basis represent businesses that are not scalable. A professional is paid only for each unit of work that they produce which is directly tied to their personal time. A doctor does not get paid unless he spends time with a patient, lawyers cannot get paid unless they are spending billable hours on client works. There is no direct way for a professional to increase their profits without increasing their marginal cost ("aka" their time). As an entrepreneur and business owner, you have a choice and can strategize on the best methods for creating a more scalable business to provide you the opportunities to catch a lot of upside earning potential.