15d • General 🌎
The Scale Paradox
Most people think more revenue equals more success. But in a service business, more clients usually just means more staff and more headaches.
If your costs grow as fast as your sales, you do not have a business. You have a high-pressure job.
The secret to escaping this is Value Arbitrage.
Stop selling your labor and start selling the gap between Perceived Value and Actual Cost.
The Old Way: You sell a service for $1,000 that costs you $500 in manual work. You are just trading hours for dollars.
The New Way: You provide $1,000 in value using a system that costs you $50 to run.
This works when you provide assets instead of "work." Think about data, high-volume content, or infrastructure.
These are things the market values highly, but technology has made cheap to deliver.
The goal is to move from a 20 percent margin to a 90 percent margin.
You do that by becoming a provider of systems rather than a manager of people.
Stop building a company around manual tasks.
Start building it around assets that work regardless of your personal hours.
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The Scale Paradox
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