Let’s have a look at some scalable business ventures. As a blogger, I came upon a business concept that scales rather easily and effectively. Using the power of the Internet and search engines, I can reach thousands of individuals every day with my thoughts.
Here’s what I mean by “scales” effectively:
A scalable business may service exponentially more people without incurring exponentially higher costs for operations. Scalable enterprises include digital items, courses, and blogs.
So, in this case, the product would be information in the form of articles. With the exception of the higher expense of web hosting, my site may reach exponentially more individuals as it matures and as I add more material.
When I first began blogging, I didn’t give it much thought. In fact, when I first began, I wasn’t really sure what I was doing at all. I spent hours trying to make viral Instagram posts feeling like social media was the only way to reach an audience, but there is always more than one way to build success.
I simply thought that if you worked hard enough and got a little lucky, you could convert any business idea into a success story. I had no idea that a particular business’ qualities may impact the amount and pace of success.
Over the last several years, I’ve come to understand the need of scale when attempting to establish a passive income that might lead to game-changing financial independence.
Scalable Business Concepts
Let’s take a look at some of the ideas with great scalability. Later, we’ll look at a few that don’t often scale well. Then, with a few modifications, we’ll show you how to turn a non-scalable concept into a completely scalable business idea.
Let’s go into more specifics!
Did you know that Microsoft did not create the overwhelming majority of Windows machines in use today?
Instead, the vast majority of Windows PCs are manufactured by a large number of hardware manufacturers, each of which pays Microsoft a license fee to use their operating system.
As a result, Microsoft conducts the job of developing the software once and then sells it again. They let other fools deal with the razor-thin margins that come with hardware sales.
Guess what happens after that? When a consumer purchases one of those Windows computers, they discover they need Word, Powerpoint, or Excel.
What exactly do they do? Pay Microsoft for a one-time use Office license or subscribe to Office 365.
You may place yourself anywhere you want in the Mac vs. Windows debate, but you can’t dispute that this is a very scalable business model.
And if you know how to code, you can replicate Windows’ business model. Here’s a list of softwaret hat might be written or programmed once and then sold repeatedly:
- Chrome add-ons
- Gmail add-ons
- Applications for Windows or Mac
- Children’s educational software
- WordPress Themes
- Mobile Apps
- WordPress Plug-Ins
There are plenty more options than these. There is basically an infinite supply of scalable company ideas that might make you substantial money if you have any type of computer expertise or the ambition to learn how to code.
2. Blogs, Podcasts, and YouTube
As I indicated in the opening, when I originally began my blog, I had no clue I was stumbling on one of the finest business ideas for scalability.
With each month that passes, each post that I produce, and each backlink that I receive, my site has the ability to gain domain authority and reach an enormously greater audience.
My revenue would increase dramatically if I went to bed tonight and woke up tomorrow morning with twice the site traffic. However, my costs would essentially remain the same.
This is because I mostly sell ideas and knowledge.
It takes me the same amount of time to create an essay for 1,000 people as it does for 1,000,000 people. That’s the strength of companies that are founded on sharing information and ideas.
Podcasts, YouTube, and LinkedIn Learning are excellent channels for idea exchange.
If you’re stuck for ideas, just ask yourself, “What am I an expert in?” “What do I care about?” Alternatively, “In what areas am I particularly prepared to educate others?”
3. Digital Downloads and Designs
If you have a lot of amazing ideas that you share on your blog, why not collect some of them into a self-published eBook? You may make $5, $10, or $15 each download instead of a few cents every page view.
Again, the job is done once and pays out several times. There are no printing or publishing charges, as there would be if you were attempting to sell a physical book. Simply put, people will pay you to download a PDF.
That is a scalable business concept.
People are willing to pay for digital versions of things other than books. Here are some more suggestions:
Original artwork/ NFTs
People who work in creative areas or with service-based organizations, as we’ll see later, might struggle to identify scalable business models that succeed. However, transforming your creative work into a digital download of some type is a terrific method to easily expand your company.
Okay, everything we’ve said thus far has been leading up to this.
Blog articles may be a terrific method to start making money from the information you provide if you are in the “idea” company. A smart next step is to compile some of your greatest ideas into a digitally downloaded eBook.
Courses are fantastic because they have the potential to generate even more cash per individual than eBooks. People who pay for courses often want to master skills that they can use to make a living. As a result, people are often prepared to pay extra for the knowledge they obtain.
While a decent eBook may cost $10, an exceptional course may cost $199 or more. And, contrary to popular belief, creating a course is neither tough or complex.
There is a plethora of excellent course writing tools available that may assist you in quickly creating a snappy, well-polished course.
Courses are also a great way to express yourself if you have a “coaching” tendency. Scaling a coaching or consulting firm may be tough. Coaching, on the other hand, might make sense as a scalable business concept when used in the form of courses.
Nobody wants to purchase goods separately these days. Subscription services, on the other hand, are the rage.
As someone trying to establish a scalable firm, you may take advantage of this. Subscriptions are now available for almost everything, even items that no one would have imagined giving as a subscription in the past.
You may currently be purchasing a membership for your:
Meal preparation kits
Wine is a personal and commercial program.
Cosmetics, Books, or Candles
Stickers….. (yes, stickers)
Do I believe any of these products are absurd to pay for on a subscription basis? Yes.
However, as a potential future company owner, you may capitalize on this trend. People are often prepared to spend more for products on a monthly basis than they would if they purchased each product separately. Furthermore, they often keep the subscription running for longer than they anticipated merely because it is difficult to cancel. (However, please make it simple to cancel so that you do not alienate your consumers!)
If you want to start a physical goods store (which is often a horrible business plan in terms of scalability), developing a subscription model could be a good idea instead.
6. Rental Properties
Investing in a rental property is at the bottom of the list since it often requires substantially more funds than the majority of the other options mentioned above.
However, it has the potential to be a fantastically scalable firm.
After you’ve paid off the property, your monthly rental income is almost all profit. You might be receiving payments for years and years after your property has been paid for.
Yes, you will have to deal with troublesome renters from time to time, and there will be some repair costs. But I still like the rental property industry as a whole.
And, if you reside in a region where short-term rental services are permitted, putting your home on websites like Airbnb or HomeAway may possibly double or triple your monthly revenue.
Investing in companies that you believe in is an excellent approach to generate revenue on a large scale. You make a one-time investment in exchange for a portion of all future earnings.
When most people think of investing in companies, they envision buying stocks, mutual funds, or index funds. This is an excellent approach to invest in companies.
However, the stock market isn’t the only venue to invest in emerging enterprises. Equity crowdfunding is a new and exciting method to invest in firms and generate passive income.
While you may not have enough cash now to generate a sustainable income from your assets, you may live off of them in the future.
Inefficient vs. Efficient Scale
A horrible example is dry cleaners. Every street corner has one. If the local dry cleaner wants to service more customers and grow sales, they will run into certain inherent restrictions (i.e. size of their equipment and location, the number of people living in close proximity, etc.).
To expand beyond these early constraints, they will need to recruit more people and create more facilities. A cleaning company’s operational expenses are strongly related to revenue growth. It’s difficult to get away from it.
Assume a dry cleaner makes $200,000 in revenue per year. After costs, that might offer a good living for you and your family. To break beyond the $200,000 barrier, you’d have to spend significant expenditure and risk (i.e., acquire another facility and recruit a new group of staff, including a manager since you can’t be there yourself).
The author of The Millionaire Fastlane, MJ Demarco, states this regarding scale:
“If you want to gain financial independence, you need a company that SCALES into the sky…in other words, it must reach new heights to reach the people.” Millions of people can see the world’s highest tower. What is the height of Facebook? In contrast, how tall is that modest business on Elm Street? Millionaires are made on a large scale. The greater the effect, the higher the structure.”
In the case of the dry cleaner, a single facility will never be able to service millions of people. It will almost certainly never be able to service more than a mile or two radius. It just will not scale effectively.
I understand that not everyone aspires to be a billionaire. Some folks wouldn’t mind creating a career that they like. Especially one that comes with the liberty and fulfillment of having your own company. I’m still in this category in certain respects, and I can tell you I enjoy it.