Master Efficiency, Leverage, and Scale
You can always produce more and be more efficient than you previously thought. Therefore, you must prepare your infrastructure early on if you aspire to grow. With greater scale, you can accomplish more with less effort, even though it will still take considerable work to achieve anything worthwhile.
The idea behind leverage is that as you amplify your success and money, the resources you control become even more of a draw to vendors as well as potential employees, partners, customers and investors. This means that each dollar at a larger company should go farther than the same dollar at a smaller company. The more resources you have, the more attractive you are to the business world.
You can create leverage, and with it, you will be in a position to extract better prices on products and services, find better candidates for job opportunities, and attract more demand from prospective customers. Leverage facilitates additional pricing power and even enables further discrimination in your choice of customers.
If you are too good at growing your business and you feel it’s beginning to move too fast to maintain quality, then your prices can always be raised to new customers. In fact, the high demand for your services proves either you give great service, are too cheap, or are just a good overall value. In any case, this leaves you leverage for additional pricing discrimination. Another option would be to re-focus your marketing just on the most profitable niches you’ve tested, so less time and fewer dollars are spent in less profitable areas.
Over time, you can invest double the money and energy in the most profitable niches you’re developing (double down) and dump the remainder. Alternatively, you could keep all your niches fully operational, as long as the parts are compatible, and your investment dollars should go further.
