Modern Rich Way or Scalable Business
One of the most popular words among business people today is Scalable Business Model. Scale can be translated as multiplication. So, a scalable business is a business model that can easily grow and make a profit. In other words, it is one of the fastest ways to get rich.
In addition, amid the current uncertainty and economic instability, businesses urgently need to transform their operations into a scalable business style. Only then will you be able to run your business in the face of uncertainty and earn a regular income at the lowest cost?
So what is a scalable business, and why is it important?
Decades ago, if you wanted to start a business, you had to open a shop and start a business. Sell a product or service. When it succeeds, it will open more branches. Many billionaires have sprung up by selling shares on the stock exchange.
But with the salient advantages, you must also know some of the disadvantages. For example, let’s say you open a grocery store in your neighbourhood. You will eventually reach your store limit by selling a full range of products like this. So the only way to make more profit is to rent or buy another store. This will make the purchase cost less.
As another example, if you run a restaurant and make about 50 lakhs a month from your restaurant, you have to invest in another place to make another profit of 50 lakhs if the restaurant is full of people.
That is why there are limits. In addition, this kind of business is organized by place staff. As stores expand, so do the overhead costs, another type of cost. For example, when there is only one grocery store like before, you can do it yourself, but when there are five stores and more employees, HR, Admin department, Account, Cash, and Finance departments manage money. Audit teams will also be deployed to inspect stocks.
A scalable business is a business model and framework that maximizes profits without increasing operational expenses and overhead costs. These business models have emerged with the advancement of technology, which is why scalable businesses are mostly technology-based online businesses. Still, some have evolved from traditional to scalable business ventures.
So, what are these scalable businesses that can thrive?
(1) Software and games.
There is an online game that I play regularly. This is an archer game called Archero. The game was a huge success, and in 2019, it even won the Google Play Store Best Game award. This game has regular players from all over the world, and new players are being added. The main income source is watching some 30-second ads if you want some of the items in this game. You can also upgrade your level by buying gems. In other words, you can double the profits from multiple people without expanding your space or store.
That’s it. Even Facebook, including Microsoft, Google Services, and other mobile apps, are trying to double their profits without increasing operating and overhead costs.
(2) Online based work.
These include online shopping, which is becoming increasingly popular these days. The next time you read a post, the more you earn, the more Instant Articles you write. Create a blog on YouTube. You can earn money from ads depending on the number of viewers, whether it is a Facebook ad break or not.
Some include watermarking your designs or photos online and reselling them to as many people as you want or as a design. All online businesses can do this without spending a lot of overhead costs to increase profits.
(3) Subscription system Monthly fee system.
This is one of the most popular scalable business models today. For example, you can pay six months’ salary in advance for one year. Video Education, books, Business Advice And regular submissions. Or upload thousands of movies and watch how much you pay monthly in one month.
These business models used to have a monthly fee at the library and how many books you could borrow a day. Gymnasiums also have a similar monthly fee. The advantage of a monthly fee is that you can profit beyond your business limit. For example, a full gym can only accommodate up to 30 people at a time, but the monthly fee can be doubled to 60 people.
This is because people who come to play every day are rare, and their free time is different.
Currently, many social media businesses, such as Facebook and Viber group, provide a variety of products or services to thousands of people for a monthly fee.
(4) Online Course.
As the number of online users grows, more and more people are getting acquainted with online entertainment and education. There are a lot of people out there today who are sharing their skills in an online course. The advantage of doing an online course is that you only need to shoot once, and the quality of the teaching is consistent with each class.
(5) Digital Platforms.
This is the kind of business model where you get a commission by being technically savvy, creating online and digital platforms, and connecting sellers and buyers. For example, the Amazon online shopping platform connects sellers and buyers and charges a small fee for each transaction. With so many transactions happening daily, this platform can generate many times as much revenue.
These platforms can be found in many fields today. For example, Foodpanda to buy food, Grab for travel, for education. Online Learning Platforms, Job Search Platforms, Real Estate Platforms Like Myanmar House, and Various platforms such as One kyat and Zegobird, which can sell all kinds of goods, are also found in Myanmar.
Making money with money: You can buy and lease assets into a scalable business. This is because, for example, if you buy and rent an apartment worth 20 million, you can get 120,000 a month; if you buy two apartments, you can get a net rent of 240,000. It has no additional overhead or operational expenses, only an initial investment increase. Other investments are similar.
Transition from traditional business to scalable business.
In the current political and economic instability, it is difficult for businesses to grow, and it is risky to expand stores. For this reason, traditional businesses have to make the necessary changes to make their business scalable.
- Changing the process.
The easiest way to find out is to market on Facebook, the social media platform. You do not need to rent another shop for this. It can also increase sales. More cost-effective businesses are building and selling their own IT business platform. For example, starting your own sales website, Business name, or Creating a mobile application. If you can not do this alone, you can start partnering with third-party platforms. For example, if you run a restaurant, you can partner with platforms like Food Panda and Grab to order food.
- Product change.
Just as you can transform these processes into a scalable business, you can customize your product to make it a scalable business style. Suppose you are selling a popular dish or local food. Take bitter gourd, for example. Then, you can expand your business by redesigning ready-to-eat noodles and selling them at any retail store like G&G, just like you would with a regular bakery. Currently, there are even ready-to-eat pizzas.
For example, Thang Yee, a natural drink in Myanmar, can only be obtained by sitting in palm juice shops. It will take a little longer if you carry palm juice in a bottle. When left unmanaged, they can be left astray and lose the right path if you can find a technology that can be bottled and sold nationwide. It is a product modification. The main purpose is to clarify that technology-based ways to increase revenue without running out of expansions are becoming increasingly urgent today.
In short, business models that have been able to maximize profits without expanding Opex and overhead costs when expanding their business are considered scalable businesses and have historically been considered a wealth of modern times. Adequate knowledge can easily overcome serious difficulties.
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