For an entrepreneur, ideas related to scalable businesses should be present in any of his business plans. The reason is very simple and comes from analyzing the advantages of working on your project versus someone else’s. The rental of the professional activity has an iron and immutable limit: the time available, without the possibility of extension beyond the fence imposed by 24 hours a day.
On the contrary, working for your project offers the possibility of generating income not determined by the amount of time spent. Here’s a much deeper exploration of the opportunities the market provides to produce profitability. And that this is independent of the strict compliance with a monthly work schedule.
The meaning of scalability when launching an entrepreneurship project
Nothing better than an example to understand the meaning of the term scalable. Luis has worked as an employee of different publishers as a translator and proofreader of originals. The personal need to materialize his publishing project has led him to create his own company as a sole proprietorship.
Before, Luis’s income was guaranteed by an employment contract that established rights and obligations towards his employer. But now, that security no longer exists. With his work, he invests in the acquired knowledge and capital that he intends to make profitable with the returns provided by the clients.
Capital investment must be made before any profit derived from the launch of publishing a book. Editing costs end when a book is delivered to the printing service. When the market response is very positive, the various subsequent reissues are free of that investment already made.
The business benefit thus rewards the risk assumed when accepting an original for publication. At the project level, the scalability is derived from the dimensioning of the investment effort (knowledge, time and capital) concerning the ability to generate unlimited supply with minimum costs (reprinting and promotion).
Most of the projects on the Internet or related to digitization enhance this scalability effect. Hence, it has enormous appeal for people forced to create their job with a self-employment initiative.
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The digital world, self-employment and passive income
Communications technologies have had a huge impact on business activities. There are three effects that entrepreneurs have taken on almost a magical character:
- Lowering costs to generate sales.
- The automation of business processes.
- The birth of new digital materials that can be the object of economic activity.
From this innovative cocktail for business, the concept of passive income was born. The real meaning can be very nuanced, but it points to a concrete and objective phenomenon crossed by the following properties:
- Minimum initial investment and even lower maintenance costs.
- Recurring income.
- Continuous global network activity.
Avoid falling into excessive generalizations or simplifications. For each model, there are endless details that characterize a commercial activity on the network. There is no income without prior, well-planned training that is susceptible to being affected by changes in the market. In the new economy, everything ages before and nothing is forever.
Scalability in entrepreneurship
The key that makes a business scalable is not depending on a fixed or limited resource. There is no scalability in the professional activity of an interpreter or translator, as their skills or abilities are not transferable, and time is not extendable. But the commercial exploitation of an info-product is scalable, such as with an application for mobile devices.
The lowering of production costs, which has come thanks to the technological revolution, does not stop growing. The larger the ecosystem of services on the Internet, the more possibilities to find those who want to integrate into it for the first time. For each sector of the market that it deals with, others are created due to the success of previous initiatives.
At the same time, when a new need is discovered, there is a race to meet it at the lowest cost. Artificial intelligence, cloud services and data mining do not leave any sector of the economy without an effect on its activity. Entrepreneurship today is the only way to moderately secure a position in the market of the future.
From the lessons learned from the spectacular growth of projects such as Facebook, Amazon or Google itself, examples of the binomial formed between disruptive business by innovator and scalability are obtained. A good part of the current economic activity rests on business models that have reinterpreted traditional acting in the market.
Open opportunities for self-employment
The information age has opened up an enormous amount of possibilities for self-employment. But neither is it necessary to derive from this statement an interpretation that suggests ease. Even when a business plan has all the intellectual endorsements on paper, contact with the real economy is always accompanied by uncertainty.
An entrepreneur must always start with sufficient means to do things. The presence on the Internet is not equivalent to occupying commercial premises in a town or city. Visibility must be earned with initiative, strategy and perseverance. And, although in very discreet and reasonable amounts, it is inevitable to make investments. They are responsible for accelerating this process to produce commercial profitability as soon as possible.
The rise of methodologies such as lean startups revolves around prototyping solutions and partial validations obtained from the client. The ease of integrating this two-way communication in each project is another advantage that has come with the digitization of the economy.
Strategies to increase the scalability of a business
The scalability of business results from managing well a set of variables that intervene in it. There is graduation between the results obtained with the anticipated forecasts in the project as in any other quality. The degree of satisfaction will be reinforced by taking the following measures with special attention:
- Take advantage of the commercial potential of digital products. For both direct income generation and promotional work, an info product is an excellent means of earning consistent income.
- Collaborate with other entrepreneurs in activities that may be concurrent. The massive development of affiliate programs follows this orientation and is imposed by the insufficiency of the finances of large companies to reach the maximum possible audience. To make money online, you have to sell something and, when you don’t have something to sell, the best thing to do is to help those in it.
- Learn to find, select collaborators and delegate tasks to them. The skills to form teams of professionals committed to common goals are the first step to grow in these economic activities.
- Use platforms responsible for disseminating and commercializing digital products, assuming some parts of the commercial tasks. Software application department stores are an example of this Internet business opportunity.
Professional areas that generate many entrepreneurship initiatives
Not all commercial activities have the same facility to be transferred to the Internet easily and. However, some maintain a special connection bond with this medium, and it is where they find the ideal channel to reach new customers. These are some very vigorous activities for employed or unemployed workers interested in taking that step:
- Online teaching: It is a field that has seen enormous growth in recent years. The competition is strong, but those who know how to differentiate themselves have a spacious area to compete and grow.
- The generation of computer applications: It is a market that was practically born in the information age, and, logically, it is comfortable in the online environment.
- Rank and rent of digital content such as web pages, blogs, ebooks etc. It is about putting informative content in good positions for its subsequent commercial exploitation. Advertising is an indispensable ally for this sector.
- Ecommerce: It is the inevitable step from the physical store to the digital world. Payment methods and familiarity with the customer environment are conducive to the maturation of e-commerce. It is a good time to lay the foundations of a business on the web with the support and experiences of thousands of previous initiatives. There is already a body of scientific information on this channel to close sales and gain market share.
In conclusion, scalable businesses, thanks to the Internet, have had an extraordinary push and development. The projects of millions of entrepreneurs depend on finding a fit in the changing and competitive market. The difficulties are many and of a very different nature, but in the same magnitude are the fruits of well-worked success. As the classic saying went, fortune will accompany the bold in the economic changes that result from this century.