So I got asked an interesting question yesterday. How would I scale my current online business efforts if I had 100K? 250K? It kind of threw me because:
1 - I've never thought past having 5-10K money to reinvest in SEO, content creation, and PPC
2 - I have done it long enough now to know just because you do something at 100 or even 1K USD doesn't mean it will equivalently scale if you simply double the dollar amount. IE I have one PPC campaign that from 1-$50 a day I can predict the outcome. From $50 to $100 per day the ROI significantly decreases.
Any pointers out there or lessons learned from those of you that have been around for a while?
Building and working on established sites will increase revenue
But always remember work every day (if you can) on the sites
Sites need to be maintained - that means - regular new content
Sites need to be promoted - work with your promotion budget
bogart (25 March, 2010)
To scale a current business, or if you buy an new business and want to scale it. One way is to add more value/benefits to products/services to current customers for an increased payment relative to the valued added to the product/services. Finding new customers is much more costly than keeping the current happy
That is scaling. Getting more in return while lowering expenses.
Scalability isn't so much an increase is resources. But a process including procedure and manuals to have the system to grow.
If anything, its a good exercise to take a step back and look at the big picture for all of the web efforts I undertake to properly align to a strategy that the lower level efforts are contributing towards.
Thanks to all for the good info.
small-scale business is easier to manage and its more open to innovations
The key to scalability is infrastructure. That could mean building better software systems to manage growth or it could mean hiring more people.
If you have a $10K business and you want to grow it to $100k, you must first consider what you will need to manage the business once it reaches $100k. If you do not plan properly, you will create bottlenecks and inefficiencies.
For example, you could plan to acquire 100 new web sites with proven traffic and revenue, but if you cannot manage and promote those web sites properly, you will probably lose a lot of potential business and miss a lot of opportunities to maximize revenue.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin