Your business model ultimately determines how your company will profit from the products you make or the services you provide, outlines the mechanics of how you will be paid, and how much money your company will make in a given period. It also sets the stage for five items critical to a company’s potential for real growth – which I have playfully punned as the “’Bilities.” In the last blog, I talked about Scalability – you can read all about that here. ‘Bility number 2 is Replicability…
Replicability refers to the ease with which you can replicate, or copy your business model. Can you set it up exactly as it is, in its original mode, in various situations, localities, and circumstances, and still run it efficiently? Or is your model so unique that it only functions under certain specific, limited conditions, without which it doesn’t operate effectively? That is the basic crux of Replicability, and this is the premise Franchises are built on. So you can see the enormous importance “replicability” plays in the success (or failure) of a new or small business. After all, where would we be without McDonalds, Taco Bell, Chipotle, UPS stores, Great Clips, and so many, many more. Here, you can see that Scalability and Replicability are closely related. You scale your operation to provide the basic framework to be functional and operational, and then, if you choose, replicate that basic framework in a new region, channel, or with a new partner. By replicating, you are essentially multiplying your basic business model’s revenue-generating capability, and in this manner, driving growth. And growth translates to success, and that’s why you went into business in the first place right?
To learn more about the benefits Factoring offers to business owners as they scale and replicate to drive more growth, please check out some of the other blogs on this website, or you may contact us directly at firstname.lastname@example.org. You can also find me on Twitter and LinkedIn.
And don’t forget to stay tuned for our next blog when we address ‘bility’ number 3 on our list: sustainability.
Thank you and best wishes for continued success,