One of the biggest problems for any entrepreneur is how to scale their business model. If your business does not have a repeatable business model, it will be very tough for you to grow your business effectively. So, the question is, what can be done to make sure that the business operates efficiently with minimum involvement? The solution is in building a repeatable model that will help you scale your business from 1X to 10X.

Prof. Paritosh Sharma from Bada Business Pvt. Ltd. presented an informative video, where he provided underlying concepts and tools that could help entrepreneurs build a scalable business. In this article, I will summarize the essence of his video so you can easily create your own repeatable business model.

 The Three Critical Elements of a Repeatable Business Model

To construct a business model that can be replicated, one must first determine its core elements which are **People, Process, and Technology.** These components are integrally linked and help in designing a system that supports growth and scaling with little to no input from you. Let’s see them in detail:

People:

The team has a major responsibility of executing the processes and managing the required technology to its best potential. They are the backbone of your business, and without the right people, your business won’t thrive.

Process:

The processes within your business make the operational workflows more efficient by optimizing the use of resources. Well-defined processes reduce the dependency on personnel and guarantee productivity.

Technology:

Technology serves as the enabler of both people and processes. Technology can enhance the scale of your business by not requiring you to be continously present; it equally improves your processes by automating tasks.

Real-World Example: DMart’s Success

Take, for instance, “DMart”, an Indian retail powerhouse, which has managed to implement a repeatable business model with great success. DMart emerged in the Indian market with a massive market cap of Rs 114,000 crore but only operated 119 stores in the country. Their success lies in focusing on building a strong team, having a powerful process, and leveraging technology to their advantage. DMart’s initial public offer increased their market capitalization to unprecedented levels, which signified how much value a repeatable business model brings.

 Essential Tools for Building a Repeatable Business

A business model that can be repeated can easily be created with the help of a robust **business dashboard.** A business dashboard simplifies tracking key performance indicators which contribute to the success of your company. These numbers can help guide business decisions aimed toward growth, even when a hands-on approach to management is not in place.

The following areas are recommended to be tracked on a business dashboard:

Sales:

Record the monthly sales projection for the current month, the last two quarters, as well as the last year for the same month. These numbers can show you growth with comparisons to set projections. Additionally, record how many people were part of the sales force this year compared to the last year.

Marketing:

Check the amount of leads produced this month, in the past last two quarters, and in comparison to the last year. Also check the number of people working in your marketing department and if there was an increase (or decrease) in revenue growth.

Human Resources:

Keep a record of the total number of employees, alongside the number of senior managers working in your company.

 Template For Constructing A Repeatable Business

After creating a business dashboard, the next step is to establish a framework towards making the business repeatable. The fundamental principle here is to break down all factors into three categories based on the level of control exercised on them.

Red – Very Critical:

These factors, which for the most part stems from the areas of business that are important for it’s success, are the most important. Focus and control should be given to these areas first.

Blue – Partially Controlled:

These factors require a greater amount of work and effort to fully optimize, and can be done so based on what is deemed necessary.

Green – Fully Controlled:

These factors are completely at your disposal. Once you’ve fully adjusted and optimized these areas, very little of your input will be needed, as these are fully controlled by you.

 Taking Action: Change the Status from Red to Green

This is how to change the critical factors from “Red” to “Blue” and eventually to “Green”.

Red (Critical Factors): Schedule phone or face to face meetings with your senior managers for about 1-2 hours a day. Make sure you resolve the critical factors during these meetings. By consistently addressing these areas, you’ll be able to move them into blue.

Blue (Partially Controlled Factors): For factors that are in the blue and are under your control, make sure to spend time(1-2 hours) every week with your managers to discuss ways of improvement. Gradually these areas can be turned into green.

Green (Fully Controlled Factors): These areas are fully green and under your control. However, to maintain your position, you need to spend at least 1-3 hours a month optimazing them with your managers. Once these areas have been optimized, your business can run with minimal effort.

Creating a Massive Action Plan

A massive leap in action is what helps construct the prototype of a business model in repeatable fashion. Steps to achieve this include the following:

Implement a Business Dashboard:

Design a dashboard that measures sales and marketing alongside human resource activities. It will help you monitor key aspects of your business.

Apply the Red, Blue, and Green Framework:

This color scheme can help manage and analyze business factors in order to prioritize them accordingly and regularly assess aspect so that they are controlled.

Once a person implements these tools and frameworks, the presence of the founder or head of the repeatable business is no longer required for the structure to keep growing and scaling.

For all wanting to take the next step to business growth, look no further.

In order to advance further in the world of business, you can “enroll” in “online classes” aimed at constructing business models with ease. A simple search on platforms offered by “Google” and other providers can present you with the “best” classes offered on business strategy and management. In these classes, you will learn how to devise a succinct outline and implement the right tools and strategies in order to guarantee your businesss’ success.

Conclusion

Establishing a business model that is repeatable and scalable requires long-term focus and investment. By emphasizing important factors such as people, process, and technology and using tools such as a business dashboard, you can build a system that operates effectively without your supervision. Make your plans today and use the tips shared by Prof Paritosh Sharma to change the way you do business and help you get what you need.

Categories: Busyness To Business