The Leadership Stack Podcast

Ep.140: When To Scale Up Your Startup


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The more supply there is, kasi linagay mo siya sa grocery stores, the less demand. If there's less demand, then your price, you cannot increase it really that well. Okay. But you're right, I realized after you answered my question, iba pa rin ang direct selling. I should find distributors, resellers sa iba’t-ibang area. My fear is hindi lahat may freezer to store it. Also thinking of offering the product sa mga shabu-shabu restaurants, but I don't know how to start with that. What's your opinion?

In my opinion, you are in a scale-up process. Parang startup siya na you're trying to scale it up to see how you can balance it out. This has happened to me before in SEO Hacker. And this is because when we have new clients tapos saka palang ako maghire, magtrain pa kami ng mga bagong tao, maghahabol kami.

So what I do is, there's a dilemma. Do I hire first? Para pag nakakuha ako ng bagong kliyente, may tao na akong ready to take on the client, ready to take the load. Para hindi kami overloaded, kaming mga team members na nandiyan na. Or do I wait to get a new client before I hire? Because hiring a new person tapos wala naman akong bagong client papasok, is more of an expense. So it's like a chicken and egg problem and you're actually there in that area right now because you're actually selling 1000 packs. Yeah, 1000 packs for one year going to and from Singapore, you made it at least sell it out. You don't have a problem there.

But now you're thinking if you're going to get the MOQ or the minimum order quantity, papadeliver mo dito via container, 2500 packs na ‘yon. And you're not sure kung kaya mong ibenta or ubusin lahat agad. In terms of freezer, if you're going to buy freezers, CapEx na ‘yan, capital expense. Meaning you're gonna have to pay for it, you're going to have that equipment for a long time, assuming you bought a good quality freezer, so hindi naman ‘yon nabubulok. My opinion is, if you really want to scale, there's risk there.

My book, 50 X Your Business, which you can buy from Amazon, that's the latest book that I published. That's all about scaling up. That's all about the risk of growth. The capital injection you need to put in when you're growing your business or your company. There is a new risk, there are new capital injections when you're scaling up. It is much like starting up, unfortunately, sadly.

So it's difficult, but it's also a very exciting time because right now ang maganda naman doon, may pondo ka na kasi nakabenta ka na ng 1000 packs. It's not like you didn't have money, now you have money. It's just that you're going to risk it again. That's where we get the term na, pinapaikot ang pera. You have to reinvest that money you made into assets, equipment like freezers. Don't spend it on new cars. Don't spend it on new gadgets. Don't spend on things you want. Liabilities. Spend it on assets.

My suggestion, if that freezer's going to go a long way and it allows you to sell the 2500 packs, definitely go buy the freezer. If you're going to want to have distributors, my suggestion, you get a franchise consultant and ask the franchise consultant, how am I going to do this? I'm not an expert when it comes to franchising, but that's one way you can go. If you want distribution centers who will help you distribute your product, they have to have a profit margin, they have to have their own freezers, which you may provide, or you may ask them to buy as their capital expenditure or their capital investment. And then, you have to have a system of transporting that product to them, making sure they're stocked up, hindi sila nauubusan ng inventory, making sure that they can sell online with whatever channels you're using or you may be using right now. Those are things that you can do.

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The Leadership Stack PodcastBy Sean Si

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