The Key to Scaling Service Based Businesses

Summary

• It's all about the people and keeping the business model as simple as possible.
• I've never seen someone scale a large business without having on-site operators who are incentivized like owners.
• Examples like Chick-fil-A and Panda Express show operators can make around $200,000 a year.
• This model makes the business really profitable.
• For most service businesses, you can aim for operators to make about $100,000 a year.
• These operators are likely to be very happy with that income.

Video

How To Take Action

I would suggest implementing a few key strategies to grow your small business or improve your personal growth journey.

First, focus on the people. Your team is crucial. Hire on-site operators for each location who are incentivized like owners. This means they get a share of the profits or other incentives tied to the business's success. When people feel like they own part of the business, they're more motivated and committed.

Next, keep your business model simple. Complexity can bog you down and waste time. Look at successful examples like Chick-fil-A and Panda Express. They have operators who run each location efficiently and make around $200,000 a year. Aim for your operators to make about $100,000 a year. This is a fair, motivating income for most operators in a service business and will ensure they are happy and productive.

Also, make sure your systems and processes are easy to follow and understand. This will help your team to be more effective and efficient. Less confusion means faster growth and more profits.

Lastly, continually invest in your people. Provide them with training and growth opportunities. When your team is skilled and knowledgeable, your business benefits greatly.

By focusing on hiring the right people, keeping things simple, and investing in your team, you can grow your business effectively and sustainably.

Full Transcript

it's all about the people and making the business model as simple as humanly possible so I have not seen somebody scale to huge size without having boots on the ground operators per location that are incentivized like owners same like Chick-fil-A right like they basically own them all penda Express he owns them all but they have operators in place you can look up their com structure but those guys make about 200ish a year and that's a really profitable business and so I think for most service businesses you can probably get to 100ish a year for them like that's where they're aimed and they're probably really thrilled