Motley Fool Money cover image

Making sense of financial statements. June 30, 2023

Motley Fool Money

00:00

How to Scale a Service Business

I run a law and knowing business. My costs, my employee costs go up for every new sale that I make. That's why I'm a little bit against services businesses. Well, the, they don't scale very well. And so what you find is you get this real disconnect between the growth at the top line and the Growth at the bottom line. So many business, same example. Let's say I've got $100 in sales and I've got a 50% margin, 50% growth. But I've also got $50 in fixed costs. So I'm making $ 100 in sales, but I'm not making any profit. Now let's say that my profit grows

Play episode from 27:24
Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app