Kitces and Carl - Real Talk for Real Financial Advisors
Scale Your Business, Leverage Yourself, Or Just Grow?: Kitces & Carl Ep 125
Nov 16, 2023
In this episode, Michael Kitces and Carl Richards discuss the challenges and misconceptions of scaling a business, and the importance of leveraging systems and processes. They explore the possibility of scaling a business without hiring more staff, and highlight the success of large financial firms with a scalable business model. They also discuss the importance of advisors and generating revenue in a scalable business.
36:12
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Quick takeaways
- Scaling a business involves increasing revenue faster than headcount, requiring efficient use of resources to generate more output with less input.
- Leveraging oneself in a service-based business entails prioritizing high-profit clients and delegating tasks effectively to maximize efficiency and income.
Deep dives
Differentiating between growing and scaling
The episode explores the difference between growing and scaling a business. Growing involves increasing headcount proportionally to revenue growth, while scaling involves increasing revenue faster than the increase in headcount. The hosts emphasize the misconception that scaling means not having to hire more staff, highlighting that scaling requires efficient use of resources to generate more output with less input.
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