Prepare to double
CD Baby doubled in size every year for the first six years. Both customers and
profit, almost exactly 100 percent growth each year. It was spooky.
Because the business needed a warehouse for the CDs, I always had to buy more
shelving. Each time I did, I'd buy twice as much as I had before.
It always fil ed up fast. Even when it got warehouse-sized. When I had fil ed a
5000-square-foot warehouse, I rented 10,000 square feet. When I fil ed up
10,000 square feet, I rented 20,000 square feet. Even that fil ed up fast.
But no matter what business you're in, it's good to prepare for what would
happen if business doubled.
Have ten clients now? How would it look if you had twenty at once? Serving
eighty customers for lunch each day? What would happen if 160
showed up?
Notice that “more of the same” is never the answer. You'd have to do things in a
new way to handle twice as much business. Processes would have to be
streamlined.
Never be the typical tragic smal business that gets frazzled and freaked out when
business is doing wel . It sends a repulsive “I can't handle this!”
message to everyone.
Instead, if your internal processes are always designed to handle twice your
existing load, it sends an attractive “come on in, we've got plenty of room”
message to everyone.
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