Saturday, February 24, 2007

Once skilled, Scale. Once scaled, Diversify.

I am picking up good skills at work. Sales is a great skill to have in my repertoire. And I feel the need to move onto bigger deals. The need to scale.
Once the basics are learnt well, I have realized that its all a matter of handling scale that leads to growth. Eg. Take a small retail shop and a large one. Basics of supply, demand, stocking, pricing, promotions, etc are all the same. But a small-time fellow remains small. Does not become a Walmart, simply because he lacks the ability to scale.

And once Scale is realized, and a mega business is running well, the need is to diversify. Again, the fundamentals of business remain the same. The specifics may vary, but the basics are the same. And the idea is now to apply the skills and scale to a new business. Diversify.

The Tatas, Birlas, Mittals, etc, etc are all classic examples. Grew a small business into a large one. And then grew many other businesses. Skilled, Scaled, Diversified.