Scaling Low Margin Businesses
By Brian DeLucia
Whether it is us or others within our family office community, we are often pitched businesses with low margins.
They often seek to raise capital to expand the business. But the biggest mistake is that these entrepreneurs seek capital to continue scaling the same low margin model without any further evolution.
You have to evolve beyond that model and create a funnel of higher margin services that evolve from the initial low margin touch.
That is difference between a low margin business settling into mediocrity versus scaling into a much higher margin company.