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The following video transcript is generated automatically by a computer algorithm that learns and gets better on a daily basis. Please accept our apologies if some content below doesn’t make sense:

As you grow, as you in key increase your kitchen space, you start to see more economies of scale. You are finding all of the brands and the food items, which are your best sellers, where you’ve got decent demand, decent traction. The next step you’re going to want to look at is automating your operations. So there’ll probably be a lot of processes in the business which are done by hand, done by individuals. And as you grow, the amount of work coming into the in-tray for those people might start to get a bit overwhelming. So where you can you want to try and see, are there ways of simplifying or automating a bunch of these kind of things? Now, this is the point where you’re going to want to start to think about integrating software into your system. Are there bits of software that you can use to help you automate a bunch of these processes? This might also be the point where you start to think about creating a specific back office for your business. So this is a group of people who sit there and do a bunch of the non food preparation related processes in the business of this might be a job marketing, accounting, things like that. You want to try and create a better system of process management. So that is of all the things that are happening in your business. How can you better how can you make those more efficient? How can you streamline them? How can you make sure they get done in the right time? The more you streamline, the more you optimise, the better your margins are going to be. One good thing about automating these kind of operations and creating a backoffice means that you’ve got more time to start to think about things like marketing. How can you improve your marketing? How can you get it but are away? Can you try different channels, all of which are going to grow your business? And the other thing you can spend more time thinking about is expansion. So you’ve grown your kitchen space. You’ve grown your business process operations. Can you replicate this model in other markets? Can you expand to other areas? Next thing start think about is what we call vertical integration. So this is where you are trying to get all of the customers or as many of the customers as possible who are buying your products to interact with you directly, to come onto your platform. You want to be the people who have the relationship with them. So probably you’ll be selling a lot of stuff through the food delivery apps. Can you get people to jump across to your own app, your own website, your own email list? You don’t want to be paying that food delivery tax, food delivery app tax if you can avoid it. You know, they charge around 15 percent for the food delivery. Could you get them? Could you get these customers onto your own platform so you’re not spending that fifteen percent. That will give you more opportunities to sell them to make more money per customer to increase the lifetime value of those customers. So you do want to look to get people onto your own platforms. As I just talked about, that’s aimed at reducing costs. You know, you’re taking that 15 percent out out of the way. You can choose to spend that money in a different way. There’s probably a way in which you can spend that money to gain even more custom in a better way than these food delivery apps actually offer you a key wage and that of is having a larger marketing budget. If you could take that 15 percent and apply it to marketing, then you could probably increase the amount of demand for your product in the market. So vertical integration is the fifth growth stage. The final growth stage or the place where you’ll probably spend most of your time? Once you’ve gotten through the previous five points is what we’re calling here regionalisation. So this is how do you take this well refined machine and replicate it in other geographic markets? So you may well have started out in Town X and you’ve got your system pairing there. You’ve got great demand. You’re doing really great revenue. You’ve got great margins. How do you pick that up? Copy and paste and stick it down in town y. The best way to approach this is to try and start expanding to nearby areas. So don’t try and expand across the other side of the country. Try and find the closest place that is most similar to the market in which you’re already operating, because you know that your processes and systems and the way you set up work in this market. So if you can find something that’s nearby, very similar, then that’s got your best likelihood of success. Locally, food tastes are likely to be very similar. Ordering habits are likely to be very similar. The further away you get, these things might change. People in different areas, the country might have different tastes in food. They might have different times and different amounts of disposable cash to spend on food delivery and things like that. So grow in concentric circles. Start with one location. Perfect. Your model there. And then gradually grow outwards from that one point. And then as those little variations. I’m up in each of these different markets. You can adjust your overall process to take account of it. And then when you’re taking that next step a little bit further away, as you’re expanding these concentric rings, you can be solving the problems as you go rather than saying, okay, let’s pick up from here and go to the other side of the country and find a whole new set of problems we hadn’t even thought about.
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