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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:

Another thing that has been big in the Elon Musk world recently is Tesla, Oxly and Tesla just had their annual annual shareholder presentation, shareholder meeting. And what they were calling their battery day, which is where they released details of their sort of improved battery tech that’s coming down the line just prior to that reveal. Elon Musk tweets this. The extreme difficulty is scaling production of new technology is not well understood. It’s 1000 percent to 10000 percent harder than making a few prototypes. The machine that makes the machine is vastly harder than the machine itself. And obviously that he’s referring to the noley. That they have to do sort of, you know, cutting edge science and doing brand new stuff to try and sort of improve the performance of batteries. But that’s then taking that science and making it be able to be manufactured at immense scales as described by the names of their factories, like giga factories and all the rest of it. That, you know, he’s saying that the harder part actually is, is to. Is to design the system, which is the factory which churns out these better, newer batteries at the sort of scale they needed to be produced in order to produce the outcomes of the company. And obviously, you and I are not sort of doing cutting edge battery science. Most people aren’t. If the business that you’re involved in is, you know, somewhat mundane, that it might not feel this is particularly applicable, but actually your job as an entrepreneur, I think that you should be spending most of your time on is building the machine, which is your business, and then your business is producing the products or services or whatever it is which generates the cash. And so you’ll you should always try and be one step removed. And I think this this kind of information is applicable because you are essentially building a machine, a factory, a system, a system of systems, which is your business, which involves, you know, sharp edges and fuzzy decision making. And, you know, people with all of their sort of fun and games and emotions and trials and tribulations, et cetera, et cetera. And that you shouldn’t you should always, you know, realise that it is hard. It’s hard to do that. It’s hard to build. It’s hard to build a factory which produces something, the outputs on the. You know, it’s just as hard to produce a factory of ideas and humans and all that kind of stuff. And but you should always have your eye on all or keep in mind that that is actually what you’re doing, because, again, it’s very easy to get stuck in the weeds of actually producing the widget. So the things at the coalface that you don’t you end up firefighting and you don’t have to go on to sort of come up and look at how the whole thing works. Have you found it, you know, sort of going from small, small beginnings to actually sort of building the organisation, the infrastructure to the to sort of try produce the end result and some of your companies that you’ve been involved with? Yeah, I think it’s important to bear in mind. Both your product and the outside world or the technology, let’s say, and then the scalability of that. So most of the biggest companies today are software based businesses. And that’s because it has a unique ability to scale. So you want to cut some piece of software, you can serve, what, more and more clients at a marginal cost? Of course, it’s not free. I mean, you used to have the decent investment, but over time, you know, there are many examples, Google, Apple and almost anyone that like Netflix, et cetera, they enjoy those benefits from scaling software. But when it comes to some goods or manufacturing, it’s it’s it’s way harder. And you should always keep that in mind. So how are you plan to scale it nowadays? Supply chains are also an issue because of protectionism and all that. So do something that you should really be a mind if you’re dealing with goods, especially if you are dealing with services. And so. OK. So how will that as you say, you are building a service based company, let’s say our nation’s marketing agency. So how we are going to ask Cayle that? Because if you don’t want to scale it, then you should consider other routes, like becoming really professional and knowledgeable in in some verticals off their marketing space. So you can be the expert on charge as much per hour as possible for that. But if you go for the agency where you have multiple employees and this and that, your your role will change. And if if you are the expert, you know, and and you don’t have systems to pass on that knowledge efficiently to others so that you can hire like juniors or semi senior managers, because if you hire only all experts like you, all your rights will be super high and and therefore you will have less clients. And these problems will work out better for each of them to work out individually than being an agency is no point on it. So there the value added of an agency. Agencies just have multiple resources. Would ICE an organisation that has expertise and knowledge and benefits from economies from scale. But you need to put a lot of processes, things in place. And we talked in previous podcast that is hard to define partners. This this transition from being a solo producer to a small company and then from there to scaling it is really hard. So an outside software businesses, it’s not that. So the agency business especially is especially hard when you have a like a sales team, like lots of people. Your role as entrepreneur, you will become more like the leader or the motivational guy and or you. Hire someone for that swap, but that will all impact on the margins. So then you will need to keep figuring out how is that growth gonna happen. Otherwise, you should abandon that business model entirely and focus on becoming more professional in your vertical.
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