Eric Siu explains how to scale a services business from linear labor to systems-based operations. By building intake, strategy, production, QA, and feedback loops, you compound improvements, increase margins, and create leverage that compounds over time.
Everyone's talking about the $1 trillion services as a software company. Here's how you actually build it. So if you look at the old model, which is selling labor, it's more clients, which means more people, which means that you scale linearly. So every single client you add over time, you're going to have to add people. And that doesn't scale very well, which means, by the way, you're going to have more meetings. There's more QA as well. And you have margin pressure, right? So you can't have the best gross margins over time. Now, when you flip the model and you say, okay, people still need help. Well, what if you change the leverage model to focusing on building systems? So you have an intake system, a strategy system, a production system, a QA system, reporting and feedback loop. These are all systems, loops, workflows, whatever you want to call them. These can compound over time because the more information you feed it over time, the more connectors you have, the smarter it gets over time, the more leverage you have, and then your margins get a lot better. And that's how you ultimately build a $1 trillion service as software company. If you want more like this on AI business and marketing, just hit follow.
