Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
What Is 'Multiplication'?
Multiplication is duplication for an entire process or system.
There's an upper limit on what a single business can produce. By creating identical business systems based on a proven model, a business can deliver value to more customers.
Multiplication is what separates small businesses from huge businesses.
Josh Kaufman Explains 'Multiplication'
McDonald's knows how to Duplicate Big Macs. Starbuck's knows how to duplicate triple soy vanilla lattes.
Here's what McDonald's and Starbucks have in common: both businesses can duplicate entire stores, which is why there are thousands of each all over the world.
Multiplication is duplication for an entire process or system.
McDonald's began as a single restaurant in California; Starbucks began as a single coffee shop in Seattle. By learning to duplicate the entire business system that is a McDonalds or Starbucks store, each company opened new possibilities for growth.
Wal-Mart did the same thing. Starting with a single store in Fayetteville, Arkansas, Wal-Mart multiplied at an astounding rate, spreading rapidly across the Midwest, then nationally, then globally.
Wal-Mart's success lies in multiplying two interconnected Systems: stores and distribution centers. Distribution centers multiply the ability to receive inventory from suppliers and deliver it to stores. Stores replicate a proven system of receiving, displaying, and selling that inventory to paying customers.
Multiplication is what separates small businesses from huge businesses.
There's an upper bound on what a single business system can produce. By creating more identical business systems based on a proven model, multiplication can expand a business's ability to deliver value to more customers.
That's the major benefit of franchising: instead of re-inventing a business model, opening a franchise helps multiply a model that already works. The easier it is to multiply your business system, the more value you can ultimately deliver.
Questions About 'Multiplication'
- Can your business multiply as well as duplicate?
- How could you take advantage of multiplication to serve more customers?
"All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work."
Calvin Coolidge, thirtieth president of the United States
Value Delivery
https://personalmba.com/multiplication/
Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
About Josh Kaufman
Josh Kaufman is an acclaimed business, learning, and skill acquisition expert. He is the author of two international bestsellers: The Personal MBA and The First 20 Hours. Josh's research and writing have helped millions of people worldwide learn the fundamentals of modern business.
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