People are often the most obvious form of supply.
Employees > Contractors > Partners > Vendors > Specialists > Managers
Many owner-operated businesses begin with a single person doing everything. As demand increases, additional people become necessary. But who?
The wrong hire can create as many problems as it solves. The right hire can transform a business.
JH Strategic Partners
The Supply Side of Business
Before a business can grow, it must first possess the capacity to grow.
The 4 Supply Pools
Every Business Relies on Some Combination of Four Resource Pools.
1. People
2. Equipment Assets
3. Capital
4. Affiliate Supply Matrix
The strategy is to tap into them in a way that ensures you never come up short while leaning towards the less expensive options.
The Supply Pool
The goal of supply is to meet demand. Supply is expensive to have on hand without demand. The difficulty with business is that there needs to be enough supply to handle peak times without so much that profit margins bleed out.
1. PEOPLE
2. EQUIPMENT & ASSETS
Many businesses rely on physical resources:
Vehicles > Tools > Computers > Office space > Storage > Furniture > Specialized equipment
Just about anything can be considered an asset including the relationships you develop with clients, other drivers, and marketing agencies. Even I can be an asset to your business.
Equipment assets aren't just the vehicles you drive. They are also communications devices, software, and other tools you need to operate your business.
Vehicles > Tools > Computers > Office space > Storage > Furniture > Specialized equipment
Just about anything can be considered an asset including the relationships you develop with clients, other drivers, and marketing agencies. Even I can be an asset to your business.
Equipment assets aren't just the vehicles you drive. They are also communications devices, software, and other tools you need to operate your business.
3. CAPITAL
You may be able to get access to money.
Cash flow > Credit > Equipment financing > Vehicle leasing > Investor relationships > Banking relationships > Strategic reinvestment.
But capital becomes a resource when it is quickly and easily accessible.
My core capital strategy was to live lean, and set aside thousands per month into reserve. By the time I hit $500,000/yr, I was putting close to $6,500 per month into a rainy day fund for new vehicles, annual insurance, or to protect me against another COVID -type lockdown.
Cash flow > Credit > Equipment financing > Vehicle leasing > Investor relationships > Banking relationships > Strategic reinvestment.
But capital becomes a resource when it is quickly and easily accessible.
My core capital strategy was to live lean, and set aside thousands per month into reserve. By the time I hit $500,000/yr, I was putting close to $6,500 per month into a rainy day fund for new vehicles, annual insurance, or to protect me against another COVID -type lockdown.
4. AFFILIATE SUPPLY MATRIX
Your fleet doesn't define your capacity. Your network does.
Affiliate partners > Specialty vehicles > Out-of-market operators > Overflow capacity > Trusted relationships
Your customers will always be able to travel beyond your service area. So the strongest companies aren't strong because they own every vehicle or serve every market themselves. They are strong through a trusted supply matrix that allows them to confidently say "yes" to opportunities far beyond their own fleet.
How much of what you do locally can you also do in other cities?
Vehicle Types: Sedan, SUV, Sprinter, Stretch, Shuttle, Party bus, Charter bus
Vehicle quantities: 6 SUVs simultaneously, 4 Sprinters overlapping, 5 buses on the same job
Service Location: Your market + other markets your customers travel to
Affiliate partners > Specialty vehicles > Out-of-market operators > Overflow capacity > Trusted relationships
Your customers will always be able to travel beyond your service area. So the strongest companies aren't strong because they own every vehicle or serve every market themselves. They are strong through a trusted supply matrix that allows them to confidently say "yes" to opportunities far beyond their own fleet.
How much of what you do locally can you also do in other cities?
Vehicle Types: Sedan, SUV, Sprinter, Stretch, Shuttle, Party bus, Charter bus
Vehicle quantities: 6 SUVs simultaneously, 4 Sprinters overlapping, 5 buses on the same job
Service Location: Your market + other markets your customers travel to
Ready to Get Started?
Managing supply is important. But it's only 1/4 of business acceleration.
1. Demand creates opportunities
2. Supply fulfills them
3. Processing ensures capacity and operational efficiency
4. Economics turns all of it into profits
When all four work together, growth becomes magnetic, not something you have to strive for.
Focus On What You Do Best
You don't need to become a supply-side expert. That's my job. Every hour spent increasing supply is an hour you're not spending in your zone of expertise.
Let me talk you through it, or build it for you.