An entrepreneur started a management consulting company. The first several years were very challenging in finding potential clients and building relationships with them,in developing the services that the company would sell to clients,and just "getting known" as a management consulting company. These years required considerable money,but there were few sales. After several years,the company became known and now has many clients and large sales,all the while,expenses are lower than in the first years. This represents the idea of
A) a joint venture.
B) global expansion.
C) an external strategy.
D) a merger.
E) a scalable business model.

Question

Quizplus · Accepted Answer

The scenario describes the process of developing a scalable business model. The initial investment and effort required to establish the company and its services eventually yielded long-term success with lower expenses and increased sales. This is a common pattern for businesses with a scalable model, as they can leverage investment in infrastructure and development to generate growing revenue streams.

An Entrepreneur Started a Management Consulting Company