Want to grow your product fast without burning money? Here is a simple framework for that. I just call it SIM (Scalable Input Module) framework.
1. A SIM is an input unit that you can deploy to get to your output goals. For example, a sales representative (SR) is a SIM who gets you the output which is Sales or Revenue.
2. A SIM should be input and not an output. So a salesperson is a SIM but deals closed is not. A distributer is a SIM but the distribution GMV is not.
3. A SIM should be completely within your circle of control. Again an SR is a SIM as hiring one is within your circle of control. Getting featured in the App Store is not as that is not under your control.
4. A SIM should scale proportionately. If one SR gets 10K sales daily, 10 salespeople can get ~80-100K daily. If $1 spend in Facebook ads gets 10K daily, $10 spend in FB ads will not get you 80-100K (try it and see). So FB ad is not a SIM while an SR, a Lenskart store or a Swiggy hub is.
5. A SIM is replaceable. If one sales rep doesn’t work, you can replace them with another. If FB ads don’t work or if FB blocks you, you can’t replace FB.
6. A SIM should have revenue directly attributable to it. So an SR is a SIM but an Engineer is not.
7. Sometimes, a SIM can be a combination of input units. For example, one SIM could be a team of a market research person, a lead generation person, a salesperson and a closer.
8. It’s a good practice to combine both supply and demand for a SIM wherever applicable. For example, one sourcing associate and one sales rep together can constitute a SIM.
9. A SIM should be Contribution Margin positive. For example, a sales rep should generate enough margin that could pay their salary before they can be considered a SIM. A store, distributor, franchisee or a hub should be profitable for it to be a SIM.
If you can create a SIM for your product, then it’s just a matter of cloning more SIMs to grow your product. If you don’t have a SIM for your product, then there is a good chance that your growth might not be under your control. So don’t start scaling until you have identified a SIM.