Whether you’re growing to your first million in revenue, are well past that and are looking to make your business more automated so that you can profitably scale up, or have hopes of an exit in the near future, it’s imperative that you avoid the mistakes that I’ll be discussing in this post.
Doing so will help you scale with more profit, more ease, and less stress.
Curious as to what these mistakes are? Let’s dive in.
1. You’re too busy to grow
Being stuck in day-to-day tasks is a huge problem because you can’t actually grow the business. Your main job as the CEO is to think and come up with better ways to do things. You need to generate ideas to increase profits, enter new markets, and so on.
You can’t do this if you are married to your routine. You’ll be wearing blinders. And you’ll miss out on the numerous opportunities sitting right in front of you.
Does your alertness follow this curve? When are you most focused and productive?
How to fix it:
- Carve out at least 5-10 hours per week for growth
- Start your day with crystal clear intention. Always create a plan for your day with the top 3 most important things you need to accomplish that day.
- Work within the human natural alertness cycle by using your first “Power Hours” of each day on growth tasks.
- Schedule email so that you aren’t living in your inbox. Do not check email until at least 11am if at all possible.
2. You’re trying to scale too soon
Many business owners try to scale too soon. Instead, they should first focus on making the business sustainable and bake in as much profit as possible.
Leverage first, then scale.
I often see business owners reach a hump that they can’t quite get over and it’s usually because their pricing structure cannot sustain profitable growth. They know they shouldincrease prices, but fear creeps in.
Many experts may say “Just raise your rates,” but if it were that easy, everyone would have more profitable businesses.
The harsh reality is that clients might not be willing to pay you more.
Why? The answer is risk vs. reward. The risk is too high, and the reward is too low.
Clients are willing to pay much more if:
- You offer a solution they truly want
- Your client has access to funds
- You can sufficiently lower the risk for them to make it a no-brainer
How to fix it:
- Leverage first, then Scale.
- Work out that formula to be able to increase fees so you’ll have the resources to grow.
- Evaluate the kinds of problems your business can solve
- Evaluate your sweet spot by looking at what you enjoy, and evaluating unfair advantages.
- Evaluate client type that you can add the most value to
- Evaluate ways to better utilize your unfair advantage
- Only after you’ve increased value, and fees should you scale. Look for cost advantages and ways to decrease the cost of delivery (I’ll dive into that further below).
I’ve seen those who leverage first and are able to double their revenue per client, with little or no growth to their team. It’s pure profit. It works. I’ve seen it work both in my own business and for others that I have worked with.
3. It’s all about you
Everything is about your process and the steps you take, instead of your client’s pain points, and what they want.
If you want to get lost in a sea of downward spiraling mediocrity, then keep focusing your website on the “me show” and only discuss your services, tools, credentials, and so on.
Instead, you should be discussing the problems your ideal prospects want solved. Make everything about them, and the solutions they want. They want their problem solved. End of story.
How to fix it:
- Choose one painful $100k+ problem to solve, one client type, and one customized (not custom) outcome.
- Guarantee it, and jack up your fees to price based on the value of the outcome.
Duct Tape Marketing
To read more tips about avoiding the common mistakes that occur click here.