Being stuck at the $1.5 million turnover is common. Have you been hovering around this mark for a while now?
If so, the good news is, you can break through and reach a $10 million turnover. To do this, you need improved systems, processes, people, culture and practices.
But the first question you need to ask is, do you want to crack $1.5 million and make $10 million your next pain point?
Typically, at the $1.5 million mark, you’re outstanding at your profession. It’s taken you many years to reach that level of expertise, whether you’re a lawyer, accountant, tradesperson or other service provider. But how much training have you had in becoming a great business owner?
Most business owners don’t get nearly enough, or any, training in how to run a business.
Do you know what your three-year plan is? Do you know what your 12-month plan is? Do you know what your KPIs are?
It’s OK if you don’t. This is where professional advice comes in.
Do you want to do a great job – or have a good business?
Think about it. As a business owner, should you be the person who does all the work, or should you be the person who delegates the work?
You can’t run a successful business by fighting fires. Being busy with “being busy” gets you nowhere. You need to have the time to plan, strategise, visualise and gain clarity on the following questions:
- Have you defined your profit?
- Have you defined your performance?
- What’s your mindset? How does this help or hinder your business?
- If you delegate work, who will you delegate it to? How?
- How will you upscale your people?
- How will you hold them to account?
- What is your end goal?
- Do you have a saleable asset?
The next thing you need to think about is an exit strategy.
Why you need an exit strategy
Businesses at the $1.5 million mark often have amazing but exhausted business owners. They’re tired of their business but have no exit strategy or succession plan. Is that you?
One client I recently worked with was an amazing business owner who had run her business for 30 years. But she could never go on holiday. She was her business, and her team members were like her family. But she had an employee mindset.
Another business owner I recently worked with was also being held back by his mindset. He had been “busy being busy” for so many years, he’d never taken the time to stop, think and reflect on where he wanted his business to go and whether he had a saleable asset.
As a business owner, you want to do yourself out of a job. You should always be asking who you can delegate to and hold to account.
Do you have a succession plan for your business? Or do your skillset and mindset hold your business back?
What’s your market?
At the $1.5 million mark, you need to be crystal clear on your market. You also need clarity on your systems and processes so you can move beyond $1.5 million. Ask yourself:
- Who is your market?
- What is your micro-niche?
- What is the market channel?
- What is your sales funnel?
- What is your sales process? Is it documented? Is it consistent?
- Is your product implemented or delivered consistently?
- Do you ask for referrals and recommendations?
- Do you have a client relationship management system?
- Have you recruited somebody to manage the things you’re not good at?
- Do you have an operations manager, sales manager or service manager?
- Do you have regular meetings?
- Do you conduct weekly or quarterly reviews?
- Do you have an operational plan?
- Do you have the right capital structure to support your growth through to $10 million?
- Do you have the right organisational capability?
- Have you got the right structure to take you to the next level?
- Do you have a governance board or an advisory board?
- Where do you get your advice from?
A growing business needs the right structure and capability from a financial, operational and people perspective. Your systems must be documented and streamlined. You also need to recruit people who are better and more competent than you. Remember, your job is to do yourself out of a job.
Moving from a $1.5 million to $10 million turnover is like learning to drive again. It’s been many years since you’ve learned how to drive; everything comes automatically. You intuitively go from first to second, to third, to fourth, to fifth. Well, you’re now driving a new car. The car is 10 times the size of your old one! And it’s 10 times more complex. However, it shouldn’t be any more complex.
At the $10 million level, you should have the same systems and processes as at the $1.5 million level, but they need to be bigger, with more people and profit.
Recruiting an advisor is essential. Somebody who’s been there, done that, will make sure you learn how to drive again and stay on track. Email me at [email protected].