Strategy
What’s Holding my Businesses Back From 8-figure Growth?
A million dollars used to be a sh#*-load of money, now with the internet opening global markets and more money available than ever before, it’s not millionaires that hold the power, it’s billionaires.
The figure that most business owners are chasing is 8 digits long. 10 million to 100 million. If you have crossed the million dollar mark in your business there is only one thing holding you from achieving 8 figures. Any clues as to what that might be?
Here’s a quick quiz.
The biggest thing holding businesses back from achieving $10 million more is?
- Not having a business plan
- Not doing market research
- Not hiring the right staff
- Not having a big business mindset
The answer is D. It’s a big trap and it happens all too often. Business owners get caught up in the way things were when the business was small. That small business is over and gone, it’s time to move on.
This blog is all about helping you do that by showing you the five stages of business growth. Read through to identify where you are, and how to get to the next stage.
Contents
Why do we think small business?
So why is it that we continue to think small when we pass that million mark?
There is no need to feel offended if you have found yourself in the position of trying to run a big business with a small business mindset. It actually makes perfect sense that you would do this. The only way to not do this is to get a coach to teach you to step out of that comfort zone and start a new approach.
Here’s what you have reinforcing that small business thinking:
Neurological connections: our brains are hardwired to remember patterns of success and repeat those patterns throughout our lives. In order for you to reach 6 and 7 figures with your business you must have had some excellent structures and pathways put down. These strategies have been hardcoded and you’ll be automatically playing them out.
Ego: Ah ego. You know you are great, just look at your bank account! You won’t even be considering a different way to run your business. Pride can blind us to flaws and new learning opportunities.
Fear: Fear is incredible. Even the smallest doubt or worry can stop progress in its tracks. You already have a safe, practised and successful way of doing things, why would you risk it all and change things around just to make a few extra dollars? The reward (even if it’s 5 million dollars) won’t be worth the perceived risk of stepping out of your comfort zone and trying something new.
Thinking like a small business makes total sense but you are going to be limiting what you can achieve by staying in this mindset. To get across the threshold and achieve the next level, you’re going to have to break through your practised neurological pathways, your ego and your fear.
It is absolutely possible to do this. What you need to do is identify the five stages of business growth to determine where you currently are.
What are the Five Stages of Business Growth?
There are five distinct growth phases every business will go through. In order to get to 8 figures you’ll need to master the first three stages; Existence, Survival, and Scale.
The other two, Take-off and Resource Maturity will happen on the other side of the $10,000,000 mark, but I’ve listed them below for you briefly so you get a picture of what comes next in the five stages of Business Growth.
Stage One: Existence
This is your tiny dot of an idea. You start asking, ‘Could this actually be a great business?’ In this stage you are creating and honing a product that meets a need and considering its place on the market.
Don’t expect to be bringing in any money yet – although in this stage earning up to $100,000 isn’t unheard of. Money is not the focus here (that comes next), right now you haven’t put down roots but that lack of traction also gives you a lot of flexibility to test and change your ideas before you have committed to something solid.
What’s new to learn?
At this stage EVERYTHING is new to learn! But most especially feedback. Take in as much feedback as possible – go in search of even more feedback through experiments, observations and interviewing people.
What can you keep from this stage going forward?
Checking in to make sure you have the perfect fit between what you offer and your market. The effort you go to to find your pace in the market needs to continue as you get bigger, especially as you approach the 8-figure mark. Your market’s needs are constantly changing and evolving, you need to keep doing the work, getting the feedback and adjusting to fit.
Stage Two: Survival
Now that your idea is perfected and you have a market that fits it’s time to focus on making money consistently.
You’ll be working hard for your revenue of around $100,000 – $1,000,000 and it might take a few years to get there. With most startups it’s just you to begin with – maybe a partner in crime – but either way you’ll be spreading your time, money and resources extra thin to make it all come together.
As it does come together the fun begins. You hire a small, tight-knit team, you get yourself a consumer base, things start to feel easier and you establish yourself as a brand, not an individual.
This is the longest of the five stages for most businesses which can be exhausting if you are putting in 60+ hour weeks (I don’t recommend that you do – it’s not productive in the long run and you can kill your passion). Luckily the rewards you earn in this stage feed your excitement and motivate you to keep going.
As your income grows it’s important to reinvest it in your business (so don’t rush out and buy a new car). You need to be searching for skilled staff and building your work team, spending money on product improvements and any technology that makes your business run seamlessly.
What’s new to learn?
Finding ways to run your business sustainably. Short-term, yes you can do it all but not for long. You are going to need to find systems and build resources to take the load off your plate. As your business grows there will be even more to do than there is now, so get the systems in place as early as you can so the workload is manageable and the right people are on the right tasks.
What can you keep from this stage going forward?
Overhauling systems and striving for system perfection. This is the stage where you need to start working out your business systems and structures. Working out a detailed business plan will help assign the right staff and technologies that make everything tick. As you move towards 8 figures you need to continue to overhaul these systems and track where you can improve and revisit to get better results.
Stage Three: Success
You’ve made it! Your business is maturing and thriving, now it’s time to scale. Your focus here is to keep the company stable and profitable.
This is where you are looking to be hitting those 7 and 8-figure numbers in your business with revenue anywhere from $1,000,000 to $10,000,000.
As mentioned in the opening, the trap here is that your business has now surpassed your natural talent – that means you either need to get yourself to the next skill level fast (through learning, doing, growing) or hand over the reins to managers and executives that are significantly more skilled than you are – probably a mix of both is the most realistic approach.
Getting yourself a business coach or mentor is the best way to identify your skill gaps and launch yourself to the next level through personal and business development.
You need to be thinking and acting big business in every way possible. You’ll have production systems, marketing plans and accounting practices set up and running and you’ll be paying your high-quality staff high-quality wages and incentives.
You’ll also be out of the office – a lot. Use that time to strengthen your business networks, expand your skill sets and go on holiday.
What’s new to learn?
Most businesses experience rapid jolts of growth. The trick here is to find some stability and get profits moving in manageable ways. This way you have solid ground under you if there is any kind of trouble – internally or externally. If there are no dramas you can just keep cruising along here but I can’t recall any time in history where there has been some kind of trouble eventually.
What can you keep from this stage going forward?
Stepping back. You are no longer a big part of your business. It should be able to run smoothly without you looking over everyone’s shoulders. The bigger you get the more steps back you need to be taking away from the everyday aspects of the company.
Stage Four: Take-off
Expansion isn’t compulsory – none of these stages are, you can park your business at any stage and just maintain your current level of success. If you can leverage and streamline your operating strategies, sales and marketing processes you are naturally going to be heading towards bigger figures, mergers or buying up other companies. Expansion can also include opening up new markets and branching out to new products.
Stage Five: Resource Maturity
When you are making big money – and at this point you really are – you need to be managing your income wisely through proper investments, acquisitions and resources.
Rapid growth also means your systems need another check and cleanse as you look for longevity.
How do I get to an 8-figure business?
If you are striving to get to the success stage of your business and need help breaking through your mindset, ego or fear, I’m here to help. I’ve built a team of coaches who have experience in business and have personally worked through the stages of growth to see incredible success. They know what it takes and what you have been through so far.
Earning 50, 60 or 90 million in your business is possible. Even better you get the lifestyle you’ve been craving where you can holiday or be at home while the work gets done for you. You just need to elevate to be at a level that is ready to go the distance.
Join our free Facebook group to surround yourself with business owners all working on making the jump to eight figures and beyond…
What’s Holding my Businesses Back From 8-figure Growth? – FAQs
Q: At what stage of growth is a business profitable?
A: Profitability is not necessarily tied to a specific stage of growth. It is possible for a business to be profitable from the early stages, but profitability usually comes after a business has established its customer base, optimised its operations, and reduced its expenses.
Q: What keeps a business growing?
A: A number of factors contribute to a business’s growth, including an innovative product or service, effective marketing, excellent customer service, efficient operations, strong leadership, a talented team, and a clear vision for the future.
Q: Why is my business not growing?
A: There are many possible reasons why a business may not be growing, including a lack of market demand, poor marketing, ineffective management, insufficient capital, inadequate infrastructure, and failure to adapt to changing market conditions.
Q: What makes a business fail?
A: Businesses can fail for a variety of reasons, such as insufficient capital, poor management, a flawed business model, ineffective marketing, lack of innovation, inability to adapt to changing market conditions, and intense competition.
Q: What makes a company more successful?
A: Companies that are successful tend to have several things in common, such as a strong leadership team, a talented and dedicated workforce, a clear and compelling vision, a culture of innovation, effective marketing, efficient operations, and a willingness to adapt to changing market conditions.
Q: How do you keep your business afloat?
A: To keep your business afloat, you need to ensure that you have a steady stream of revenue, manage your expenses carefully, maintain strong relationships with your customers, stay ahead of your competition, and be prepared to adapt to changes in the market.
Q: What to do if your business is struggling?
A: If your business is struggling, there are several steps you can take to try to turn things around, such as reducing expenses, increasing revenue, improving your marketing, seeking new partnerships or collaborations, seeking outside funding, and seeking the advice of experienced business professionals. It’s important to identify the root causes of the problem and take targeted actions to address them.