Rarely does a business grow smoothly throughout its lifetime. Most businesses will encounter a series of what I call “revenue ceilings”.
In other words, they’ll grow to a certain point and then plateau. It’s as if there’s a ceiling blocking the business from growing any further beyond that point.
These “revenue ceilings” happen because the skills you need to take a business to 6 figures will not take it to 7 figures. And the skills you need to take a business to 7 figures will not take it to 8 figures.
How do you evolve your skills to scale your business through its next “revenue ceiling”? I explain in this video.
There are four roles that you’ll play as an entrepreneur, over the lifetime of your business. They are:
Each role faces a different set of challenges and calls for a different set of skills.
SCALING YOUR BUSINESS FROM 5 TO 6 FIGURES
While your business is doing 5 figures, you’re going to spend most of your time as the employee/technician. If you owned a lawn mowing business, this would mean you’re the one behind the lawn mower. The employee/technician is in the trenches, involved in the operations of the business.
As an employee/technician there’s naturally going to be a ceiling to how much money you can make. There’s only one of you, and only so many hours in the day. If the business depends on you being present, then you’re going to struggle to reach 6 figures.
In order to break through this first “revenue ceiling”, you need to shift your skills and your time towards being a manager/co-ordinator. This means you manage a team of staff who do the operational work. When you have multiple people doing the work, you can multiply your income.
SCALING YOUR BUSINESS TO 7 AND 8 FIGURES
Still, being the manager of a team is only going to get you so far. If you want to scale your business to 7 figures in revenue, the work load is naturally going to increase to handle the extra volume. You’re going to need full time finance staff to manage the accounts. You’re going to need people to negotiate with suppliers, and customer service staff to handle all the extra customers and their needs.
Even as a manager, this is too much for one person to handle. You need to divide your company into divisions or departments, each with a different manager. As for you, the entrepreneur, your skill set needs to shift away from directly managing staff and towards managing the company’s long term vision and culture and hiring the right managers.
Finally, to scale to 8 figures, it’s time to remove yourself fully from the day to day operations and think of yourself as an investor. You simply own the company while other people manage it. Now, your focus turns to diversifying your money into other companies and asset classes.
The MOBE Titanium Mastermind goes into more depth on this topic. Members learn how to evolve their skill set within their businesses and scale through successive revenue ceilings. To learn more about the Titanium Mastermind, click HERE.