If You Want to Scale, STOP Doing This…

Summary

• My co-CEO Alex and I attended a local event in Las Vegas, where I engaged with several operational professionals who shared how my content has been assisting them in scaling their businesses.
• Scaling a business from seven to eight figures is a common challenge, and I identified five main areas where businesses struggle based on my conversations and observing patterns in companies we work with.
• The number one mistake is incurring too much management debt, which includes not replacing ill-fitting team members, avoiding difficult conversations, and postponing necessary changes.
• It can be tough to make personnel changes, even if you're a strong leader, but holding on for too long can harm the business.
• You should replace team members when you've given them significant coaching without improvement; however, consider that your own leadership skills might need development too.
• CEO stepping out too soon is the second mistake, often when the business reaches between $2 million and $5 million in revenue.
• A CEO prematurely distancing from daily operations can cause a dilution of the company culture and values.
• It's important as a CEO to stay involved in weekly leadership and monthly company-wide meetings, monthly check-ins with leaders and key team players, and areas you excel in.
• The third mistake is fearing reinvestment in talent, as hiring ahead of growth is crucial, but many CEOs opt for cheaper, less qualified candidates within their networks due to financial concerns or the intimidation of experienced talent.
• Not engaging in "boring work" is the fourth mistake, lacking the discipline to repeat successful actions and improve incrementally to scale the business.
• The fifth mistake is letting ego interfere with business decisions, attempting to emulate people who are far more advanced rather than focusing on intermediate growth steps.
• To avoid these mistakes, businesses should manage their team effectively, maintain CEO involvement, invest in qualified talent, commit to necessary repetitive work, and keep ego in check to achieve growth from seven to eight figures successfully.
• Remember, if you are content with current success levels, your drive to scale further might be diminished; it's important to constantly challenge yourself and maintain ambition beyond current achievements.

Video

How To Take Action

I would suggest starting with managing the team effectively. Avoid piling up management debt by addressing ill-fitting team members quickly. If someone's not improving after significant coaching, it might be time to replace them. But, also check if you need to improve your leadership skills.

Next, maintain your involvement as a CEO. Don't step back too early. Stay involved with leadership meetings, company-wide meetings, and check-ins with leaders and key team players. Don't lose touch with areas where you excel. This helps preserve your company's culture and values.

Investing more in qualified talent is also key. Don't hire cheaper, less experienced people just to save money. This could hurt your business in the long run.

Commit to the "boring work". Repetition and discipline are needed to grow. Keep doing what works and improve little by little.

Lastly, keep your ego in check. Don't try to copy what businesses much larger than yours are doing. Focus instead on the next immediate growth steps for your business.

Remember, if you're comfortable with current success levels, you might not push to scale further. Challenge yourself and maintain your ambition to grow beyond your current achievements.

Quotes

"What I've noticed a lot of people do once they start to gain some success and they're on their way to eight figures is they start emulating people who are really far ahead of them"

– Leila Hormozi

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"It is better to hire ahead conservatively so that you can grow higher so that you can build the infrastructure to accommodate new clients than it is to not hire and then you know have clients come in have a terrible experience you ruin your reputation you can't get your reputation back"

– Leila Hormozi

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"It's probably gonna break what you're making"

– Leila Hormozi

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"There's nothing wrong with that it's just very difficult to grow a business with that objective in mind"

– Leila Hormozi

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"You have to find a way to be hungrier than that"

– Leila Hormozi