The 4 Stages of Business Growth ($0-$100M/Yr)

Summary

• To grow a business from zero to $1 million, focus on selling one product on one channel. Master a reliable system for acquiring customers.
• Personal problems can hinder growth in the early stages; dealing with internal issues is essential.
• Transitioning from $1 million to $10 million requires offering cross-sells and upsells to create a value ladder. Develop a backend with additional services or products your customers naturally need.
• From $10 million to $30 million involves professionalizing the business with corporate structure, HR, legal, accounting, and IT systems to manage scale and prevent dilution of the company's core mission.
• At this stage, hiring corporate individuals is necessary, despite entrepreneurs' aversion to bureaucracy, to protect the company and maintain standardized operations.
• To scale from $30 million to $100 million, foster intrapreneurs within the organization who have entrepreneurial drive but a lower appetite for risk. They should manage new product lines and initiatives.
• Properly managing expansion and new product lines relies on finding true leaders to run each division.
• Personal leadership and management skills must improve to attract and manage higher-quality employees.
• Envelop customers with all their needed services to enhance customer lifetime value (LTV) and make your offerings indispensable.
• Focus on scaling the operational infrastructure to support growth without sacrificing the entrepreneurial spirit.
• Avoid hiring entrepreneurs who tend to seek control and could leave with your clients. Instead, employ intrapreneurs who prefer the stability of a paycheck but still possess a strong drive.
• For those in the zero to $1 million range, concentrate on selling one product through one channel effectively and consistently before considering expansion.
• Remember, growth is often slow due to the challenge of finding the right people to drive different parts of the business forward.

Video

How To Take Action

I would suggest implementing a straightforward strategy to grow a business, starting with focusing on selling one product through one channel. This helps in mastering the art of customer acquisition, which is crucial for scaling from zero to $1 million. It's important to address any internal issues you may have that could hinder growth at this stage.

To transition from $1 million to $10 million, I recommend developing a value ladder. Introduce cross-sells and upsells that provide natural next steps for your customers. This way, you're adding more value and increasing the lifetime value (LTV) of each customer.

When aiming to scale from $10 million to $30 million, it's about professionalizing your business. You’ll need to set up proper corporate structures, HR, legal, accounting, and IT systems. It might feel like a big shift, but it’s necessary to manage growth effectively and maintain quality.

For those stuck at this level, introducing intrapreneurs who can manage new product lines is key. These individuals have the drive to innovate within a secure environment and can foster growth, taking your business from $30 million to $100 million.

Throughout all this, remember to continually enhance your personal leadership and management skills. Bettering yourself is essential to attracting and managing quality talent that will help propel business growth.

Lastly, make sure your offerings envelop the customer's needs, making your business indispensable to them and boosting LTV significantly. Keep scaling the operational infrastructure while avoiding the trap of diluting the entrepreneurial spirit.

At every stage, resist the lure of shiny new opportunities until you’ve solidly implemented the current phase. That's how to grow without getting overwhelmed or losing focus.

Quotes

"Zero to a million, it's a reliable system of acquiring customers"

– Alex Hormozi

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"Getting to 10 is multi-products; cross-sells and upsells"

– Alex Hormozi

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"Professionalizing the business especially from HR, legal, and accounting standpoint comes here"

– Alex Hormozi

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"What you want to do is find intrapreneurs"

– Alex Hormozi

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"If I were a perfect leader and a perfect manager I could get everyone to surge forward and be the best"

– Alex Hormozi