How to Scale a Business: 7 Steps Beyond 7 Figures
In today’s business world, it’s possible that grit and determination can help you achieve the coveted 7-figure mark in revenue. But how to scale a business beyond this level becomes increasingly difficult without strategies and processes.
So the question then becomes, where must you make changes to create increasing and predictable profits within your business?
In many cases, when scaling 7- and 8-figure businesses, we see 3 primary issues:
- The company lacks predictability in leads or sales.
- The company is too dependent on the owner or a few key employees.
- The company is overly reliant on word-of-mouth and referrals.
Adopting scalable sales and marketing strategies goes a long way in fixing these problems. What’s unique about “scalable” strategies is that you can massively increase the output without a substantial increase in resources.
Keep in mind, though, that you can quickly derail these efforts when you compete on price or you often lose business to inferior competitors.
A big key to scaling beyond 7 figures is not focusing on growth alone. Because companies that grow too fast and aren’t prepared don’t last.
Scale Your Business with These 7 Steps
1. Establish a Unique Advantage Point
Besides defining your business, your Unique Advantage Point highlights the most compelling reasons customers rave about you. What distinguishing advantage makes your company more appealing than your competitors?
Avoid relying on routine responses about a better product or strong customer service. These items are rarely compelling enough as a differentiator.
When we began working with a video marketing agency that sought to capture more market share, their target audience was too generic. Consumers are discerning and seek out specialists who are more likely to understand their problems and solutions.
After reviewing the agency’s best clients, the CEO decided to specialize in video marketing for attorneys. In doing so, he attracted more leads, increased prices and achieved 150% growth within 12 months, quickly establishing the agency as a market leader.
2. Multiply Momentum with Optimisation
Optimisation allows you to get more from what you’re doing without needing additional resources. So what can you do more of that’s working? Or, how can you get more value from your leads?
Questions such as these help determine gaps between what’s possible and what’s already happening in your business. With optimisation, you can fill these gaps to find profits in overlooked places.
3. Create Lead generation with Inbound and Outbound Marketing
Blending both outreach types helps produce predictable revenue. Inbound marketing is more passive you distribute content as bait to lure in potential prospects. With outbound marketing, you initiate communication by reaching out to a targeted list of prospects or possible partners.
Remember, only about 3% of a market is ready to buy right now, while 6-7% are open to the idea. This leaves 90% of a potential audience that needs additional communication or information over time before you can convert them.
4. Maximize Sales Conversions
This is a way to increase revenue and lower customer acquisition costs. But it’s often overlooked because so many business owners believe they need more leads.
A lack of leads is a sign that a business is slowly taking on water. And rather than fix the holes, they want someone to provide buckets to bail them out. Not growing fast enough is never a lead-generation issue, it’s a conversion problem.
5. Boost Lifetime Customer Value
Now, before you can boost lifetime customer value, you must know how much a customer is worth to your business. Without this knowledge, you don’t know what you can invest to acquire a customer.
This being said, many entrepreneurs are so focused on bringing in new customers that they ignore opportunities to drive multiple sales through upsells, down-sells, and cross-sells all of which increase your customers lifetime value.
6. Develop Rapid Referrals
You need a program that inspires groups of raving fans to sell your product or service for you. Without one, you’re stuck relying on hope and luck for referrals.
People want to feel special, valued, and appreciated. So, whatever system you set up, work in ways to share rewards for referrals.
7. Profit with Triple-Win Partnerships
With this business-to-business play, you create relationships with companies that already do business with your ideal customers. The triple win happens when you receive a referral. You get a new client. The company you partner with gets a small commission. The referred person gets a preferred benefit, bonus, or discount that isn’t available elsewhere.