Your ability to SCALE is an indicator of growth potential

One of the cornerstones of a business that experiences healthy growth is its ability to scale or increase its volume without impacting the contribution margin (Contribution margin= revenue - variable costs). The ability to do more with less. If you haven’t created scalability in your business, you’ll always struggle with growth and especially with breaking through revenue ceilings. If this becomes an issue then it doesn’t matter how much marketing or sales support you may have. If you’re business isn’t set up to scale, you’ll max out on the number of customers you can serve and cap out on revenue.

Even before you launch your business, you’d have a difficult time getting an investor or bank to bank you if your revenue potential was limited.

Here are some key areas you may want to avoid as a start-up or small business:

1. Trading time for dollars.

You may have started out getting paid for your individual services but at some point you’ll want to be compensated for VALUE, not time. If you want to put a price on your time, it would then become a premium item. This could include moving into group facilitation and away form one-to-one experiences. Perhaps turn a process or instruction into an online automated activity, a book, or audio/video experience. The opportunities to transform a talent into a scalable product or service are bountiful. People will then be able to compensate you for value, not time.

2. Intellectual Property that serves a finite purpose.

The technical word here is obsolescence which is when something loses values because the world around it (tastes) have changed. Streetlamps and streetlamp lighters became obsolete when electricity was invented. The pet rock became obsolete after it’s first wave. Whatever your “it” is, make sure it has the ability to expand, grow and evolve as time goes on. Rather than a title for one book, Jack Canfield and Mark Victor Hansen created an anthology franchise of Chicken Soup books that are still breaking records. Over the years, how many variations of Windows have you had to purchase for your computer?

3. Lack of automation.

If your dream is to help as many people as possible, then you’ll want to serve your market without limitation and in a way that is most cost effective to the business. Virtually every area of your business can have some type of automation to increase efficiencies and output--- more people being served! Start with manufacturing then on to the delivery of your goods and services. Order processing, follow-up and marketing are key areas to look at as well. Also, is there any continuity with existing customers or does your relationship end after a sale? This is why even a follow up email Autoresponder system can make such a difference.

4. Lack of trained personnel.

That’s often a bottleneck in a business…especially if the CEO is wearing all the hats and hasn’t taken the time to train & delegate. Make sure there are people around you that you can offset responsibilities too. Outsource these functions initially if you’re a start-up but treat it as a priority, not a secondary thought.

5. Undefined business model.

It’s difficult to create scalability if you’re just trying make money from a variety of sources but haven’t tied it all together. What’s at the core of your business? Is it just you or is there a website or some other presence that’s independent of you?

You may reprint this article in its entirety with author's contact and bio information.

Use the Triple S formula to grow your business

I can usually tell very quickly what kind of revenue someone has and how sustaining their growth will be by using my Triple S formula:

* Systems

* Structure

* Scalability

Without it, you may feel that you own a job and work hard to stay ahead.
Without enough of the Triple S, you may not be able to break through revenue thresholds.

Want a million dollar business? Think Triple S!

We'll be discussing what it means and how you can have all this on our next Abundance Mastermind Group Call.

Tuesday, October 20th at 12pm pacific/ 3pm eastern.
You can join this call and next month's call for FR*EE when you purchase my ebook:

"Passion To Prosperity: Instant Ways To Profit From Your Skills and Talents".
http://passion2prosperitybook.com

During our call, I'll lay out key areas of your business where you want to create systems, structure and scalability to help you break through any revenue plateuas you may be experiencing.

I'll also take questions about how to integrate it in yours.
I'll help you shift your thinking about how to create that million dollar business AND you'll have specific action steps to take after the call.

Can funding too early on actually slow you down?

You may be scratching your head with this title but hear me out: if you’re just starting your business or in an early growth phase, throwing too much money into the mix may not be the best thing to do. Many people think what’s slowing them down is lack of funding but actually the opposite can be true if you recognize the gift that’s before you and shift your thinking accordingly. Here are some reasons why. If you realize any of these could be true for you, perhaps take the money out of the equation to gain new perspective.

Here are some issues that I’ve seen crop up with those who had access to unlimited funding early on:

1. The people on your team may be more interested in a paycheck than your vision.
Oprah says it best “everyone would like to ride in the limo with you but you really want people who would also ride the bus with you too.” It’s easier to see who’s in it for the money or the dream when times are lean. Surround yourself with these people early on when it’s easier to make the distinctions.


2. Rushing into production before “selling” your concept.
When funds are limited, you’re inclined to do more testing with your product or service to see if this is what your market REALLY wants. I’ve seen way too many people invest too much early on into production without properly understanding their markets only to have to go back to the drawing board over and over again. The saying “measure twice, cut once” applies here.

3. Lack of validation for your concept.
The business planning process is the best way to sketch out your core business model for others to see and improve upon and to “dry test” in the market BEFORE launching. What are your primary revenue streams, who are your customers, exactly HOW will your get your product or service in their hands and how much will this cost? Those with unlimited funds often skip the planning and testing part and get into the DOING part sooner than later which can prove costly.

4. Managing too much initial growth.
I’m all for planning and thinking big but there’s nothing wrong with taking small steady steps to achieve your goals. You want to manage growth by focusing on 1-2 core revenue streams at a time, creating systems, structure and scalability so that you can become unstoppable. Throwing funds at a situation for rapid growth does not ensure success. Creating the proper infrastructure, having a product customers really want and topping that with a great sales and marketing plan does foster success.


5. Loss of creativity and innovation.
Some of our greatest solutions are derived when we’re under pressure, have limited resources and must improvise, or have naysayers telling us it can’t be done. Has that ever happened to you? This is precisely the moment when we create that “entrepreneur’s magic” and become the “MacGyver” of our business. Conditions must be ripe for it and I’ve found that type of innovation and creativity doesn’t have as often when there are unlimited resources at our disposal.

6. Less apt to seek out guidance
I notice that people that have limited funds are more likely to actively and creatively seek out support and ask lots of questions. And there are plenty of people who will graciously and truthfully answer your questions if you should ask! I have found that if you are paying all your advisors, they are less likely to be truly forthcoming with their opinions for fear of losing their paid engagement.

So next time you think “if only I had the money” perhaps be grateful at that moment for the opportunity to really test the merits of your idea and to enroll people in your vision, not just a paycheck.

You may reprint this article in its entirety with author's contact and bio information.