A 4-part plan to get your business to $5M in revenue
Since 2001 I’ve built (and sold) companies in a variety of industries including software, real estate, online education, consulting and professional services.
After growing my first few companies, I realized there are really just 4 things we need to get right as founders to build our businesses to $5M in revenue.
And in this post, I wanted to share them with you.
Here they are:
1. Understand the PAIN in your market and show them your “pain killer”
You’ve probably heard this before, but it bears repeating — the best productsdon’t win, the best marketing does.
So how can you market better than your competitors?
Well, you need to start by “finding the pain” in your market. What is the single biggest pain point they are experiencing right now in their business or life?
Once you understand that pain in excruciating detail, you need to “regurgitate” it back to them in a way that’s clearer than they can describe on their own.
You then need to talk about your “pain killer” (the product/service you sell) and how it will eliminate their pain quickly.
2. Build a predictable, scalable customer acquisition “machine”
You can have the most amazing product/service in the world, but if you can’t reliably capture leads and turn them in to paying customers, then what’s the point?
Every company that’s grown to $5M in sales and beyond has figured out their own version of what I call a customer acquisition “machine”.
And the machine is different for every business, depending on what you sell, your price point, etc.
– For an e-commerce business it might be Facebook Ad -> Online Store -> Purchase.
– For a restaurant it might be Google AdWords -> Online Reservation -> Purchase.
– For a professional services firm it might be Facebook Ad -> Webinar -> Lead -> Call -> Client
At the end of the day the point is the same — you need to “architect” a constant flow of leads and customers to your business that just works. Day in, day out.
3. Use leverage to get yourself out of the day-to-day of your business
I don’t know about you, but I’m not a fan of working 14 hours a day, 7 days a week.
Now don’t get me wrong, I LOVE working, but I also love seeing my family, going on holidays and just living life in general.
I don’t “live to work”. I work to live.
The trick is to understand the leverage points in your business and how you can use them to get more done while you spend less time in the office.
The most common way to gain leverage in any business is to start slowly hiring great people who can take some of the work off your shoulders.
As they prove themselves and you feel confident in their abilities — and your sales start growing much faster — you continue to hire more and more people.
Within a few short months, you’ve delegated what I call your “low value” tasks to your team. This gives you: 1) a lot more free time and 2) time to work on the business instead of in it.
When you work on your business, you get clarity. You see new opportunities for growth. You attend conferences, events and roundtables and meet smart founders who help you come up with even better ideas.
And your business starts to grow faster while the time you spend in your business continues to drop, month on month.
4. Surround yourself with people who have “seen the movie” before
Back in 2006 I was trying to grow one of my companies to $1M in sales. But it just wasn’t happening, no matter what I did.
Then I got my first business coach. That year we did $2M in sales and the following year we did over $5M.
So I doubled down on what was working and went to the best — I hired 2 “master coaches” from personal development legend Tony Robbins’ company.
Fast forward a few short years and not only did my business top $20M in sales, but I was transformed as a founder. As a person. And as a leader.
It was incredible.
Now whenever I want to accelerate my progress in ANYTHING (especially business), I always remind myself of this quote:
2X Thinking Is “What Can I Do?”. 10X Thinking Is “Who Can Help Me?”
|About Mitchell Harper
Mitch is a 7x company founder, advisor and investor. He is best known as the co-founder of BigCommerce. His companies have generated over $200,000,000 in total revenue and he is currently building an online education company and a SaaS company.