In today’s business world, it’s possible that courage and determination can help you achieve the coveted 7-figure turnover. But how to scale a business beyond that level becomes increasingly difficult without strategies and processes.
So the question then becomes, where do you need to make changes to create growing and predictable profits within your business?
In many cases, when scaling 7 and 8 figure businesses, we see 3 main issues:
- The company lacks predictability in leads or sales.
- The business is too dependent on the owner or a few key employees.
- The business is too dependent on word of mouth and referrals.
Adopting scalable sales and marketing strategies goes a long way in addressing these issues. What’s unique about “scalable” strategies is that you can massively increase production without dramatically increasing resources.
Keep in mind, however, that you can quickly derail these efforts when you’re competing on price or often losing business to inferior competitors.
A big key to scaling beyond 7 figures is not to focus only on growth. Because businesses that grow too fast and aren’t prepared don’t last.
Grow your business with these 7 steps
A Kauffman Foundation study found that 66% of companies listed on the Inc. 5000 list of fastest growing companies sold at a disadvantage, went out of business, or decreased in size within 5-8 years.
Because the right people and scalable processes aren’t in place to handle rapid growth.
Moreover, greater growth requires better leadership. As a business owner or founder, your leadership skills need to grow faster than your business grows.
This is often why many top CEOs hire a seasoned business coach who can help you craft a personalized plan and provide you with a fresh perspective to increase your chances of success.
As CEO of Predictable profits, one of my responsibilities is to help guide the growth of companies looking to exceed 7 figures. We’ve helped over a dozen companies earn their place among America’s Fastest Growing Companies (including one that grew from $1M to $40M+ in 6 years of working together).
Below are the 7 steps our clients follow to create scalable and predictable growth.
1. Establish a unique point of advantage
In addition to defining your business, your UAP highlights the most compelling reasons customers rave about you. What distinctive advantage makes your company more attractive than your competitors?
Avoid relying on routine answers about a better product or solid customer service. These elements are rarely convincing enough to differentiate themselves.
When we started working with a video marketing agency that was looking to capture more market share, their target audience was too generic. Consumers are demanding and seek specialists who are more likely to understand their problems and solutions.
After reviewing the agency’s top clients, the CEO decided to specialize in video marketing for lawyers. In doing so, he attracted more leads, increased prices, and achieved 150% growth in 12 months, quickly making the agency a market leader.
2. Multiply momentum with optimization
Optimization allows you to get more out of what you do without needing additional resources. So what more can you do that works? Or how can you get more value from your leads?
Questions like these help determine the gaps between what is possible and what is already happening in your business. With optimization, you can close these gaps to find profit in overlooked places.
For example, we worked with an executive coaching company that was experiencing stalled growth and needed to take it to the next level. We discovered that they were receiving an average of 1,584 leads per day, but their sales conversion rate was low.
Revenue per lead was initially $7.20. After suggesting a few tweaks to their email campaign and landing pages, we helped increase revenue per lead to $46.09 in 17 months, a 540.13% increase without any ad spend additional.
Read more: Use customer insights to drive growth and build loyalty
3. Create lead generation with inbound and outbound marketing
The combination of both types of outreach helps generate predictable revenue. Inbound marketing is more passive – you distribute content as bait to attract potential leads. With outbound marketing, you initiate communication by reaching out to a targeted list of prospects or potential partners.
Remember, only about 3% of a market are ready to buy now, while 6-7% are open to the idea. That leaves 90% of a potential audience needing additional communication or information over time before they can convert.
4. Maximize sales conversions
It’s a way to increase revenue and reduce customer acquisition costs. But it’s often overlooked because many business owners think they need more leads.
A lack of leads is a sign that a business is slowly floundering. And rather than fix the holes, they want someone to provide them with buckets to bail them out. Not growing fast enough is never a lead generation issue – it’s a conversion issue.
5. Increase lifetime customer value
Now, before you can increase customer lifetime value, you need to know how much a customer is worth to your business. Without this knowledge, you don’t know what you can invest to acquire a client.
That being said, many entrepreneurs are so focused on bringing in new customers that they ignore opportunities to generate multiple sales through upsells, downsells, and cross-sells, all of which increase value. lifetime of your customers.
6. Profit with triple-win partnerships
With this business-to-business game, you build relationships with companies that are already doing business with your ideal customers. The triple win occurs when you receive a recommendation.
- You get a new client.
- The company you partner with receives a small commission.
- The sponsored person benefits from a privileged advantage, bonus or discount that is not available elsewhere.
This way, the referrer looks like a hero (and gets rewarded). The person who buys receives an additional benefit. And you take on a new client.
Let me give you an example of how it works…
Most real estate developers sell a home and that’s the extent of their income. However, when I owned a real estate development company, we rolled out a three-way partnership by meeting with vendors such as home alarms, furniture, driveway sealers, and home theater companies.
We asked them to give our customers a preferential discount not available to the public. For us, we were asking a modest commission every time someone made a purchase. This allowed the supplier to gain a new customer, the customer to obtain an exclusive discount and us to earn a commission equivalent to thousands of additional dollars per month.
In fact, the three-win partnership has boosted profits so much that we have been recognized by a leading accountant as having one of the highest profit margins in the industry.
7. Develop Quick References
You need a program that inspires groups of enthusiastic fans to sell your product or service for you. Without one, you’re stuck relying on hope and luck for referrals.
Of course, you can set up the “triple-win” scenario mentioned above. People want to feel special, valued and appreciated. So whatever system you set up, work to share rewards for referrals.
Read more: How to incorporate sustainable business practices into your growth strategies
Learn more about how to scale a business
Hopefully this article has helped demystify the nuances around scaling beyond seven digits. As you see, you have clear steps you can take to position your business for this next stage of growth.
Now it’s time to put these 7 steps into action. If you’re into e-commerce, our free Start and Scale course is the perfect place to start growing your business. Instructor Gretta van Riel has scaled $5 million e-commerce businesses and she shares her strategies for success with you.