Is scaling the right choice for your business?
Think, for a moment, about the long-term vision for your organization. Where do you want to be in 1 year, 3 years, 10 years?
Most entrepreneurs are ambitious, driven personalities (that’s why they’re my people). When they think about the future, one word tends to drive the conversation: GROWTH.
Whatever size your company is now, you probably want it to be bigger: double your revenue, 10x your profit, etc.
Growth offers security, prosperity, and an opportunity to reach more people.
But growth isn’t the same thing as SCALE. Scaling a business is a massive undertaking, and the risk/reward potential is high. Running your company at scale will be a different experience than running the company you have now.
I’ve advised 100+ companies, and I can tell you from experience that not every business—and not every entrepreneur—is meant to scale. If you want to run a business over $100M, the “nice to haves” become absolutely necessary:
- Tremendous investment in infrastructure (including the right system to run your business)
- Proven market demand and a value proposition that’s unique enough to be scalable
- Your ability to take less money out of the business for a longer period of time (if you’re not funded)
- A high-risk tolerance to deal with having less cash on hand while you grow
- A process that keeps you and your business healthy (and sane)
The Entrepreneurial Operating System® (EOS®) has a clear mission: to help entrepreneurs get what they want out of their businesses. Is scaling what you want out of your business?
Don’t get me wrong: I’m not knocking scale. I just know it’s not the right choice for everyone. And if you’re trying to scale just because it’s what everybody else seems to be doing, I don’t think the blood, sweat, and tears you’ll put in are justified.
It’s the “grass is greener” problem. Some entrepreneurs get so focused on a business at scale that they overlook the great (highly profitable) company they’re already running. You can be successful—and fulfilled—running a company that makes $500,000 per year or $500,000,000.
The pandemic has created both opportunity and uncertainty, which makes it an excellent time to revisit what you really want from your business.
Whatever you decide, you’re right. When you know what you want, and why you’re doing it, you’re primed for success. And whether you’re shooting for $500K or $500M, we’re committed to helping you knock it out of the park.