Crucial Growth Phase Introduction:
Hey everyone, Tanner here. Today, let’s delve into the common pitfall many business owners face during that crucial growth phase between zero and $50,000 a month. It’s a tricky stage, and I’ve seen many entrepreneurs struggle with it. I’ll share a story to illustrate what I mean.
” Let’s delve into the common pitfall many business owners face during that crucial growth phase between zero and $50,000 a month.”
The Middle Ground Challenge
Many business owners making around $20k to $30k a month find themselves in a challenging middle ground. They’re doing well enough to see the potential for growth, but not quite well enough to build a large team. The methods that got them to this point are often not the ones that will take them to the next level – a realization that many fail to make.
Case Study: A Client’s Journey
I had a client who built her business from scratch, reaching $20,000 a month through organic TikTok content. It was a female fitness offer software, and she was doing great. Then, she shifted to running ads and stopped her organic content efforts, which led to a decrease in profitability despite higher gross revenue.
Crucial Growth Phase: The Problem of Shifting Focus
The issue was not in running ads – I’m a big proponent of that – but in abandoning the organic strategies that were working. When she shifted to ads, her profit margins shrank. This is a classic example of forgetting to track crucial metrics and losing focus on the activities that directly contribute to revenue, like sales calls.
Crucial Growth Phase: A Common Misconception in Scaling
Scaling a business is not about doing different things; it’s about doing the same things more effectively and in a shorter time frame. Business owners, especially in the $20k to $30k range, often become complacent. They forget that the strategies and hard work that got them to their current level are the same ones needed to scale further.
Staying True to the Basics
My advice to anyone in this phase is to stick to the basics that made you successful. If you’re not growing, you’re at risk of burning out and getting stuck. It’s about pushing a bit longer and harder to grow your team and revenue to a point where you can scale sustainably.
Crucial Growth Phase: Final Thoughts
Remember, time management and focus are key. You have more time than you think. Keep doing what works, track your metrics, and focus on your most profitable activities. Don’t get distracted by new strategies at the cost of abandoning the ones that brought you success.
That’s all for now. I hope this insight helps you in your journey. Stay focused, keep grinding, and remember: consistency is key.
See you next time!