98% Of Service-Based Businesses Never Scale
If you want to be a part of the 2% that do, then be sure to read this article from top to bottom,
Because in a bit I’m going to share 10 pieces of advice you can apply to your business right away to begin scaling to 7 figures.
Let’s get into it.
Did you start your business with dreams of scaling to and beyond 7 figures?
If that’s one of your motivations, then building a service-based business is the way to go.
Building a service-based business can be the fastest path to multiple 6 figures…
However there’s a huge “but”…
Unless you change the model,
It’s also the slowest path to a highly profitable 7 figures.
The reality is the vast majority will never reach this income.
Most entrepreneurs could make more money in a corporate job than they are in their business!
And they’d have more freedom, too!…
So what do you need to do to become a part of the 2% that DO scale with a service-based business?
For starters, make sure you’re implementing every one of these tips.
Here they are:
Why 98% of Service-Based Businesses Fail:
1. You Build Your Business Around You (The CEO/Founder)
I spent many years holding myself, my businesses, and my income back.
I often blamed it on this reason or that reason…
But it was always ME as the bottleneck.
- I wouldn’t let go of certain tasks…
- I didn’t create the System/training so that somebody else could do something…
- I led every. single. meeting. and needed control…
- People had to check with me first…
- I had to approve everything…
I was holding us back!
Be honest, does this sound like you?
Then answer this:
Do you want to build a business which gives you limitless time, freedom and income?
Then your #1 goal should be to…
Remove YOU as much as possible.
The first step is awareness and we first have to be clear: you are the bottleneck. Time to change that. 😉
2. Sucking At (Or Neglecting) Hiring
A few months back, a then new client (who’s since more than 3X’d her business) said something interesting.
“I know I need to delegate because I don't have time, but because I don't have time I can't find people to delegate to.”
She wasn’t the first client of ours to say this, or the last.
Can you relate?
No time for the important stuff because you’re trying to just survive and/or grow! There are fires to put out, clients to tend to, bills to pay… How can you also hire??
If I had to bet, you’ve probably gone through a few employees who didn’t work out perfectly.
So what’s the solution?
It’s your lack of systems.
Good systems set up your team to succeed. They help them perform well, and produce results.
You’re already doing all of the work, you might as well as start turning things into systems so you can.
Also… as you continue to build your team in the future, you’ll want to create a system for every step of the hiring process from finding A-Players, to onboarding them, and turning them into rockstars.
Systems are the key to get you free. They’re also the key to scale. Master them and you’ll get everything you want out of business.
3. Never Investing – In Themselves, Their People, Their Business
Recently, I sat down to have dinner with one of my biggest mentors.
He’s made 10’s of millions of dollars in his career and spends nearly $500k per year on himself, his mind, his education.
What does it take to be the best?
Constantly learning, getting better, having coaches, and training to take the shortcut to the results you want.
The best in the world in any industry know the underutilized tool of investing in yourself.
And the same applies to your team as well.
If you want to be good, invest in yourself.
If you want to be great, invest in your entire team.
4. Lack of Cash Flow
Simple fact about business:
If you don’t have cash in the bank, it’s REALLY difficult (and stressful) to grow and scale quickly (especially from 6 to 7 figures).
Because if you want to grow, you need to invest.
You need to invest (in people, inventory, tools, ideas, projects…), and the only way to do this is if you have CASH!
It blows my mind how few six-figure businesses focus on this…
And it’s why it’s almost always one of the first things we focus on when working with a new client.
Take this approach and you’ll much more quickly get to 7 figures.
5. Going Too Broad
The recipe for a fulfillment nightmare is to try and serve everyone.
When we speak to a potential new client for 2X, we often meet a lot of resistance with this.
They say something along the lines of:
- “I can help a lot of different types of people with my product / service” …
- “We don’t want to pigeonhole ourselves in any one industry” …
- “I’m worried if I niche too deep, I’ll leave a lot of money on the table” …
The truth is, you can make multiple 7 figures with most niches.
The problem is, too many entrepreneurs try to become everything to everyone.
It reminds me of this quote from David Allen, the author of ‘Getting Things Done’:
“You can do anything, but not everything.”
So if you want to scale and grow, you need to get clear on who you are helping and how.
6. Having No Systems To Repeat
When you’re growing to 6 figures, you most likely don’t need a ton of systems.
BUT… if you want to scale to 7 figures and beyond, you NEED systems (100%! No Exceptions!)
Because systems help you:
- Repeat your successes …
- Be consistent at all times …
- Work with speed and efficiency …
- Reduce mistakes …
- Remove bottlenecks …
- Increase profits and reduce costs …
Systems are what will set you free.
7. Your Offer Isn’t Good Enough
This one might be tough to admit.
It may even dent the ego a little bit. 😬
But I do come with some good news…
The good news is that there can be more than a few (100% fixable) reasons for why your offer isn’t world-class YET.
Here are a few:
- You’re stuck doing the day-to-day of fulfillment and don’t have any time to improve your offer…
- You’re trying to be everything to everyone instead of creating the perfect offer for ONE type of person. (See #5)
- You haven’t asked your clients for feedback to iterate and improve.
Here’s some more good news.
On the other side of an irresistible offer, you can expect a few amazing things, like:
- Repeat Business (Think higher LTV)
- Word Of Mouth (Happy customers usually bring friends)
- Easier Fulfillment
Then dial in on your offer – the details, positioning and fulfillment of it ASAP.
To get to 7 figures you can’t have crap services. Make something the best in the industry, print out success stories left and right (like we do in our 2X Growth Program) and then market it like mad.
8. Staying Stuck In The Weeds
99% of the time, before we focus on marketing, sales or anything else, we fix this first.
Why is this important?
Because we have to get you free, get you 15+ hours back, and get you working on the ‘right’ stuff – the income producing, growth-oriented activities.
Low 6-figure entrepreneurs work “in” the business…
Fast growing 7-figure business owners work “on” it.
If we do nothing but get you out of the weeds, you’ll be able to actually apply your energy to growing the company.
How cool would that be?
It’s more than possible. In fact, it’s essential to get where you want to go.
9. Keeping A Fearful Mindset
One of the hardest things to do when growing is learning to let go.
I get it.
Delegating tasks you’re more comfortable doing yourself is scary.
But it’s paramount to scaling.
Investing cash into yourself, your employees, and your business is scary.
But it’s paramount to scaling.
I can go on and on, but you get the trend.
Just remember this:
“If you feel uncomfortable, know good growth is happening.”
To get 7-figure results, you need to make 7-figure decisions.
Stop the fear and get to the next level first… and your results will soon follow.
10. Letting Your Fulfillment Suck
This one is closely related to #8.
Honestly, it’s so important, it’s absolutely should be mentioned more than twice.
At the end of the day, service-based businesses start and end with this one thing:
How good you are at fulfillment?
If you make a best-in-class service that creates raving fans and is set up so that it’s scalable (where you aren’t the superhero stuck “in” the weeds), you are able to work on the stuff that matters.
This is a winning combination… that can lead you to 7 figures.
So, to recap:
You must master Systems…
You must build the Mindset needed to get from 6 to 7 figures…
You have to build and optimize your Team…
Get out (and stay out) of the weeds…
Create a best-in-class service…
And you’ll be in a market of one as the go-to in your niche.
Ready to take the leap from 6 to 7 figures in your service-based business?
Book a call here to talk with one of our 2X Growth Advisors about the next 90 days and the key levers you can pull to scale faster than ever.