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Everyone wants to build and scale a company to $100 million.
But very few understand how to do it.
Here's a realistic path to building a $100m+ business:
But very few understand how to do it.
Here's a realistic path to building a $100m+ business:
Every company starts somewhere.
Most start with 1 product for 1 specific type of customer.
Don't make the mistake of obsessing over market size just yet.
You can't get to $100 million if you don't first get to $500k.
Most start with 1 product for 1 specific type of customer.
Don't make the mistake of obsessing over market size just yet.
You can't get to $100 million if you don't first get to $500k.
The best way to create a product?
Solve a problem.
Pick a market you know and solve a problem for a specific type of customer.
Again, don't obsess over scale just yet. That will come later. First, you need to make sure your product/service works.
Solve a problem.
Pick a market you know and solve a problem for a specific type of customer.
Again, don't obsess over scale just yet. That will come later. First, you need to make sure your product/service works.
To get to $3 million or so in annual revenue, all you need is:
1. A product that solves a problem for a certain type of person
2. A process for executing the service or delivering the product
3. A way to consistently get new customers
That's it!
1. A product that solves a problem for a certain type of person
2. A process for executing the service or delivering the product
3. A way to consistently get new customers
That's it!
Too many new entrepreneurs think they need to come up with the "next big thing" or some completely new, revolutionary idea
If you want to build a $1 trillion business, then maybe
But most companies that grow to $100 million don't sell a revolutionary product
If you want to build a $1 trillion business, then maybe
But most companies that grow to $100 million don't sell a revolutionary product
Take Amazon for example.
They're just Walmart but more convenient..
Nothing revolutionary here - just a solid idea that improved upon the existing options in the marketplace. And the company is now worth trillions.
They're just Walmart but more convenient..
Nothing revolutionary here - just a solid idea that improved upon the existing options in the marketplace. And the company is now worth trillions.
Now that you're at $3 million in revenue, how do you get to $100 million?
The answer: You need to reinvent your company.
Most assume that you plan to get to $100m from day one.
But this isn't how companies are actually built.
The answer: You need to reinvent your company.
Most assume that you plan to get to $100m from day one.
But this isn't how companies are actually built.
Instead, you build to a couple million in revenue...and then you reinvent the company to take the next leap.
Here's what needs to change to go from $3m to $100m:
-The founder goes from doing the work to putting the team in place that does the work
Here's what needs to change to go from $3m to $100m:
-The founder goes from doing the work to putting the team in place that does the work
-Strategy becomes much more important. When you're a startup, strategy can shift easily. But what about when you have 100 employees? Making a change can take several months - so your strategy better work
-Finances: Tracking expenses and margins can get very complicated
-Finances: Tracking expenses and margins can get very complicated
You're no longer leading a small business. You're building a machine.
It's like going from driving a truck and watching 3 gauges to flying a fighter jet with hundreds of switches.
It's a lot more powerful, but you better know what you're doing once you're behind the controls.
It's like going from driving a truck and watching 3 gauges to flying a fighter jet with hundreds of switches.
It's a lot more powerful, but you better know what you're doing once you're behind the controls.
Here are a few examples:
-You go from leading sales and meeting with your biggest customers regularly to having a sales team of dozens of people
-Your income statement goes from easy to understand to a complex document with hundreds of different types of expenses
-You go from leading sales and meeting with your biggest customers regularly to having a sales team of dozens of people
-Your income statement goes from easy to understand to a complex document with hundreds of different types of expenses
-You go from 1 product with a few variations to dozens of different products and revenue streams
-You no longer work closely with every employee as your headcount gets into the hundreds
In other words: There's one major difference between a $100m company and a $3m company:
-You no longer work closely with every employee as your headcount gets into the hundreds
In other words: There's one major difference between a $100m company and a $3m company:
Processes.
The bigger company knows how to keep growing. If you want to keep growing your company now, you better turn your bottlenecks into smooth SOPs (standard operating procedures) that anyone could execute
The bigger company knows how to keep growing. If you want to keep growing your company now, you better turn your bottlenecks into smooth SOPs (standard operating procedures) that anyone could execute
Here's a thought experiment: If I brought you $1 million in additional revenue today, would your team be able to handle that additional work?
If not, where would the company break, and how badly?
If you want to be a $100m company, the answer to the 1st question must be 'yes'
If not, where would the company break, and how badly?
If you want to be a $100m company, the answer to the 1st question must be 'yes'
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Tom Ross 🇺🇦 @tomrossmedia
·
Nov 4, 2022
This is great. Living this atm.