At $500K, the owner is the business. You're driving everything, managing clients, finding new ones, running the day to day with little expectation that anyone else is going to step up. If you get hit by a bus tomorrow, the business is probably finished.

At $3M, the business should be approaching an independent entity, able to operate for an extended period in your absence. Sounds great, but what do you need to make that happen?

  1. A management layer. You can't manage 15 or more people directly and also run the business. This is when you start taking off your hats. You have to evaluate which things are the best use of your time, meaning the things only you can do.
  2. Documented processes. Everything can't live in your head anymore, and it definitely shouldn't live in someone else's. If you want your business to run smoothly and deliver consistent results for you and your customers, you have to create structure, document it, and make sure everyone actually follows it.
  3. Real financial visibility. At $3M in revenue your bank account can go from zero to $250K and back in a week. Accurate, timely financials are critical. Gut feel or your bank balance isn't enough anymore. You have to make the switch to running your business on data.
  4. Strategy. You can get to this point on hard work and determination, but you need focus and alignment to get much further. Keeping all the wheels turning at the same speed and in the same direction means creating a real plan and executing on it.

I love working with businesses at this stage. It's an exciting time, full of challenges and potential. If you're looking for a guide to help you avoid the pitfalls, get in touch.