Scaling is Relative, Part 2

Last week I started talking about scaling and that scaling a business is NOT linear.

Nor is it a fixed process that works for all businesses in all stages.

Just to recap, the first 10X from $100k to $1m is the easiest…

It only takes one successful marketing campaign with an offer that clicks with your prospects to make this leap and you can make this first 10X scale with a single paid traffic channel.

If your existing audience is big enough, you may not need paid traffic at all.

The Second 10X is a Little Tricker

You’ve hit a million per year in revenue – congrats!

Now, here’s the reality…

You may actually be able to make the next 10X leap to $10M per year doing more of the same.

This is really the scaling stage and what you’ll typically need along the way is…

• Specialized hiring to focus on areas now getting more attention like customer service, social media marketing, branding

• You may start hiring for leadership positions here like a head of marketing or a head of operations. Though you really don’t need a whole C-suite to get to $10M.

• You’ll start testing new traffic channels to reach new audiences. If you were all-in on Google search traffic for your first million, then start testing out Facebook or Youtube ads.

• You should also now be in a state of constant optimization. New offers, new campaigns, split testing ad angles – everything you can do to increase profit margins while also increasing revenue

Going from $1M to $10M is about being very specific and intentional about your growth decisions to scale a single product line.

For the Next 10X, Your Mindset & Your Model Change

The reality is not many small businesses make this leap successfully.

The biggest change that often happens in this transition is a shift from vertical scaling to horizontal scaling.

Note, I said “often happens”...

There are certainly some  single-product companies that have made this leap, but I’m trying to cast a wide net here.

From $10M to $100M, the mindset shift is from simple “scaling” to GROWTH.

In growth mode, you’ll start focusing on team building in a different way, bringing in high-quality leaders to run your teams…

And maybe even creating teams dedicated to functions that were less of a focus in the march to $10M per year.

You’ll also start to shift from scaling and optimizing a single product line to creating new products…

Or even new verticals entirely.

Plus, you’ll need a lot more systems and processes in place to make this jump seamlessly. A Director of Operations is definitely a critical hire at this stage.

And it’s important to note here, I’m not just talking about getting to $100M in revenue, but establishing that as an annual baseline.

That level of growth requires very tactical, long-range decisions on market size, audience, product suite, customer retention, a shift to recurring revenue, and so much more.

I also recommend not trying to take this step all at once. 

A comprehensive growth plan should be created with multiple milestones… but ALWAYS keep the end goal (whatever that is for you) in mind so you don’t need to backtrack later.

The Bottom Line

Scaling is different for every business. Don’t let anyone tell you otherwise. 

To get from where you are now to where you want to be takes a tactical approach and an in-depth analysis.

But it also takes an understanding – an ACCEPTANCE really – that what helped you make the first or second 10X leap isn’t what’s going to help you take the next one.

What are your growth goals for the rest of this year and 2025?

We’d love to hear, so hit reply and let us know.

Jon & Chris