Three Warning Signs Your Business is NOT Scalable
Another year has begun, and goal setting is at the top of many minds! The most common goal my clients tell me they want to achieve is to make more money. If that’s one of your goals this year, I encourage you to look at this from the perspective of scaling your business to make more money. Why? Simply making more money is a quick win. You can increase your prices in a snap (and thus make more money) but still remain at relatively the same level.
On the other hand, scaling your business will give you more time and financial freedom because your growth will no longer be dependent on you alone. Here are three warning signs that your business model is NOT scalable. To watch my video on this topic, click here.
1. Your income is dependent upon how many hours you work. If you provide a service and get paid by the hour, the maximum amount of money you can earn is determined by the number of hours you can work during a week/month/year. A simple example – if you can only work 40 hours per week at a rate of $25 per hour, your income is capped at $1,000 per week. What if you want to make more money? In this model, you’ll need to work more hours, which likely means nights and weekends. Trading dollars for hours not only limits your income but it quickly leads to burnout.
2. You are a one-person army and do everything yourself. Truth: A one-person business is NOT scalable, no matter how productive you are. If all the responsibilities of running the business belong to you, it will be impossible to grow past a certain point. The size of the business will always be limited to your time, energy, and abilities.
3. You are the bottleneck in your business. It is a-ok to be the face of your business, thought leader, creative genius, etc. But if you have a team that you’re not fully empowering, the business will still be difficult to scale. You’re creating a bottleneck in the flow of getting work done if your team waits for you to distribute work, review and approve everything, provide training and answer questions, etc. In this scenario, you’re no longer a one-person army but you’re still limiting the size of the business.
I would love to offer you some ideas and solutions for overcoming these obstacles, but every business model and owner are different and require customized advice. So if you know that you want to increase your income this year and understand that a more scalable business is the answer, I invite you to book a 30-minute business audit call with me. We’ll identify 3 shifts you can make to create a more profitable and scalable business this year. Click here to grab a time now – don’t wait!
Lastly, if you know a business owner who desires more time and financial freedom, please feel free to share this information with them.