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There are two types of scaling your business – and the business world often throws them around interchabably. It’s time we distinguish these two meanings and use them effectively to scale your business to 7 figures!
The first definition is “to climb up and over to reach a certain height.” This is like when you do something for the first time, or you figure out what works in order to reach your first 6 figures. You’re literally climbing one step at a time- testing different grips and footholds, and trying not to look back or look down. Your journey to 6 figures involves trying different strategies, offers, niches, messaging and more to see what works.
This is the DIY phase of scaling. You may not realize that you’re adding too much to your plate and it’s weighing you down. In this phase you are likely hustling to make progress.
The second definition is “to increase in proportional dimension.” Doing more what already works, and creating repeatable results. This is the phase that will get you to 7 figures.
I use the STAR Method to help my clients scale to 7 figures:
S – Systems – Creating and documenting systems that work and can be repeated over and over.
T – Team – Entrusting others to run various aspects of your business.
A – Automation – Getting the right tools in place that save you and your team time.
R – Recurring Revenue – Building the safety net of ongoing revenue that you can rely on.
It’s important to know what stage you are in. Using scaling strategies that don’t match where you are will keep you stuck. Think of the first phase as “addition” and the second phase as “multiplication.” Remember that during the first phase, you’re still trying to figure out what works. If you use the second phase strategies here, you’re multiplying by zero. Hence, you’ll get zero results! One of the common mistakes of entrepreneurs is implementing advanced strategies too soon in their business.
Once you’re ready to implement the second phase, you can start multiplying but not by using the first phase strategies. It’ll be like constantly adding zeros and hoping to see growth in your business. If you continue to hustle, you’re going to burnout because it’s not getting you where you want to go.
Listen to today’s episode to find out how to transition to the 2nd, more effective way of scaling your business!
Well, hello there. I'm so glad that you're tuning in to this episode because there is a big distinction that I want to share with you around scaling your business. This word is used a lot, but there are really 2 different phases of scaling your business and 2 different definitions as well, and this is important for you to know because the strategies used to scale are different in each phase, and trying to implement the wrong phase of scaling to your business will keep your business stuck. To understand the 2 phases of scaling, let's look at the 2 different definitions. The first is to climb up and over to reach a certain height. Now this is the kind of scaling required when you do something for the 1st time, or you figure out what works. Right? You're trying to figure out for the 1st time what's actually going to get you to your goal. And so, this is the kind of scaling that will help get you to your first 6 figures.
And that first definition, to climb up and over to reach a certain height, is a great metaphor for the time that it takes to get you to that first 6 figures because if you know what that's like then you know you're literally climbing one step at a time, testing different grips and footholds and trying not to look back or look down. Right? Your journey to 6 figures is much like this, trying different strategies, offers, niches, messaging, and more. You are just trying things out to see what will work. And, sure, you're gripping tightly to minimize those potential slips that will set you back, but you're working so hard to hang on and to get to the top, right, to that 6-figure milestone. This is the phase that's really the DIY phase where you're trying to do it all yourself. Not realizing that with everything you add to your own plate, it's like adding more weight to your backpack as you climb. So this is why many people talk about hustling, and this is definitely that hustling phase of entrepreneurship. It takes that hustling phase to get to the next phase, and that next phase or that second definition of scaling is scaling that involves increasing and proportional dimensions.
Now what this type of scaling means is to do more of what already works. This phase involves creating repeatable results. This is the type of scaling that will get you to 7 figures and it's my favorite type of scaling. It's the type of scaling that I talk about the most. Now this is the type of scaling that I help my clients achieve using the STAR method, and we've covered this before, but I'm going to just touch on it here again because it's really important that you get a good sense of the difference between the 1st definition and second definition, and some of that difference comes by looking at how you achieve that second phase, of scaling. And so, the STAR method that I developed is First Systems, and this is similar to creating a well-worn path. That path that you've already paved or a proven process that you can do over and over again in your business. So, all the things that you've already figured out that work, you're documenting and creating that system so it can be repeated more easily over and over.
The T in the STAR method is team and, again, this is like unloading your backpack as you hire team members and eventually even handing off your entire backpack altogether as you entrust others to run the various aspect of your business. So, hiring a team is that 2nd step. The third is automation. And this is all about getting the right tools or equipment or technology in place so that certain systems in your business can operate without actually requiring any time at all. Other than the initial setup, these automations will run on their own and save you and your team time. And then the R is for recurring revenue. And this is like building that safety net, of ongoing revenue in your business that you can rely on. We've talked about certainty in my Facebook group recently and building that recurring revenue is definitely going to increase that certainty for you moving forward by building out recurring revenue that you can forecast and depend on in the coming months and not focusing only on creating new revenue every single month in the same month.
Right? But knowing that you've got a good base of revenue to build on. Now, at the beginning, I mentioned that using scaling strategies that don't match where you are will keep you stuck. So, we talked about the 2 different phases of scaling, the 2 different definitions of scaling, and the first being what really gets you to that 6 figure milestone, which is more of a hustling climbing phase, but then the 2nd definition or phase, which is more about scaling what works and that's what will get you to 7 figures. But what you need to know is if you prior to implement strategies for the other phase, it's not going to work. In fact, sometimes it does more harm than good. And I'm going to geek out just a little bit and use some math analogies here but stay with me. It's just basic math that we're going to focus on here. So, I want you to think of the 1st phase like addition and the 2nd phase, like multiplication.
The 1st phase is growing little by little. It's slower growth, but it's more sustainable when you're first starting out. If you're in this phase and then you try to use the 2nd phase strategies, then that's like trying to multiply by 0. And if you multiply anything by 0, you know what you get. Right? You get 0. You can't effectively multiply what hasn't already proven to work, or you'll simply be trying to scale mistakes, which will get you nowhere, or if you try to apply other strategies like hiring a team, you may not be able to support in a team if you don't have consistent cash flow yet. So, you need to bring in a team only when you have that cash flow or when you know that that team is going to deliver a return on investment. And you can't count on them to do that without repeatable systems.
So again, trying to implement those 2nd scaling phase strategies when you're still in the 1st phase will They keep you strapped. They're actually going to limit you and hold you back or put more of a burden on your business. So, there's a time and a place for those, and I think that's a common mistake. A lot of entrepreneurs, a lot of new entrepreneurs here, many of us talk about some of these more advanced strategies and try to implement them too soon in your business. And with that said, there's no set amount of time that is the right amount of time. One person might be ready for those 2nd phase strategies within a month or a few months or a year. It really, I think, more so depends on how much you've scaled your revenue and you've been able to get that consistent recurring revenue, to come in. So that's going to be more of that sign of whether you're ready to move on.
Once you've Hit that milestone of 6 figures or you have a good base of, let's say, around 10k a month in recurring revenue, then you're ready to move on and you're ready to implement the 2nd phase. And so, again, I want you to think of that 2nd phase more like multiplying. You can grow so much faster when you multiply instead of adding. Right? You can multiply exponentially, but not by using the 1st phase scaling strategies. If you keep hustling, it's like you're constantly adding zeros and hoping to see an increase. You'll end up burning out. If you're the one hustling, then eventually You're going to burn out because it's not getting you where you need to go fast enough or at all. Now, again, I could keep geeking out over math analogies, but I'll spare you anymore.
I do hope that that helps illustrate the principles thereof, how the right strategies need to be used at the right time. But all of this goes back to the last episode's topic about what got you here won't get you to 7 figures, so go listen to that if you haven't, and know that the phase of scaling you're in is important. Knowing what that phase of scaling is critical to your business. You need to know where you are and then make sure that you're implementing the strategies that match the stage of scaling that you're in. If you do nothing else today, What I want you to do is make at least a mental note of which phase of scaling you're in and maybe do a little self-audit of the types of strategies you're implementing in your business. Are they the first definition of scaling where you're doing just a little by little and trying to do it all yourself, getting results much like addition, just a little bit at a time, Or are you multiplying in your business? Are you scaling up what already works? Do you even know what works? If you don't know what works, I can definitely help you. Let's chat or join my workshop that I mentioned, and we will get you going in the right direction and make sure that that your strategies match the phase of scaling that you're in. Alright.
I will talk to you next week!
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