At the end of the day, the math is quite simple:
In order to have a $1m business, you must be able to generate $1m in sales.
All the mission, team and profitability things you’ve considered over the past few days are meaningless if you don’t have something to sell — some way of serving people, of exchanging value for value with them.
What we’ve observed time and time again is that there’s a threshold that happens at around the $250-300k mark.
For some people, it’s higher.
For some people, it’s lower.
But somewhere around that point, things get hard.
You have something that’s working, but it’s only working so well.
The question is, how do you get the cash flowing at a higher level?
In other words,
How do you get past that point?
The temptation is to try to create a new way of generating revenue; something else that will be as successful as your $300k service or product. After all, all you need is three products that sell $300k each and you’re almost to that magic $1m mark … right?
Well, yes, that’s the way the math works.
But it’s not the way that business growth works. At least not if you want to do it expediently.
Think about it this way:
Think about the time, energy and resources that you have to put in place to sell $300k of a single product.
Now think about doing that three times over, for three different products.
- Three different things to market.
- Three different things to develop.
- Three different things to sell.
- Three different things to deliver.
- Three different things to iterate and improve upon.
And … you’re going to do it all with the very limited resources that you’ve got, because YOU will continue to be the core driver of all those products.
In essence, when you take this approach, you are not actually building a business that has three products.
You’re effectively building three different businesses, each selling a different product to a shared market.
And all the problems that you’ve identified in terms of constraints with team, with profitability, and on your own personal time?
They don’t go away when you take this approach.
They get worse.
Because you don’t have the underlying structure in place that would allow you to do it any other way.
The simple fact is that at $300k, you don’t have the resources to go start a new product in any way OTHER than to essentially do it all yourself.
So you end up not only being the Chief Candlestick maker of the prior $300k product … but of the new one, too.
Thus, we need an entirely different approach to growing revenue.
That approach, quite simply stated is as follows:
Do more of what works.
In other words, the thing you must be asking yourself is not “what new profit center” can I create, but “How can we use profit and team to help us scale this core product, to the point that we could sell $1m worth of it in a year?”
It is this gigantic leap — from $250k to $1m — that precipitated the fastest period of growth in our company’s history. Because, quite simply, in order to figure out how to deliver $1m worth of our core product, we had to stop trying to just do things the same way as always.
For us to sell $1m of our core product, we had to strip away everything that wasn’t working — in order to double down on what was.
We had to look for ways to get double the results, with half the effort.
It was only when this vital mindset shift was made — that in order to make 10X more, the owner must work 10X less — that possibilities for scale began to open up.
Now, you may be asking yourself:
But what about risk?
Is it not risky to put all your eggs in one basket, with one product?
Well, yes — and no.
Yes, because if that product fails, you have no business. If the market changes to the point that your product is no longer in demand, you have no business.
And yet … how much riskier is it to never actually connect with your market and have a product that’s in demand? To never actually FIND the messaging that resonates with the market? To never actually FIND the thing that you can sell $1m of?
To instead, cover up those fundamental problems with your business by creating a plethora of products which are all average in terms of their ability to sell, to excite customers, and to create real lasting change in the market?
Once you reach the $1m threshold, then you have the cashflow, the team and the support you need to be able to broaden your product suite and start the process of experimentation over again.
Until then, though, if you want to become a $1m company from the inside-out, then, your goal must be to find the simplest, fastest, least complicated way to generate $1m in revenue — and to do it with intense focus on finding one thing that really works … not half a dozen things that only kind of work.