Top 5 Mistakes Entrepreneurs Make When Scaling Their Business To 7 Figures After scaling several businesses to seven figures and beyond, this entrepreneur has learned what to do and not to do during a period of growth. There are the steps you should take and the mistakes to avoid.
By Scott Oldford Edited by Maria Bailey
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Scaling your business to seven figures is not that hard. But it also isn't easy. At least, it's not easy to maintain a seven-figure business and continue to scale it.
I've learned this the hard way after building and growing several businesses to seven figures and beyond — as well as mentoring and investing in dozens more. It's strange how easy it can feel once you build some momentum. Growth leads to growth and everything seems to be okay. Until all of a sudden, it isn't.
Having gone through this cycle myself, I've discovered a few common mistakes most of us make when in a period of growth. I share these in the hope they not only inspire you to scale your own business to new heights but maintain these levels so you can continue to smash through one glass ceiling after another.
Related: 4 Ways to Build a Seven-Figure Brand and Sellable Business
1. You hire too fast
No matter what industry you're in, it's important to expand your team when growing your business. You can only do so much. You must delegate and work on the business instead of trying to do everything on your own. However, the timing around all this has to be right. If you push too hard too soon, you can overwhelm and halt all momentum.
So although you need to grow your team — and constantly think about the different types of roles you need — it's essential that you get clear on your priorities. By honing in on the roles that offer the most return, you ensure you maintain your momentum without putting too main strain on yourself, your existing team members, and, most important of all, your cash flow.
2. You create too many offers
I see this mistake all the time, often because an entrepreneur gets caught up comparing themselves to other business owners. You've heard the advice before, to diversify your portfolio and add multiple income streams. It's good advice, in part. Yet you have to tread carefully because launching too many offers too soon places far too much pressure on your shoulders. Worse than that, it creates a disconnect between you and your audience because they don't know what they should do next.
Should they buy your course? Maybe hire you to coach them? How about that membership they can subscribe to? Or that other course, program or product?
The last thing you want to do is overwhelm and confuse. Adding new income streams is important, but you don't have to do it all now. Make sure you become a "go-to" authority in one or two areas and provide huge value to those you serve.
Related: Meet the Mother Of Three Making 7-figure Income Working Part-time From the Beach
3. You increase your expenses
This mistake is a byproduct of the previous two because as you grow your team and add new income streams, your expenses rise exponentially. It can seem manageable at first, but before long it can spiral out of control. I've experienced this firsthand as my monthly expenses practically doubled month-on-month. It's a disaster waiting to happen unless you get crystal clear on your finances.
This is a continuous habit you need to nurture, ensuring you check in on your revenue and expenditure each month. It's not that you shouldn't spend more as you make more, but you have to give everything you invest in purpose. Whether that's a new team member, improving your lifestyle or placing new resources into the business, you always have to have a reason for spending your money. If not, you can quickly run out of it.
4. You don't reinvest in your business
This is a huge mistake and once again it's one I used to make. There's so much advice out there about how to invest your money. The problem is, most of it isn't relevant to an entrepreneur because most of it encourages you to take money out of your business and place it somewhere else (stocks, shares, bonds, pensions, etc.). That makes sense for someone with a predictable income. But for an entrepreneur? No way! The best thing you can invest in is your business because this is what you have the most control over. So before you give your money to someone else to invest, make sure you fully support your business with the time, money and resources it needs.
Related: 4 Ways to Invest More Deeply in Your Business
5. You don't take money out of your business
It's important to constantly invest in your business, but you have to continue to invest in your own life, lifestyle and personal growth. In the early days, I also recommend entrepreneurs take as little as they can and reinvest as much of it into their business. Yet this can only last so long. Once you build momentum and step into a period of growth, you have to embrace this yourself — not just as a business owner, but as a human being.
I see this mistake play out too often as successful entrepreneurs struggle to step back and enjoy life. It's a fine balance, yet it's an important one if you want to find harmony. The alternative soon turns toxic as you begin to resent your business. It's an easy fix because all you have to do is to commit to growing as a person as you grow your business. This means you too require (and deserve) investment: money, time, energy and attention.
The rollercoaster ride you're on is full of ups and downs. Just because you're scaling and on the fast track to seven figures and beyond doesn't mean there aren't obstacles in your way. Avoid and overcoming these five mistakes will help you navigate your way to success.
