Building A Scalable Business: Why Most Entrepreneurs Get Stuck

Discover the missing ingredient to scaling your business from 7 figures to 8 figures and beyond.

Building a scalable business that can grow from seven figures to eight figures and beyond can be incredibly challenging, even for the most successful entrepreneurs. In fact, 38% of businesses run out of cash before they have the chance to.

One of the biggest misconceptions is that scale is solely based on sales. However, there are three key elements to achieving scalable growth: leveraged sales, bankable profits, and transferable value.

The SPV Framework for building a scalable business.

Leveraged sales are crucial for a business to scale.

If a business starts from zero every month, it will become a hindrance to growth. Leverage sales ensure that the company is not completely reliant on one person or a few clients and isn’t starting off with zero revenue each month.

Bankable profits are another key aspect of scale.

Companies with a lot of revenue but no profitability are like toothless chihuahuas – they have a lot of bark but no bite. Bankable profits are necessary to give a business owner options, such as raising money or getting debt, or selling the business if needed.

The third and often missing ingredient is transferable value.

The ability of value that exists in a company to be transferred to someone else. Transferable value gives a business owner options and allows it to own its own destiny. When a company has leveraged sales, bankable profits, and transferable value, it has momentum, power, and optionality, which leads to scalable impact.

It’s essential for businesses to have all three elements to scale. A business that lacks one of these elements will get stuck.

For example, a business with no leveraged sales will become a hamster on a wheel, constantly starting over from zero every month. On the other hand, a business with no bankable profit will be like a toothless chihuahua, all bark and no bite.

The SPV Framework for building a scalable business.

In conclusion, scaling a business from seven to eight figures (and beyond) requires a combination of leveraged sales, bankable profits, and transferable value. A business that lacks one of these elements will get stuck, leaving the owner frustrated and burnt out.

By understanding the importance of these three elements, entrepreneurs can achieve scalable growth and make a significant impact in their businesses, communities, and beyond.

Wanna go even deeper? Click here to discover the 8 Reasons Your Company Isn’t Growing As Fast As It Could (And Why Good Companies Fail)

About the Author

Related Articles

Want To Scale Your Company (Without Sacrificing Your Soul?)

Subscribe to our weekly "Scalable Memo" newsletter and get the same updates and insights our portfolio companies receive straight to your inbox...every Monday.

It’s totally free, so sign up today…