A Private Practice. Limited to 30 Founders and CEOs.

Most businesses never pass $2m. Here's what the ones that do have in common

By Jonathan Herps | The CEO Mentor |

3

min read

Owner Freedom

Most businesses never pass $2m. Here's what the ones that do have in common

Most businesses never pass $2m because the thing that got them there is the thing that caps them. What got you here won't get you to the next level, and the competency you need next depends on the stage you're in.

‍

Businesses break at the ones and threes. $100k. $300k. $1m. $3m. $10m. $30m. Each of those is a point where the founder has to change how they think and how they operate. Most of the founders who come to me have hit the $2m to $3m wall and can't see past it.‍

‍

Why does it break at $2m?

‍

‍Because everything that got you to $2m was built by you and around you. Your judgement. Your relationships. Your ability to catch a problem before it reaches the customer.

‍

That works beautifully, right up until the volume goes past what one person can hold.

‍

Then the system that carried you starts to cost you. More people, more handovers, more places for it to go wrong. Every new client makes the machine heavier instead of lighter.

‍

And the tell is that the same year repeats. Two or three years that look almost identical. Bigger revenue, thinner margins, a worse life.

‍

Why doesn't working harder fix it?

‍

‍Because you're already flat out. Harder just moves the breaking point onto you.

‍

Nothing looks broken. Revenue is up. The team is bigger. You're busier than you've ever been. It feels like success, and it's the moment the design stopped fitting the business.

‍

It's structural, not personal.

‍

What do the ones that scale have in common?

‍

‍Three things, and none of them is effort.

‍

They can see their constraint. The businesses that scale past $10m don't have fewer constraints. They can just see theirs, on one page, every Monday.

‍

They have one name against every job. Not involved, not helping. Responsible, in a way that person would say out loud.

‍

They stopped routing every decision through the founder. Fewer decisions through you, a leadership team that runs the week, and a rhythm the business keeps whether you're in the room or not. That's what it means to strategically replace yourself.

‍

Where do you start?

‍

‍Visibility, before anything else. You can't fix what you can't see. One page, a handful of numbers, looked at every Monday. Thirty minutes a week.

‍

‍The one thing to do this week

‍

‍Write down the three decisions that came to you this week that somebody else could have made. Those three are where the redesign starts.

‍

If you want to find your own wall, book a Strategy Session.

‍

Uncover your #1 Bottleneck
in 30 minutes

Don't let your business rely on your presence. Map out a growth plan, identify the one thing holding you back, and leave with a clear plan for what to do next.

Ready To Talk?

Map out a growth plan, identify your #1
bottleneck, and leavewith a clear next step.

Not Sure Where
You Stand?

Score your business across 10 dimensions.
Find out your indicative valuation multiple. Takes 10 minutes.