7 Mistakes To Avoid When Scaling

Accelerating Sales to Scale your Business

CTA Cloud Consultants Collective

Scaling is important because of the compounding of money. Running a business is risky, but if you can draw cash to invest, that could limit the risk. The best way to do that quickly is to scale fast. The quicker you scale, the less risk.

In this solo show, Paul shares his experience scaling businesses in the corporate world and his own and the mistakes he made in the process. He lists 7 of the most common mistakes to help you avoid them.

 

1:14 – Why can I talk to you about the mistakes to avoid when scaling.
1:52 – In love with your platform.
2:50 – Inability to let go.
3:58 – Mistiming hiring.
5:07 – Not knowing your numbers.
6:23 – Customised.
7:18 – Selling one to one.
8:13 – Serving everyone.
9:50 – Three key actions from today

 

CTA Request Transcription

 

1. In love with your platform

When we’re selling a platform, we focus so much on the features and everything clients can do with it that we forget about the results they want to achieve. The reality is that people generally only use 20% of the features to get the desired outcome.

We may be overcomplicating demos, which get people overwhelmed or disinterested. And that means we could lose sales, and if we lose sales, we lose revenue and cash to reduce the risk of the business.

 

2. Inability to let go

Just because you should do something doesn’t mean you should. There are only a few things as an owner that you can only do. So set the strategy and be the face of the business, but let your team handle other parts of it.

 

3. Mistiming hiring

You should always be looking for talent because it’s usually too late when you need the talent. How many times you’ve been desperate and hired someone that didn’t work out because you’ve rushed and needed someone in the seat. So, what process can you set up so that you can always be hiring?

 

4. Not knowing your numbers

Do you have a rolling profit and loss? Do you look at it weekly? Do you review your cost base? Do you keep a claim P&L? Do you run scenarios on your pricing to see what you can do by adjusting your pricing versus all of the costs of bringing on new clients?

You should always be ready for sale, regardless of whether that happens or not, and knowing your numbers leads to better action. If you have a business model that makes you work hard rather than smart, the numbers will help you get the right business model and scale faster.

 

5. Customized

We all start our business as high touch. But at some point, when you get product-market fit, you need to streamline your business. So you need to look at your core processes and see how long they take and what can you reduce? It’s tough to automate things If they aren’t standardized. You can play the custom game, but make sure that you’re charging accordingly. So what could you standardize today?

 

6. Selling one-to-one

I still believe you’re the best person to sell the business, but you don’t have to do all the tasks. You can get help in sales and admin to support your work. If you got that right, but you’re still selling one‑to‑one, that’s the next step to scaling your business. Look for strategic partners who already have the clients or are spending to acquire them, which will lower your cost to serve.

 

7. Serving everyone

At the start, we all serve everyone to get cash in the business, and that’s completely fine. And your vendor or your platform partners send you prospects from all over the place. But to be honest, you’re the highest-paid person in the business, which normally is doing sales. So if you’re not qualifying a lot, it becomes very expensive and hard to scale. By automating the vendor leads and building a niche, you are going to be known for having the industry knowledge, and people will come to seek you, which makes it easier to sell and close deals.

 

Three key actions from today

1. Look across the 7 mistakes and take one action for each 

2. If you need help with scaling your business and happy to talk to you. Go to Paulhigginsmentoring.com

3. Check episode 366, where I talk about the four things to get right when selling your business.

 

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CTA Cloud Consultants Collective