The statistics are disheartening. So many businesses never make it to $100K a year much less $1MM.
There are 30 million firms in the US and those with no employees have an average annual revenue of only $46,978 per year.
Owners only make an average income of %450,347 per year.
And 86.3% of firm owners make less that $100,000 per year in salary.
So why bother starting a business?
Because you love what you do, you don't want to work for anyone else and you know you can make this business successful. You just don't know why you can't break through.
There are 3 reasons you aren't able to push forward.
With growth comes complexity in communication. Remember when it was just you and one other person. It was a lot easier then, but even communicating with one person can be challenging. Think marriage!
But add another person. This can be a customer, vendor or staff. Now the communication complexity has increased by 6 times. Ok, what if you add a fourth person. Now your communication complexity has increased by 24 fold. That's over a 400% increase. Is no wonder if you have 3 or more staff, you are wondering some days, what the heck is going on? What part of what I just said didn't they understand?
Because of this complexity, firms face these three barriers.
Leadership-You must be able to staff leaders in the organization who can delegate, predict and lead
Scalable infrastructure-You must have systems and structures , both physical and organizational
Marketing-You must have an effective marketing function to attract new customers and meet competitive pressure as you grow
I'm devoting the next two months to diving deep into how to move past these barriers.