This podcast episode is a special presentation on our VIP live coaching call that I had. I got a question from one of our students on how to scale up. Now that his business is doing well, he wants to keep his momentum going. I think you’re going to get a lot out of my answer. Let’s listen in.
So, we go through the feast or famine phase a lot. I started going, there was a lot of ups and downs in my business and when it comes to the feast phase, the most important thing I can tell you is to take all of the extras that are coming in, whether it’s connections, whether it’s resources, like monetary resources, and you need to invest them into a stronger foundation so that this ceiling that you’re now on becomes the floor for your business from here on out. I’ll give you some examples from my past. So there was a time when, it was about four years ago, things were just … We were crushing it. We were bringing in a lot more money than we needed. We just kept building out. I kept building my team and we had a really good pace and I had a lot of money in savings.
So what I did is I took that money that I had in savings and I actually purchased another one of my competitors, right? So what that did is that allowed me to not only really plant my feet in the local community, but also it created more residual revenue because he had contracts that were paying out on a monthly basis for maintenance contracts. Well, I paid him. It’s been four years. I’m still getting the monthly fees from those contracts that he has. The relationships that I’ve created from buying all of those contracts has created other really cool relationships as well, right? So What I did was, as I said, “Okay, I am not going to let this be a fluke. I’m going to keep it here.” But to do that, I was … My infrastructure didn’t allow me to stay up at that top of the level, right? So I had to build underneath that.
So most of the time that looks like building in people that can help us keep it at the top, whether that’s a virtual assistant that helps us to follow up, whether that’s somebody that can come in and partner with you, which is there’s a lot more risk there, but it could be a great solution, whether that’s hiring a team member to do some of the things that are not as revenue generating for you. It’s all about identifying really where your strengths are. For me, what I noticed is that my strengths, when I make the most revenue is when I’m on the phone selling or when I’m at the computer writing content, right? So I’m either on the phone or writing content. Anything else is not a money making thing for me. I can delegate it out, whether that’s writing a Facebook ad, building a website, et cetera.
These coaching calls are great. I love these coaching calls. This is a great other revenue generating source for me as well. So this is not something I delegate and unless I’m not going to be able to be here, then I’ll have somebody stand in. But for you, where you’re at right now, you’re in a very exciting spot of your business and you want to make sure that you never sink lower than this right now. That’s going to require spending a little bit more time building up a team and a foundation. Ask yourself this question because our imagination has a lot of our solutions. We just don’t know how to access them, which sounds kind of loosey goosey. But let me explain.
So if your business right now, I’m just going to throw out random numbers, I don’t know where your business is at, but if your business is currently at the $100,000 mark, right, and now you’re on track to get say to the $200,000 a year mark, based on the contracts that you have and the team you’re building, what I would encourage you to do is to think, “Okay, I’m on track right now to get to 200,000. What do I have to do? Who do I have to hire? What do I have to invest in to get up to the 500,000?” Right? So in other words, it’s like I’m quintupling where my business was last year. When you start to look at that, you’re going to recognize a few areas that you’re probably going to need to improve on. One is team, right? Two is how you spend your time. Three is literally capital investment, marketing, infrastructure, like tools and software.
Because the software and tools that I use now, now that my business is in the seven figure range as opposed to where it was few years ago, right? Completely different. The software tools that I have are completely different, right? Because the software and tools that I had before were … They did a good job of keeping me where I was and I’m not saying that to be negative, it’s just that was the infrastructure that I built, right? So now that my business and the things that I, the assets that I’ve acquired require better. They didn’t just magically get there, right? I had to build the infrastructure, pay for the tools, find the team members so that I was able to keep that momentum going and keep climbing.
So I would encourage you right now, Matthew, I would encourage you to say who am I going to hire on my team? It doesn’t have to be an expensive person, right? It could be just someone to help you with followup. Where am I going to invest my funds, Facebook ads, direct mail marketing, wherever that looks like? So you keep the new people coming in because that is so important. Then three, and this is one that gets fun and exciting for builders like you and I, right, what new revenue streams am I going to create in my business so that I’m not just relying on what I’m doing right now? Because my business before when I was like, “Oh wow, things are going really good.” We were just web design and hosting, which was great. The hosting provided that nice residual, which was why my competitor was such … I was so excited to buy him out because he also had a lot of residual.
But I knew that there was a limit to the amount of growth that I wanted in those two businesses because web design is … I mean, you know the game, it can be kind of a pain, right? So I looked at different revenue streams. So that’s when I started to go into the info product space and the coaching space because these were new revenue streams. So I could just tap my current customers or my past customers on the shoulder and say, “I got this new stuff.” It was a great way for me to generate, keep generating revenue at a great pace while also not having to do the super labor intensive work of building a website and all this stuff that was very expensive for me to produce. I was able to invest in high margin, low time returns in revenue. So that’s a very long answer for you. But that is what I recommend, man, is investing in your team, looking to invest your capital in your marketing so you keep new clients coming in and then investing in new revenue streams.
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