How can creators like us, who are new to building online businesses, who have high-value skillsets, how do we scale our monthly recurring revenue (MRR) to get us the freedom we desire? That is the question, and this newsletter will give you the answers. Be sure to subscribe if these are the type of answers you seek.
My name is Boysie Gordon, and welcome to Boysie Talks Business.
Welcome to episode 23!
In the last episode, I discussed the first mistake most entrepreneurs make. It’s something that can ruin your business in the long run and prolong your success. What is it? A lack of clarity.
Many entrepreneurs think they have a great idea but refuse to refine it.
Getting clarity will ensure that the entire foundation is built up the right way!
Today’s episode is about the second scaling of my business. We had just scaled to $1.4M, but something we did leveled us up, and I had no clue why until now.
I can’t believe I didn’t think of this sooner…
Let’s dig in.
We Scaled Too Quickly
My 1st business grew from $0 to $1.4M in 8 months, most of you know this.
But what you may not know is that right after we hit this milestone…
We immediately lost about 50% of our business.
Why?
Because we scaled our business on a shaky foundation.
And once we got to those heights, it couldn’t support the weight.
The whole system came crashing down, and we were left to pick up the pieces.
The process of rebuilding enlightened me…
I could be doing more with LESS
What Did We Do?
We went from offering every service to only one service.
See, part of the problem with our foundation was that we were spread too thin.
In order to keep up with demand, we had to hire and train brand new employees.
We couldn’t even do that properly, we still had to deal with all this business.
I needed to find a solution and needed to find it quickly.
After running the numbers, I noticed that 90% of our revenue came from one service.
So, I made the informed decision to specialize in this one service.
The minute I made the decision… the gravity set in
What if we lose customers
What if we can’t get more customers
What if we don’t recover from this
Well…
What actually happened was that we received more business, landed more clients, and emerged from the slump.
We niched ourselves down, it actually benefitted us.
See, most people see niching down as a limitation, but in reality, it can become a growth accelerator.
It was much easier for us to build a positive reputation because we were now specialized. It was also much easier to train new hires and facilitate orders.
That decision changed our trajectory in a positive way.
If I had to do it over again, I would start super niche and expand to other niches after I’m established.
If you need help establishing your foundation or would like to start landing clients ASAP, I have 2 slots for April up for grabs (2/4 slots available).
Just reply to this with “scale,” if you are interested.
EP. 23 This One Thing Scaled My Business From $1.4M to $2.5M ARR Sustainably