Categories of Business Scale
Discover where your business stands today — and what it needs to scale tomorrow.
Startup Phase ($100K to $250K)
The title of this phase may seem misleading if you’re transitioning from the Micro Biz / Side Hustle Phase. However, the distinction lies in the fact that if you are approaching or have broken into the $100K annual revenue range. You may also have lept into this category by either buying a franchise or acquiring an existing company with proven systems and processes, which would align you more to the Start-Up Phase. That said, there’s still plenty of work ahead.
At this point, you’ve made several sales, fulfilled products or services, and established the outline of a business model. You are now beginning to develop repeatable processes to achieve consistent results. This is where the real work starts.
It’s important to note that approximately 25% of businesses fail or shut down within their first year. If you’ve made it to this phase, congratulations you have likely made it a year or are about to! However, without the right systems and processes, you risk joining the next 25% of businesses that fail within the following few years. The primary focus at this stage remains on marketing, sales, and client fulfillment, but now you must establish scalable and repeatable systems. Below is a breakdown of the 6 Core Competencies and the key objectives in each category.
Your 6 Core Competencies Reviewed
Leadership & Vision
The clear vision, business plan, and personal goals you started with are now evolving into a formalized strategy for scaling your business.
At this stage, you should be able to articulate your vision clearly and inspire others to see it too. You may even be recruiting a team to support this vision. It may be just a team of one other, however, this is where your company culture begins to evolve.
Effective delegation becomes critical. Many owners struggle with entrusting others, often due to poorly developed training programs or unclear expectations. Whether you're still using virtual assistants and freelancers or have hired your first employee, developing this skill is critical.
Build strong time management and communication skills to optimize how you leverage OPT (Other People’s Time).
Financial Acumen
Utilize your accounting system (e.g., QuickBooks, Wave, or Xero) to track income, expenses, and generate accurate reports. Reporting is key here, if you need help get someone to help you understand these reports.
If not already in place, hire a bookkeeper and work with a tax preparer. This investment saves time and ensures compliance.
Begin establishing business credit, including a business credit card and a line of credit, this will help improve cash flow flexibility. Remember, it’s not if you need money or capital, it is when. Get qualified for loans and credit when you don’t need it, even if you don’t want or intend to use it. If you have to get it because you need it, it will cost twice as much and be 3 times harder to obtain.
Develop Key Performance Indicators (KPIs) to track business activities. Examples include cost per acquisition (CPA), job costing, average revenue per client, and gross margins. These metrics help you make data-driven decisions.
Sales & Marketing
Focus on affordable resources like social media and in-person networking to build awareness and attract clients. Determine and focus on your highest-value product or service initially, almost exclusively to enhance profits.
Start with a simple website or leverage your social media profiles; avoid overinvesting in branding until you have consistent sales.
Create a sales process that is repeatable and measurable. Refine your approach based on conversion data.
Invest in basic marketing materials, such as business cards or a digital business card solution, to support networking efforts.
Capture all of your lead generation efforts in a CRM for communicating and following up with potential clients.
Operational Excellence
Optimize your personal productivity using tools like task management software (e.g., Trello, Asana, or ClickUp).
Automate basic processes wherever possible, such as client follow-ups, scheduling, and invoicing, to save time.
Consider a lightweight CRM or an industry-specific business management solution to keep operations organized as you grow.
People Management
Learn to leverage human capital without committing to permanent hires.
Outsource small tasks to freelancers (e.g., bookkeeping, graphic design, social media management) using platforms like Fiverr or Upwork.
Use AI tools (e.g., ChatGPT, Jasper) to enhance efficiency in areas like content creation, customer communication, and administrative work.
Consider solutions like GPT Agents for regular administrative work to reduce your time doing redundant tasks.
Explore virtual assistants for administrative tasks you lack expertise in, freeing your time for strategic activities.
Customer Focus
Build strong relationships with your initial customers and collect testimonials to boost your credibility.
Use your Google Business Profile to capture and showcase customer reviews. Display testimonials prominently on your website and social media.
Implement automation tools to manage client communication, follow-ups, and deliverables efficiently.
Listen to customer feedback and adjust your offerings, solutions, and expectations to better serve your market.
Your Most Prominent Challenges
At this stage of development, these are the most common challenges you will likely face and some quick tips on how to avoid or resolve them.
Cash Flow Challenges
With limited startup capital, managing cash flow becomes critical. Inconsistent income and underestimated expenses can quickly derail progress. Track income and expenses from day one, even with a simple spreadsheet, then upgrade to tools like QuickBooks or Wave as you grow. Maintain discipline—monitor cash weekly, set aside reserves, and delay unnecessary spending to keep your business financially stable.
Generating Sales
At this stage, consistent sales are essential but often difficult to achieve. Many startups lack clear messaging, structured processes, or visibility. Define your target customer and the problem you solve, focus on your most profitable offer, and use low-cost methods like social media and networking to reach clients. Capture leads in a CRM, refine your sales approach, and focus on repeatable actions that drive predictable revenue.
Cost-Effective Marketing
Marketing on a tight budget requires focus and creativity. Instead of overspending on branding or ads, leverage free or low-cost tools—social media, email marketing, and customer referrals—to build awareness. Create basic but polished materials, gather testimonials, and use automation for follow-ups and posting. Consistent, strategic activity will stretch your budget while steadily growing your visibility and client base.
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