There aren’t many people who can walk into a gym for the first time and squat 300 pounds. It takes time, effort and training to develop the skills and strength to move that much weight.
And the process is filled with ruts and plateaus.
Businesses face a similar dilemma. Companies hit revenue plateaus as they grow. Their growth slows down or stalls, and breaking free of these plateaus requires a change of approach.
Companies have predictable revenue plateaus
- $1 million
- $5 million
- $10 million
- $25 million
- $100 million
- $1 billion
Each plateau involves a major shift for the business. It requires different skills, resources and systems to break through the plateau and reach the next level.
At each level it often feels like you’re throwing the baby out with the bath water. The team, systems and approach that got you to $1 million aren’t the same at $10 or $25 million.
Invest in the next plateau
Breaking through the revenue plateaus requires investing in the infrastructure of the next level.
For example a $5 to $7 million business needs to invest in the infrastructure of a $10 million business. Once the systems, talent and resources are in place the company can experience a growth spurt and burst through the plateau. And the process repeats itself as they charge towards the $25 million level.
To break free of your current plateau develop the capabilities of the next level.
One goal at a time
How do you eat an elephant? One bite a time.
Breaking through the plateaus are a series of big goals. Goals that transform your business, your approach and your brand.
But those big goals can be broken up into smaller goals. Every quarter set reasonable goals to develop key capabilities in your business — your sales force, digital marketing, or some other aspect of your company.
What are the key pieces of infrastructure your company needs to put in place to reach the next level? What can you focus on for the next 90 days?
Use quarterly goals to progressively build up your firm’s capabilities, and break through the plateaus. It’s just like building up the strength to squat 300 pounds. Build from today, and develop the strength and skills for your next plateau.