We know how frustrating it is when your business isn’t growing at the rate you think it should.
Andrew and I have gone under the hood of dozens of different companies over the years and now when a company approaches us, it’s easy to spot the ones that will be able to scale up, and the ones that will struggle.
Today, we share seven reasons why your business might not be scaling and what you can do to fix it. We’ll talk about market size, margins, LTV, and product diversification, and how all of these things impact your ability to scale. This episode will help you identify potential issues and give you solutions for the most common reasons why your business isn’t scaling.
Enjoy!
Episode Highlights
- 4:32 Reason #1 why your business isn’t scaling: Your market is too small or too cheap.
- 6:25 What to do if your market is too cheap.
- 7:50 One solution for scaling up if your market is too small.
- 8:43 Reason #2 why your business isn’t scaling: Your contribution margin isn’t large enough.
- 10:29 How to solve your contribution margin issue.
- 11:26 Reason #3: Your AOV or LTV is too low to advertise profitably.
- 13:13 The workaround for increasing LTV if you have a low AOV.
- 15:02 Reason #4: You don’t have any repeat customers.
- 16:08 How to build a product system that will get you repeat customers.
- 18:21 Reason #5: You don’t have complementary products.
- 20:20 Reason #6 why your business isn’t scaling: You’re too cheap to hire quality people.
- 22:25 Reason #7: You have a product that you sell, not a business.
- 23:48 If you’re just selling a product, here’s what you need to do to build a business.
- 25:39 You don’t always have to scale to be successful.
Links And Resources
Are you ready to hit 7-figures and unlock massive profit in your eComm business in the next 12 months?
If you want to scale up fast, while remaining profitable, we can help. We’ve worked with hundreds of early-stage eComm owners to pour the fuel on their businesses and level up from 6-figures to unstoppable 7-figure success.
This isn’t just getting you set up with the latest FB ads strategy or email marketing. We’ll help you see the big picture on how you can build and scale a profitable company with the right systems in place.
Are you ready to make your first million? Click here and LET’S GO!
Sponsor: Klaviyo
If you’re looking to grow your business, there’s only one way. By building real, quality customer relationships. Most marketing software will claim that they do this, but they’ll never deliver on those promises. Klaviyo, though, is different. Klaviyo helps you build meaningful customer relationships by listening to and understanding cues from your customers, which allows you to easily turn that information into valuable marketing messages that’ll help grow your business and make more money. That’s why over 10,000 innovative brands have switched to Klaviyo.
If you aren’t already a customer, head over to www.ecommerceinfluence.com/klaviyo and you’ll get a free trial + priority on-boarding.
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