Let's talk about GROWTH versus SCALING phases in your business as it relates to the online space, your mindset and investing. But first let's unpack why it's so important to know and understand the difference...
It doesn't feel good to not see a return on investment whether that's on time, money or energy spent.
Growth in business looks like your expenses growing as fast as, if not more, than your revenue can increase. The reality of growth is that it eats up cash flow. Growing a business is a commitment, as you know. There are many question marks; what if? what next? what the heck? this math doesn't add up?
Growth phases are crucial in business to provide us with proof of concept and to decipher how to scale. According to Payscale small business owners in Canada are bringing home an average salary of $47500 per year. And nearly 90% of small business owners are earning under $100000 annually, this statistic is very similar in the US.
Scaling is a phase in business when your revenue increases more rapidly than the amount of expenses incurred. This means that scaling affords you the cash flow to sustain the new level of success through strategic investments. Think: coaching, team building, systems, ad spend and more.
On the flip side, investing while growing is A-OK. If you're weary of this, know you're not alone and that there are plenty of opportunities to make bad investments out there! A CEO knows they don't know what they don't know, so being willing to invest in experts is what separates stagnant small businesses from ones that achieve scaling and sustainability.
Here are my top tips to prepare you for scaling while you're still growing:
BE CLEAR ON YOUR NICHE
This may go without saying, because you've heard it from everybody and their dog who makes a living online, but you must get this right if you intend to see sustainable growth. If you're not super-niched yet, don't fret! You're in a growth phase and you have time to explore what niching down looks like for you!
BUILD IT FROM THE TOP DOWN
Create and refine your product suite from a top level, signature framework and add products for each of the iterations of the ideal client. Packaging up new offers after you've taken the time to understand and solve your client's pain points through the use of you unique, evidence based framework means you'll be able to increase your revenue without increasing your expenses significantly. You'll waste no time and resources creating messaging that converts and products that serve powerfully.
At the end of 2020 after a year of hardcore growth I was able to scale up in December. Here's a breakdown of my larger investments:
$2500 - Mentorship Program
$1000 - Group Program
$10700 - Mastermind Program
That's 14K. And it's only part of the picture it doesn't include costs associated with outsourcing, my brand refresh, any tools or resources I use in my business or a membership I attended for most of the year! Was is worth it overall? The answer is a resounding yes. I sold 14K on contracts in December alone.
Let's talk about how can you maximize the coaching investments you make while growing...
Ask yourself these questions:
Will it save you time?
Just because you can learn anything and everything under the sun on Google and YouTube doesn't mean you should. The time you'll need to do adequate research on successfully launching a course online for example, entails more than creating it...believe it or not. In order to achieve a happy work-life balance it may require you to reduce the amount of time you're seeing therapy clients.
Not only have you reduced your income, but DIYing anything usually results in some trial and error. It may become so time consuming (and frustrating) to turn a profit you may give up or not even move beyond the research phase in the first place.
Investing in a course or coach who can show you the ropes in a specified time frame for a pretty penny will allow you to gain the succinct knowledge you need to create, launch and sell your course. Plus if you're personally offended at the amount of money you've spent, you're likely to show up and follow through!
You'll be able to create and launch or re-launch products with the knowledge you gained over and over again!
Will it save you $$$$?
Mistakes cost money and time. This is why I am constantly in some type of investment and in some cases more than one. I'd rather pay for support on tap, new knowledge in the form of classroom style learning and community I can call on when I need it upfront.
Your paid support network isn't like a proud family member who doesn't know what Instagram even is. It's job is to inform you of what your online business is going to look like in 6 months and what you need to do today to stay the course.
In order to be sure the investment is a $$$$ saver not a $$$$ sucker, be sure to break down the costs associated with the offer. Is this truly enough 1:1 time for you to learn, grow and thrive in the timeframe you'll be working with this provider?
Will you learn a new skill?
Before we default to asking, "will this make me more money?", we have to consider if this investment will provide and indirect ROI for your business. An ROI that is immeasurable but impactful is often worthwhile.
Taking a course now to learn and new skill and save you money could end up saving you big bucks on experts in the long term while not negatively impacting your sales.
Will it make you money?
Despite my education history and work experience, learning the ropes of online business and social selling as my own personal brand has been a journey to say the least. Sometimes the investments we make can help us save time, save money, learn a new skill and ultimately make more money.
For therapists this typically looks like learning to jack up their rates, build powerhouse frameworks, make sales online and ultimately transition to a primarily 1:many model of business. Of course this is a brief overview of what your process may entail.
Before investing consider how many clients you'd have to pick up in order to break even, does it make sense to proceed?
Check out this video to see me talk candidly about growth and scaling back in August of 2020 ⬇️
If you're ready to take the leap and begin growing the business and life you've been dreaming of so that you can ultimately scale with success down the line, I have one spot left in my mini-mind program Therapists in Demand! Time is running out as we kick off the group in two weeks! You can get in touch with me here to snag the last spot!