Written by Kyle L. Baxter Sr, 10X Business Advisoir
Kyle Baxter is well known when it comes to Growing and Scaling Small and Mid-sized businesses. With tried and true strategies, syatems and methodologies that transform businesses.
As a business owner, whether you're just starting out or have been grinding for some time, do you find yourself feeling stuck? Are you unsure of how to move your business in the right direction toward sustainability and profitability? Don’t feel bad, you’re not the only one.
Here are the stats
There are 31.5 million small to mid-sized businesses (under $100M) in the USA. Of these:
25 million have one employee.
5.3 million have between 2 and 12 employees.
600,000 have 13 or more employees.
Unfortunately, 97% of businesses will fail within 10 years, and two-thirds will fail within 5 years. Additionally, the majority (97%) of businesses are stuck in Breakpoint 1 ($0 to $3M), meaning only 2% of businesses are actually scaling.
The top 3 reasons for failure are
Lack of product and demand.
Inability to find great employees.
Lack of profitability or access to capital.
1. Lack of product and demand
This issue often stems from not building your brand and implementing the necessary marketing. I call it "promoting." Grant Cardone, one of the top promoters in business, always says, “If they don’t know you, they can’t flow you.” And he’s absolutely right. You need your brand to become omnipresent. You and your team need to promote how you solve the problems of your potential clients or customers.
2. Can’t find great employees
I hear this from business owners daily, but they are mistaken. Great employees are out there. You just have to promote what an employee will gain by joining your team. No one wants to work for a bad business owner. Most people are looking for a leader with a clear vision, strong leadership skills, and a solid plan for implementation. This plan should allow employees to share in that vision and achieve their own personal, professional, and financial goals.
3. Lack of profitability or access to capital
Many business owners I advise focus too much on their expenses when reviewing their Profit & Loss statement. I’m not saying expenses aren’t important, but wouldn’t you agree that if your revenue was increasing every month, your expenses would naturally be covered? Moreover, a sustainable revenue stream increases your ability to secure capital for scaling your business.
Small business under attack
The American dream for small businesses is under attack. The threats include inflation, the challenge of finding and retaining good employees, and the rise of new technologies like AI.
There is also a demographic shift, with baby boomers nearing retirement and seeking ways to maximize the value of their businesses before they exit to ensure their financial security in their golden years.
The good news is that all of these challenges can be corrected, and we at Big Bulldog Consulting have solutions for them.
Let me ask you
What would you rather have: a company with a proven track record of growing and scaling businesses, teaching you and guiding you down the right path, and helping you reach your personal, professional, and financial goals? Or would you prefer to go at it alone, using trial and error, risking both your time and money without a clear path forward?
You don’t have to be one of these statistics. There is predictability in business, regardless of the industry. We’ve worked with thousands of businesses like yours in all industries, and we can help you succeed.
So, my question to you is this: If you worked with a company that has a proven record and can show you exactly how they’ve achieved success, would you believe you’d have a higher chance of success?
Defining "scale" vs "scaling"
There’s a difference between scale and scaling:
Scale is maximizing your existing systems and processes within the company’s infrastructure that are already working.
Scaling is innovating or multiplying those systems and processes to maximize new growth opportunities.
Building a business is like constructing a building. You start with the foundation, then add floors. If you try to add floors without the proper foundation, the building will collapse. Why? Because you need the right concrete, rebar, footings, and foundation to support the weight.
We have laws that protect us in construction, ensuring buildings are built properly. However, we don’t have laws that tell us how to grow and scale a business. You can do it in any way you choose. That’s where the problem lies. You need the right strategy and foundation in place to ensure your business doesn’t crash and burn as it grows. There is predictability in scaling and growth.
Breakpoint mythology
There are 7 Break Points in business, ranging from $0 to $125 million. Here’s a breakdown:
Breakpoint 1: $100K–$3M
Breakpoint 2: $3M–$8M
Breakpoint 3: $8M–$15M
Breakpoint 4: $15M–$25M
Breakpoint 5: $25M–$45M
Breakpoint 6: $45M–$75M
Breakpoint 7: $75M–$125M
There are specific things you need to have in place at each breakpoint before moving on to the next. As I mentioned earlier, 97% of businesses that fail within 10 years are stuck at Breakpoint 1 ($100K to $3M). Only 2% have moved beyond this point.
Can you leapfrog breakpoints? Technically, yes. However, if you skip a breakpoint, you’ll have to circle back and implement the necessary elements you missed. If you don’t, you risk experiencing a setback, where your company moves back one breakpoint. A slip-back, which occurs when you drop back two breakpoints, is usually catastrophic for a company.
My partners at Cardone Ventures have worked with over 4,000 businesses in the past four years, and we’ve learned a lot in the process. The Breakpoint Mythology is based on years of research and surveys conducted with businesses we've worked with, not just opinions.
10 elements of scale
Here are the 10 Elements of Scale that are essential for business success:
Strategy
Marketing
Sales
Operations
Finance
People
Leadership
Data
Technology
Investment Thesis
Through research, my partners at Cardone Ventures have identified these 10 elements as the core pillars needed to build a successful, sustainable, and profitable business.
If you’re under the $1M mark and striving to reach $1M, Marketing and Sales will be especially important for you, and we have excellent resources to help. For those of you who have reached $1M and want to continue growing, you'll need to focus on Operations, Finance, and People. As a business owner, Leadership is a key component, and we can help you with that. Additionally, Data, Technology, and Investment will be crucial when you have enough profit to reinvest and create passive income for your future.
What if we could show you how to make this a smooth journey? We can teach you how to pull time and money forward, allowing you to reach the 10th element faster and set yourself up for future passive income.
Many business owners are focused on activities in a higher breakpoint while still operating at a lower one. This is called being “over your skis.” You need to keep the main thing the main thing.
Final thoughts
As Brandon Dawson always says: “We know what we know, we know what we don’t know, but it’s what we don’t know we don’t know that bites us.”
If you're truly committed to growing and scaling your business the right way, click here to schedule a free 15-minute strategy call and let's get your business moving forward to exceed your growth goals for 2025.
Or you can email me here or call me at (770) 733-3470 EST.
Kyle L. Baxter Sr, 10X Business Advisoir
Kyle Baxter is a leader in Business Growth and Scaling, He is the CEO of Big Bulldog Consulting and a 10X Business Advisor who partnered with 2 World Class growth experts in business. He partnered with Grant Cardone and Brandon Dawson (Cardone Ventures). He knew he could create more impact and value for his clients by partnering with great people. He ensures that each business owner imploments the 10 Elements of Scale to ensure that they are sustainable and profitable.
