Mastering the Art of Scaling a Service-Based Business

Reading Time: 2 min read

1. Identify your bottleneck: The speaker emphasizes that most people's bottleneck is their inflow of new customers, and they haven't operationally prepared themselves to handle the volume of new sign-ups.
2. Do the math: To grow to a certain number of customers, you need to understand the math behind it. This includes calculating your churn rate, desired growth rate, and the number of new sign-ups you need to achieve.
3. Acceptable metrics: There are basic math metrics that you should accept as part of running a service-based business. For example, 1% churn rate, 50-60% conversion rate, and 10-15 new sales per week.
4. Volume is a reality: Growing a business requires volume, and you need to be prepared to handle the volume of new customers, sales, and customer interactions.
5. Emotional preparedness: Salespeople need to be emotionally prepared to handle rejection and criticism, as well as expectations from customers.
6. Prioritize: Identify your priorities and focus on the most important ones first. Don't get bogged down in non-essential tasks.
7. Delegate and outsourc: To scale, you need to delegate tasks to others and outsource non-core functions.
8. Time blocking: Schedule time blocks for specific tasks, such as sales calls, onboarding, and customer follow-ups, to maintain efficiency and productivity.
9. Accept orders of magnitude improvements: Be realistic about the improvements you can make and don't expect magical solutions that don't exist.
10. Focus on the process, not the outcome: Focus on the process of building your business, rather than just the outcome. This includes building systems, processes, and habits that will help you scale.

Ultimately, the transcript emphasizes the importance of understanding the math behind your business, being prepared to handle volume, and prioritizing your time and energy. By following these principles, you can build a successful service-based business that scales over time.

Source: Your Inflow Is Your Bottleneck (Alex Hormozi), Alex Hormozi