What’s one of the main concerns we hear from business owners eager to scale? How do you maintain cash flow while you grow? How do you scale a business sustainably?
It’s a valid worry because the people, technology, and other resources required for growth aren’t cheap. Overreach and you risk capsizing; don’t push far enough and you may find yourself stuck in the water.
We spoke to serial entrepreneur and author of Scale Up Faster, Pete Martin. Drawing on his own experience working for companies like IBM and SAP, as well as three years of research (studying hundreds of businesses and interviewing nearly 100 CEOs for his book), he shared his findings about the most successful scalers.
🎧 Head over to the Sparks by Ignium podcast for the full conversation.
What did they have in common? It wasn’t business degrees, extensive reading, or elaborate plans. Over four years or more, these bootstrapped companies doubled their revenue each year and generated what they needed to grow from within. How did they do it?
They all had a purpose
Whether it was personal or corporate, Pete found that each had a ‘single-minded purpose’ – even if it took several pivots to achieve success. Surprisingly, when many were asked about their exit timing or strategy, they chose to keep going because it felt like a game. What else would they be doing? It was about more than making money.
💡If money were no longer an issue, would I still turn up for work?
They had a chip on their shoulder
Pete relates the story of one woman who was denied a college education like her brothers, and decided to make it on her own. With grit, ingenuity and gumption, her bouquet delivery business took on the big players as she ingeniously carved out her own differentiated corner of the market.
💡Can I make the chip on my shoulder work for me?
They were focused
‘Focus on doing one thing, one way and be the absolute best at it,’ Pete says when talking about how to scale a business sustainably. Many fall into the trap of scattergunning how they bring a product to market. ‘This is contrary to the nature of most entrepreneurs who want to chase the next shiny thing,’ he continues, ‘but it does take pig-headed discipline.’ He recommends choosing your channel in order to master it.
💡When do I lose focus and why? What patterns can I see?
They were all about the action
The successful entrepreneurs Pete spoke to weren’t in their offices; ‘They were in the trenches with their customers,’ he relates. Talking, testing, sometimes failing but always, somehow making it work. They just figured it out as they went, each with their own North Star.
💡Do I hide behind thinking and planning?
And how did they raise the cash to scale on the go?
Each entrepreneur had raised enough money to found and then scale a viable business from scratch. What was the secret? ‘The no.1 thing that will move the needle the most is the price,’ Pete says.
What’s the key to this? Establishing pricing authority. ‘When you stand out, you can ask a different price,’ he explains. ‘Different is better than better.’ Not just any difference – but one that matters to customers, so much so that they cannot do without whatever you’re selling. This is what drives more cash, so that you can evolve faster. This is how to scale a business sustainably.
💡How different am I from my competitors? How can I lean into it?
The message of action
Although an important aspect of the work we do with our clients is the planning stage, we’re fully behind what Pete has to say about getting your hands dirty. Surprisingly, many of the people he interviewed didn’t have degrees or huge piles of business books – they just had the tenacity, focus and willingness to do whatever needed to be done, as well as an intimate relationship with what their customers desired.
Find out more
Catch up with the whole conversation in the Sparks by Ignium podcast. Pete talks about the advantages of bootscaling, particularly suited to the more maverick or independently minded entrepreneur. He also delves into why it’s so difficult (but necessary) to be vulnerable and why culture is imperative to success – and at every turn, there’s a story from the field to back it up.
🎧 Click here to head over there now or search Sparks by Ignium on your favourite podcast platform and Pete Martin.
If you love the episode, please like, comment and subscribe. Remember to share it with others too, so that they don’t have to grow broke. And we’d love to know what you think of this article and our discussion with Pete. Simply drop us a line.