Why Most $1 Million Founders Never Reach $10 Million
Scaling a business requires a new mindset. Here’s what’s holding you back.
As a business coach who has worked with numerous founders and CEOs, I’ve seen firsthand the challenges that come with scaling a business. Many founders can get their companies to $1 million in revenue, but very few successfully push through to $10 million.
The reason? They often rely on the same strategies that got them to $1 million without realizing that what worked in the early days can hold them back in the next growth phase. Here are five common mistakes founders make that keep them from scaling to $10 million—and how to overcome them.
1. They won’t stop selling.
One of the most significant barriers to scaling is the founder’s inability to step back from the sales process. Early on, the founder is often the best salesperson, intimately familiar with the product and passionate about its value. However, this approach needs to scale. To move from $1 million to $10 million, founders must shift from being the primary salesperson to building a scalable, repeatable sales system.
This means hiring a sales team, developing a robust sales process, and investing in tools that allow the team to operate efficiently. A well-designed sales system can generate revenue predictably and consistently, enabling the business to grow beyond the founder’s capacity.
2. They want to be the smartest person in the room.
Founders who want to scale their businesses need to hire people who are smarter and more experienced than they are in key areas. Unfortunately, many founders surround themselves with “yes” people—team members who are more concerned with pleasing the founder than challenging them or bringing new ideas to the table.
To reach $10 million, founders must build a leadership team of seasoned executives who can drive the company forward. This requires letting go of the need to be the smartest person in the room and embracing the collective intelligence of a robust and diverse team.
3. They are too internally focused.
Another common mistake is spending too much time tweaking internal operations and systems instead of focusing on the external market. While efficient operations are crucial, they won’t drive growth independently. Founders need to get out of the office, engage with customers, understand competitors, and build strategic relationships to propel the business forward.
By shifting focus from internal processes to external opportunities, companies can unlock new markets, forge valuable partnerships, and tap into additional revenue streams that are crucial for scaling. This strategic pivot enables businesses to explore untapped potential and innovate, thereby driving growth and enhancing competitiveness in the market.
4. They micromanage people.
Founders often micromanage their teams, focusing on tasks and processes rather than outcomes. While this hands-on approach might work in the early stages, it becomes a bottleneck as the company grows. To scale effectively, founders need to develop leaders within the organization who can set goals, create strategies, and execute them without constant oversight.
By empowering team members to make their own decisions and take full ownership of their projects, founders can significantly free up their own schedules. This approach not only lightens the leadership’s workload but also cultivates a culture of accountability and innovation within the organization.
Such empowerment leads to a more engaged and motivated team, as individuals feel valued and trusted to drive results. This strategy not only accelerates growth but also encourages a proactive and creative work environment where everyone feels responsible for the company’s success.
5. They don’t leverage external resources.
Finally, many founders fall into the trap of thinking they must do everything themselves. This “I can do it better” mindset limits their ability to scale. Successful founders understand the value of leveraging external resources, such as investors, advisors, consultants, and coaches. These resources can provide the capital, expertise, and strategic guidance needed to scale more quickly and profitably.
By strategically leveraging external resources, founders can effectively avoid common pitfalls that many growth companies face. This approach enables them to make more informed decisions backed by expertise and insights that they may not have internally. Consequently, this strategic advantage can significantly accelerate their growth trajectory, allowing them to achieve their business objectives more quickly and efficiently.
Scaling a business from $1 million to $10 million requires more than just hard work—it demands a fundamental shift in mindset and strategy. By stepping back from sales, hiring top talent, focusing on the market, building leaders, and leveraging external resources, founders can break through the barriers that prevent them from reaching the next level of growth.
