How to scale to a SIX FIGURE Business!

What if I told you that all of my virtual CFO clients are six-figure earners?

That means that each year, each one of my clients generate at least $100,000 a year in revenue. Some of my clients are making a quarter of a million dollars in annual revenue. Contrary to what many people may think, it's not impossible for small business owners to generate six-figure earnings. In fact, many entrepreneurs, contractors, freelancers, and even side-hustlers are doubling and tripling their income by investing in business strategies that work.

Here are my top tips on how to scale your small business so you too can be a six figure earner.

What’s your pricing strategy?

First things first, implement a pricing strategy.

A lot of small business owners tend to feel like they're not generating enough business profits while others may be generating enough profits but working way too much. Trust me, you DON’T want to be in either situation. A pricing strategy doesn't have to be complex or expensive.

Remember this easy formula for mapping out pricing strategies: (What I want = My price x how many times I can deliver). Another way to look at it is: (My price = What I want/how many times I can deliver).

For example, if you want to make $100,000 a year selling paintings and you can only make 50 paintings a year, then you must charge $2,000 per painting to reach your goal. $100,000 = (50 x $2,000) or ($2,000 = $100,000/50).

Maybe you realize that $2,000 a painting is too high of a price point for your customers. In that case, there are various options you can implement to charge a reasonable price while also reaching your revenue goal. You could get a larger studio space to produce more paintings or even start offering alternate forms of art at a lower price. Either way, the first place to start is a pricing strategy to make sure that your revenue income goals are realistic and attainable.

The Power of Delegation.

Another thing you’ll learn as a new entrepreneur is that you can’t do everything yourself. You’ll eventually need to delegate and hire others in order to scale and take your business to the next level. Being able to lead a team and provide thorough instructions is key. You’ll need a team supporting you so you can take (and enjoy!) those off days. This is how you go from working everyday to make money to making money everyday regardless of whether or not you work.

A common trick to help with delegation is to document repetitive tasks. Refer back to your weekly or daily to-do list and identify which tasks you can delegate to others. Write it all down and keep track of what you're doing on a day-to-day basis. Better yet, record yourself completing various tasks. You can later use these same videos as training videos for new team members. Something as simple as hiring a virtual assistant can go a long way!

And don’t underestimate the importance of hiring professionals! A lot of time and money could be saved by doing things right the first time around. This is where third-party professionals come in. Maybe you’re not that great at graphic design and video editing. Or maybe you need to engage a professional lawyer or accountant to stay compliant with tax and/or legal requirements.

Warning! Watch out for “gurus” who are only in it for the money and hire real professionals who have the proven qualifications and experience.

Prioritize your Bookkeeping.

Lastly, do NOT overlook bookkeeping. Bookkeeping will allow you to track your business performance. Without bookkeeping, it’ll be hard to know exactly which strategies to implement, what strategies worked, and what strategies didn't work. Don't get caught up in all the finance lingo. Bookkeeping does not have to be as confusing or stressful as people may think. It may not be the most fun part of business ownership, but it sure is one of the most important!

Even if you have a smaller business with only a few weekly or monthly transactions, tracking those transactions in a notebook or spreadsheet can help you maintain some kind of financial records. These records can be compiled and organized into financial data that you can use to make business decisions.

Some small business owners feel comfortable upgrading to a bookkeeping software like QuickBooks, Freshbooks, or Xero. These software were designed for small business bookkeeping and have user-friendly platforms that are easy to follow. As mentioned before, this is where a third party professional can come in to help you get organized and make sure that you're meeting all your tax and legal requirements.

In the End….

There are several key takeaways here:

• You must have a specific pricing strategy. It should be one you can consistently follow and replicate to see results.

• Delegate! Delegate! Delegate! Don’t think you can do everything on your own, you only hurt your business when you refuse to outsource.

• Take charge of your bookkeeping. It’s not the most exciting part but it is the reason your business will make smart, informed business decisions!

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