As a small-business owner, are you intentionally taking the right steps to increase your profits?
Or are you still doing things the way they’ve always been done, savouring the same level of success you’ve always enjoyed, while secretly wondering what it would take to make that leap into seven-figure territory? If that’s the case, it’s worth reflecting on the path you’re on and asking yourself, ‘What’s holding me back from reaching my full potential?’
As a qualified accountant with over a decade of experience, coupled with my role as a money mentor for more than six years, I’ve had the privilege of working with a diverse range of brands and industries. My mission has always been to unlock substantial growth in these businesses. Over the years, a few consistent themes have emerged that often serve as barriers to the growth to which business owners aspire. Identifying these barriers and understanding how to overcome them can be the difference between staying where you are and breaking through to the next level.
If you’re striving to build a seven-figure business, it could be that one or more of these four common blockers is holding you back:
1. You don’t have a strong handle on your finances
As business owners, we’re conditioned to keep a watchful eye on our expenses. And while this is smart – after all, you need to know where your money is going – it’s just one part of the financial equation. The other, more crucial part is understanding your profits.
Many business owners aren’t intimately familiar with their numbers. They can’t confidently tell you how much profit their business made last month, last quarter, or even year-to-date. It’s not uncommon, even for those generating multiple six-figures or more annually, to be unaware of their actual profitability.
If this resonates with you, don’t be embarrassed. You’re not alone. However, it is a critical area that needs addressing. Being crystal clear on both your actual profit and the potential profit in your business is not just important – it’s essential. This understanding goes hand in hand with being well acquainted with your profit-and-loss statements, which are the backbone of your business’s financial health. If you don’t have a firm grip on these documents, scaling your business to seven figures becomes an uphill battle.
The first step is to get comfortable with your numbers. If this isn’t your strength, talk to your accountant, who can help you interpret your financial statements and understand where you stand. And even if you have a great accountant, you should invest in mastering your own financial literacy (through an online course, or by learning from a qualified finance professional) so that you understand the mechanics of your business profit and cashflow. Regularly reviewing these numbers will give you the insights needed to make informed decisions that drive profitability and growth.
2. You don’t have a plan for your growth
One of the most common reasons businesses plateau is the lack of a solid growth plan. It’s not enough to want growth – you need to map out a strategy that outlines exactly how you’re going to achieve it.
I’ve worked with everyone from small solo operators to multimillion-dollar businesses. One consistent truth I’ve discovered is that significant income leaps require a plan. You can’t just hope for growth; you must actively plan for it.
Investing in yourself and your business is crucial. This could mean investing in further education, hiring a business coach, or upgrading your systems and processes. If you’re not willing to take risks and step outside of your comfort zone, you’ll struggle to make the big strides needed to reach the next level.
Growth doesn’t just happen – it’s a result of deliberate actions. Opportunities don’t simply fall into your lap; they’re created through intentional planning and preparation. Start by setting clear, achievable goals. Once these goals are established, work backward to identify the smaller, actionable steps you need to take to achieve them. This might include expanding your product or service offerings, entering new markets, or refining your customer acquisition strategies.
3. You have limiting beliefs around money holding you back
Another barrier to growth is the presence of limiting beliefs around money. These beliefs are often deep-seated and unconscious, meaning you might not even realise they’re holding you back.
Let me give you an example. Suppose you aspire to attract top-tier clients and charge premium prices for your products or services. You want to be recognised as a leader in your industry. However, you’re also cautious about your spending, worried about putting pressure on your cashflow. As a result, you cut corners – like building your own website instead of investing in a professional one.
In this scenario, your fear of spending money is directly limiting your growth. You can’t expect to attract high-end clients with a brand that doesn’t reflect the value you offer. The first impression potential clients have of your business is often from your website or branding materials. If these don’t convey quality and professionalism, you’re missing out on opportunities.
To overcome these limiting beliefs, you need to shift your mindset around money. See it as a tool for growth rather than a resource to be hoarded. Strategic investments in your business – whether they’re in marketing, technology, or staff – can yield returns and help you scale more effectively.
4. Your marketing is not nailing it
Marketing is one of the most powerful tools you have to grow your business profit, yet it’s often one of the most mismanaged. If your marketing isn’t driving results, it’s not just ineffective – it’s a waste of resources.
Do you want to know the best, most impactful way to make more money? It’s by marketing your business effectively. Conversely, one of the quickest ways to waste money is by investing in the wrong type of marketing, or worse, not tracking your return on investment (ROI).
Consistency in your marketing efforts is key, but so is ensuring that you’re consistent with the right strategies. A scattergun approach to marketing won’t cut it. You need to be intentional with your strategy, ensuring that your branding, messaging and channels are aligned with your business goals.
I recommend conducting a thorough audit of your marketing activities. Identify what’s working, what isn’t, and where you have the most potential for growth. For some, this might lead to doubling down on social media efforts; for others, it could involve refining your brand positioning to build greater awareness or focusing on customer acquisition through targeted advertising.
There’s a vast world of opportunities out there, and sometimes all it takes is a slight pivot in your marketing strategy to unlock growth. The difference between maintaining your current trajectory and catapulting your business into seven-figure territory often lies in how effectively you’re able to market yourself.
By addressing these four common blockers – by gaining control of your finances, creating a growth plan, overcoming limiting beliefs around money, and optimising your marketing – you’ll set yourself well on your way to scaling your business successfully.
Remember, the journey to a seven-figure business isn’t just about working harder; it’s about working smarter, making strategic decisions, and positioning yourself for sustained grow
This article first appeared in issue 46 of the Inside Small Business quarterly magazine
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