You can’t scale to a place you haven’t defined. Pick a number. $5 million, $10 million, $100 million. It doesn’t matter which one as long as it’s real and it’s yours. Then work backwards. What does that revenue require in trucks, people, and infrastructure? What does that cost, and when does it need to be in place? Most owners skip this and spend the money as it comes in. New truck here, nice vacation there, and then growth actually arrives and the cash isn’t there to fund it. Know the number before you spend money the next stage of growth is going to need.
@officialchadpetermanTranscript
you're looking to scale your business. I think the first thing to get in mind is where is it that you want to go? I talked to so many owners that they want to scale, but they have no idea where they want to go. And it doesn't matter where you want to go. You want to go to 100 million, do you want to go from five to seven? Whatever it may be, you need to understand what that's going to look like, how much time it's going to take you, and then work backwards to understand how much money you're going to have to invest in that company, to get it to that level. You're going to need new trucks, you're going to need new people, you're going to need more support infrastructure, all of these things cost money. And we need to understand before we take the money off the table and take it out of the company to go by the boat or the car is that boat or car aligned with where I want to take this company.
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