The 7 Levels of Scale PDF Free Download
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LEVELS
OF SCALE
THE
7
If you want to profitably scale a business to 8-figures (and
beyond), you need a framework that’s proven to work. That’s
why we created the 7 Levels of Scale. It’s the shortest path
possible to go from a struggling startup to a high-profit, high-
impact, exit-ABLE business that gives you the wealth and
freedom you deserve. If that sounds like a worthy goal, then
let’s get started…
OUR FRAMEWORK
PROVEN
Get 10 Customers
LEVEL 1:
1
Automate Growth
LEVEL 2:
2
Upgrade Your OS
LEVEL 3:
3
2X Your Take-Home
LEVEL 4:
4
Build Your Board
LEVEL 5:
5
Expand With M&A
LEVEL 6:
6
Hit Your “Number”
LEVEL 7:
7
“What do I do
FIRST?”
My partners and I have been teaching
entrepreneurs about growth and scale for over
20 years. We talk about things like finding
product/market fit, strategic planning, systems
and process documentation, as well as tactical
stu like budgeting, hiring, firing, and even
micro mergers and acquisitions.
But the big question everyone kept asking is,
"What do I do first?"
“What’s the order of operations for how I
should scale my business?”
The "7 Levels of Scale" framework is our
answer to that frequently asked question.
Our goal with the "7 Levels of Scale" is to
provide you with the shortest path possible to
go from a struggling startup to a high-profit,
high-impact, exit-ABLE business that gives you
the wealth and freedom you deserve.
If that sounds like a worthy goal, then let’s get
started...
Before you can scale your business,
you must first confirm that you 1)
have something people want to buy,
and 2) are able to deliver on the
promises you're making. The simplest
way to check this box is to sell and
serve 10 customers as fast as you can.
Not only will this provide some much-
needed cash flow, it will also provide
the insights, data, and confidence you
need to scale to the next level.
And here’s the deal: Getting your first
10 customers isn't a question of ability,
it's a question of will.
1
Think about it...if you absolutely had to go
out and find 10 customers...if your life or the
lives of the people you love truly depended
on you making 10 sales...you could do it,
right?
Of course, you could!
So don't worry about
HOW you get these
first 10 customers.
Now is not the time to focus on scalability.
Just find 10 people willing to pay you for
your product or service, and do everything
you can to turn them into successful and
raving fans.
And if you already have more than 10
customers, that’s great!
DON'T WORRY ABOUT
HOW YOU GET THESE
FIRST 10 CUSTOMERS
“
MODEL 10 LIST
Take a moment and list out at least 10 of your
most successful and enthusiastic advocates by
name. We call this your “Model 10” list, because
these are the 10 customers and clients who will
serve as models for you as you scale.
ACTION STEP
My Model 10 List:
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
In many ways, Level 1 is the easiest level to
reach. After all, it’s only 10 customers, right?
But in many other ways, Level 1 is easily the
most dicult level to reach.
So which is it? Easy,
or dicult? That’s for
you to decide, and at
the end of the day, it
doesn’t really matter.
Nothing will happen
until you sell and serve 10 customers, so
focus all of your attention on this singular
goal, because once you have your “Model
10” list, you’re ready to proceed to Level 2,
so let’s go there now...
NOTHING WILL HAPPEN
UNTIL YOU SELL AND
SERVE 10 CUSTOMERS
“
Once you’ve check all the boxes below,
you’re ready to move onto LEVEL 2.
Generate (at least) 10 sales
Fully deliver on the promises
made for each customer
Make a list of your “Model 10” customers
(Highest LTV + High Advocacy)
Date Completed:
_____ / _____ / _____
Now that you have confirmed product/
market fit (that’s just a fancy way of
saying people actually want what you’re
selling, by the way)...
...it’s time to shift from one-o sales to
predictable, repeatable sales. To do this,
you need a “Growth Flywheel.”
The first step to building your Growth
Flywheel is to visually map your
customer/client acquisition process.
(We call this your Growth Engine). You
can get as fancy with this as you want
to, but we like to keep it simple and use
post-it notes and a whiteboard to do
our customer journey mapping.
Next, you'll need to build a scorecard that monitors how your
Growth Engine is performing on a weekly basis. We call this
your Growth Scorecard, and again, it doesn’t have to be fancy.
We use Google Sheets to track our critical metrics on a weekly
basis, and then note using red, yellow, or green if one of our
growth metrics is behind, on track, or ahead of goal.
Finally, you'll need to establish a 90-day sprint cadence that
leverages data (not "shiny objects") to identify and optimize
the weakest links in your Growth Engine. We select 3 key
initiatives every quarter that we believe will turn the red
metrics to yellow and the yellow metrics to green.
Repeat this every 90 days, and you'll have a profitable and
unstoppable Growth Flywheel spinning out new customers/
clients from scratch. You'll also be ready to move on to Level 3...
LEVEL OF SCALE 2
Once you’ve check all the boxes below,
you’re ready to move onto LEVEL 3.
Visually map your customer acquisition
process (a.k.a. Growth Engine)
Build a metrics/KPI scorecard (a.k.a.
Growth Scorecard)
Identify 3 - 5 projects to optimize your
Growth Engine
Establish a regular planning and
optimization cadence with your team
(Recommended: Every 90 Days)
Date Completed:
_____ / _____ / _____
At this level, the goal is to transition from
a YOU-dependent business into a fully
systemized and scale-ABLE business that
can run and grow without you.
To upgrade your company’s operating
system you must FIRST document the “set of
algorithms” that make your business run. Your
algorithms are all the playbooks and SOPs...
along with the team
members responsible
for executing them...that
are truly critical to the
value creation process.
Second, you need to define your company’s
“communication architecture.” Your
communication architecture includes both the
scorecards and dashboards you and your team
are looking at, as well as your meeting and
announcement cadence.
The third and final step in upgrading your
business operating system is to clarify the
company’s “desired outputs” so your people
and systems are all aligned to a common goal.
This process is simple, but it’s not easy. When
you complete it, your reward will be a business
that can run and scale without you, meaning
you can step out of the “day-to-day” and do
only the high-leverage work you love doing. It
also means you can proceed to Level 4…
THIS PROCESS IS SIMPLE,
BUT IT’S NOT EASY.
“
Before we talk about Level 4, I just want to pause and
acknowledge something really important.
Once you ascend beyond Level 3, you have crossed
what we refer to as “The Scalable Line.”
The Scalable
Line
At this point, your business still hasn’t reached its full
potential, but that’s only just a matter of time. Because
once you pass from Level 3 onto Level 4, your business
is ocially scale-ABLE.
In other words, it is ABLE to scale, because you have
built and deployed the necessary systems that hold
most businesses back.
So if you have made it to this point, then
congratulations!
Once you’ve check all the boxes below,
you’re ready to move onto LEVEL 4.
Document at least one Value Engine
(Growth + Fulfillment)
Assign clear roles and responsibilities
so everyone to everyone on the team
Build scorecards and dashboards at the
team and company level so you can
monitor performance in as close to real-
time as possible
Define your company’s meeting rhythm
and methods of communication
Clarify and publish your company’s
goals (short, medium, and long-term)
as well as your Core Values
Date Completed:
_____ / _____ / _____
LEVEL OF SCALE 3
Now that sales are growing and the
business is running like a well-oiled
machine, it’s time to shift the focus
to bankable profits, and, specifically,
putting more of those profits in YOUR
bank account.
That’s right, it’s time for a pay-raise!
Not only have you earned, but if your
company is going to scale to the
next level, you need to eradicate fear
and uncertainty, and one of the best
ways to do that is to ensure that your
personal, day-to-day needs are taken
care of.
I couldn’t, so I doubled my salary. And it felt so good that a few
months later, I doubled it again.
My company never felt it, but I sure did. I finally had the
confidence and peace that allowed me to think and plan for the
long term instead of always worrying about the next 30 days,
and you better believe my company felt that...and so did our
customers.
So, when was the last time YOU got a raise?
If you’re looking for permission, this is it...but only once you’ve
ascended to Level 4.
CAN YOU HONESTLY SAY YOUR
CUSTOMER IS PRIORITY #1 IF
YOU’RE WORRIED ABOUT PAYING
YOUR OWN BILLS AND PUTTING
FOOD ON YOUR OWN TABLE?
AND TO PROVE IT TO YOU, I WANT
TO ASK YOU A QUESTION…
We recommend increasing your take-home pay 25% per month
until you have either doubled your salary or you are generating
enough after-tax income to fund your lifestyle and still set
aside at least 10 - 15% for savings and investment.
This may sound selfish, but it’s absolutely the most valuable
thing you can do for your business.
Once you’ve check all the boxes below,
you’re ready to move onto LEVEL 5.
Commit to (at least) doubling your
current take-home pay in 3 - 4 months
Identify 1 - 3 Profit Accelerators that
can be implemented in 90 days or less
that should increase your company’s
bankable profit by at least 2X your
current take-home pay
Double your take-home (or increase
it such that you can cover all your
personal obligations, save/invest at
least 15%, and still have some cash left
over to have a little fun)
Date Completed:
_____ / _____ / _____
LEVEL OF SCALE 4
If there’s one thing funded companies get
right, it’s this…
They ALL have Advisory Boards made up
of peers and mentors, and if you want to
build a truly scalable company, you’ll need
to do the same.
Let’s face it, entrepreneurship is lonely.
That’s why you need BOTH mentors to
give you fresh ideas and inspiration, and
peers to hold you accountable to your
goals, commiserate with you on the losses,
and celebrate with you on the wins.
But how do you
identify the right
board members,
and how do you compensate them
once you’ve found them? The key is
to find the right mentor, because the
right mentor will not only help you
build your board, they’ll serve on it as
well.
As a side note, if you need help
building your board, that’s one of the
services we provide at The Scalable
Company. I’ll talk about that more
at the end of this video, but for now,
let’s move on to Level 6…
THE KEY IS TO FIND
THE RIGHT MENTOR.
“
Once you’ve check all the boxes below,
you’re ready to move onto LEVEL 6.
Identify a worth mentor or mentorship
program
Identify 2 - 3 peers who could serve
on your advisory board
Identify 2 - 3 mentors who could serve
on your advisory board
[OPTIONAL] Apply for Founders
Board and shortcut all the above
Date Completed:
_____ / _____ / _____
LEVEL OF SCALE 5
All businesses eventually hit a growth
ceiling, and that’s why expansion
through acquisition is a necessary
tool in the scalable entrepreneur’s
toolbox.
At The Scalable Company, we focus
on acquiring assets and businesses
to provide more leads, add talent,
increase market share, add new sales,
widen profit margins, and amplify
total enterprise value.
It can seem a bit intimidating...even risky.
But the best part is, you don’t need to
raise capital or take on risky debt to close
your first deal. Our “EPIC” model makes
it possible to acquire business assets
(and even entire companies!) all while
minimizing the need for out-of-pocket
cash or personal credit.
So when you’re ready to shift into
acquisitions mode, just know that we can
help with that, too.
Ok, let’s wrap this up and talk next steps...
Once you’ve check all the boxes below,
you’re ready to move onto LEVEL 7.
Position yourself as an investor
Assemble your “Deal Team”
Determine and document your
acquisition criteria
Identify five (5) potential acquisition
targets (asset or company)
Complete target owner outreach and
data gathering
Close and integrate your first
expansion acquisition
Date Completed:
_____ / _____ / _____
LEVEL OF SCALE 6
You did it! You scaled a business to (at
least) 8-figures, and while you certainly
don’t have to sell your company, knowing
you could makes all the dierence.
At this level, you have what every
entrepreneur craves: OPTIONALITY!
(...which is a fancy way of saying you can
do whatever the heck you want to do.)
You could sell your business...or not sell
your business.
You could raise money...or not raise money.
You can completely step out of the day-to-day...or dive
back into the nitty-gritty and do only the work you truly
love doing.
The choice is yours.
This level is the most fun because you can start building
wealth on your terms.
But fair warning: Creating wealth and growing wealth
are two very dierent things, and history is littered with
entrepreneurs who went from rags to riches...back to
rags again.
BUT THAT WON’T BE YOUR STORY.
Your entrepreneurial journey is far from over. Now it’s
time to pivot from an entrepreneurial operator into
an entrepreneurial INVESTOR. It’s time to achieve
maximum impact and leave a legacy for those who
follow in your footsteps!
This is the dream of every entrepreneur, and at The
Scalable Company, our mission is to help you realize
your version of the entrepreneurial dream.
WE ACHIEVE OUR GREATEST IMPACT WHEN
YOU ACHIEVE YOURS.
Once you’ve check all the boxes below,
you’ve completed the 7 steps:
Build your Scalable Impact Plan
Clarify your “ideal exit” (see 5 types of
exit)
Define your “Everest Reward”
Hit your “number”
Celebrate your success
Date Completed:
_____ / _____ / _____
LEVEL OF SCALE 6
Before we wrap up, I just want to say that no
matter what level you're at, if you want help
breaking through to the next level, that's exactly
what we do at The Scalable Company.
OUR PROCESS IS SIMPLE…
First, we work with you to identify the level you’re
at right now. This isn’t always easy because most
entrepreneurs are spread out across multiple
levels, so we built an assessment that clarifies
your starting point. Because, let’s face it, it’s
impossible to get where you want to go if you
don’t know where you’re starting from.
Second, we build your “Scalable Impact
Plan.” This is where you get to define your
entrepreneurial dream and picture what life will
look like for you and the people around you when
you hit Level 7.
Once we’ve identified your current level and what
it looks like to hit Level 7, the next step is to chart
a path to reaching that goal in the next 24 - 36
months.
Once you know where you are, where you’re
going, and the steps you need to take to get
there, we’re simply going to ask if you want help
building and implementing your plan.
If you do, we’ll prescribe the next logical steps
and discuss what it would look like for us to work
together.
The recommendation could be to join our next
accelerator or go through one of our on-demand
trainings. It could be as big as applying for one of
our Advisory programs, or as small as reading a
selection of blog posts.
The point is, this is not a sales call. We’ll simply
make some recommendations based on your
specific needs, and the choice to take action will
be yours.
Either way, if you’ve read this far, I know you’ll
benefit from this first session, and the best part
is, it’s free.
All you need to do now is head to Scalable.co/
scale and fill out the brief assessment. This will
help our Scalable Advisors diagnose your current
level along with some constraints that are likely
holding you back.
Then, just pick a time that works for you, and
we’ll start the process of leveling up your
business.
Fill out that assessment now: Scalable.co/scale
