Jim Johnson says solopreneurs hit peak profit margins early, before scaling. As you grow, protect that profitability by staying obsessed with sales through phase two, even after hiring staff. Once you have enough work, buy back your time through delegation so you're not the bottleneck.
This is the highest profitability percentage your company will ever see. Regardless of your growth, you are more profitable now than you will ever be. And that's good. And it's important because we need to protect that profitability in order to move forward. Our primary objectives here are pretty straightforward. We need to generate the revenue that we can spend on our business. To move to phase three, we need to think about buying some of our time back. If you're at capacity and you have enough sales and enough jobs to keep you that busy, that means you're getting to the point where you have more time than you do money. This is a critical thing to keep in mind. So what do we need, what do we need at this phase in order to move towards phase three? Well, we need to stay focused on revenue generation. We absolutely must stay focused on revenue generation. That might seem like a no brainer, but at this phase, people will start to get desperate because of how much work they have and they'll start to move away from revenue generation. Especially if they've hired a salesperson and they think that person's going to produce like they did.
