Mike Andes warns entrepreneurs not to scale past $1 million annual revenue if they have off-season drops larger than 25-30%. He calls this "seasonitis" and says every month should hit at least 50% of your best month's revenue before you grow. Fix your leads problem first.
Anytime I see revenue going down, in this case by like 25-30%, that's a big indicator that we have a leads problem and usually an off-season problem, which we do. We are having this huge dip in leads dropping off a cliff and right now there is no income coming in. One of them is not taking any pay so that the other brother can pay the mortgage, which is super admirable. I'm glad they have savings, but that is not a long-term strategy to scale and I don't want to scale until I solve that problem. And so I would recommend for anyone, do not go past 7 figures in annual revenue or try to get to $1 million if your off-season has this problem where there's no revenue, it's hit or miss, you're losing money because ultimately to solve the off-season, if I have $100,000 a month, in my opinion, as we talk about inside the Off-Season book, I want every month of the year to have at least 50% of the revenue that I have in my best month. So if you do $100,000 a month, that means I want every other month of the year to have at least $50,000. In monthly revenue. If that's not happening, I consider that business sick with a disease I call seasonitis. And so to solve that problem is the biggest constraint for this business. And I want to do that before I scale it. Nail it, then you scale it.
