Short clip (YouTube) by Mike Andes introducing the ‘4L framework’ for business growth: growth stops due to one of four constraints—liquidity, leads, labor, or leadership. He explains the sequence for a home service business: need cash (liquidity) to buy advertising (leads), which generates customers requiring labor, and as labor scales you need leadership to run the business without the owner.
There's only four real reasons why your business stops growing, and I call it the 4L framework. It's either because of liquidity, leads, labor, or leadership. And when you first get your business started, you need liquidity, you need cash, and you turn that liquidity into leads. How? By advertising. And then once you get a bunch of leads, you get a bunch of customers, you already need labor. Because we're in the home service industry, we actually go do the work. And once you get a bunch of labors, you need leadership to be able to run the business and be able to run it when you're not even there.
