Nicolas Cole says every time revenue doubles, you're running a new business. Pause for three months to build processes and fix operational gaps instead of chasing the next double. Profit matters more than revenue, and you should take cash off the table to de-risk as you scale.
a really important lesson around scaling businesses, which is every time a business doubles, you have to recognize that it's no longer the same business. A business that's doing $20 grand a month and $40 grand a month are different businesses, and $40 and $80 are different businesses. And so every time you double— our mistake was we would double and then reinvest all the cash and then go, how do we double again faster? Instead, what you should do and what I've applied to all my businesses since then, every time you double, you should almost deliberately stop and go, I am now in an advantageous position and I should slow down and I should take 3 months and I should clean up all the things that I didn't have to clean up to get here, create the processes, almost like reestablish this new business that you have, and then go, okay, and how do I double again? The measure for success is not the revenue of the business. What matters is the profit. That's a hard lesson. And so like our agency's revenue was up and to the right, but our personal profit was flat and then down. And so every time you double, you need to ask yourself, how do I take some cash off the table? How do I de-risk myself, because if you go double again, your risk just doubled again.
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