A short advisory monologue by Phil Risher on scaling a local business from $3M to $5M in annual revenue. The speaker argues that businesses optimized to operate at $3M need different systems to reach $5M, and suggests aiming for systems capable of handling even larger scale (e.g., $8M) to pull through the $5M threshold.
If you're at 3 million and you want to get to 5, just keep in mind you're the perfect 3 million dollar a year business. Your textbook, this is how to run a three million dollar a year business. What you're not is running a five million dollar business. And so we get stuck and you're like, last year we did 2.9, this year we're going to do 3.1. I'm not seeing the growth we used. What's going on? We're going sideways and worried that we're going down. Because you need $5 million systems to get there. Now I'm gonna mess with some people's brains. You to go from three to five, you don't need five million dollar systems. You need to jump to maybe eight. Because you got to pull yourself through the five million dollar mark.
