7 Levels of Scale: Hitting Your Entrepreneurial Number

When you’ve taken your business through all 7 Levels of Scale, it’s time to live your very best Level 7 life.

 

In previous episodes, co-hosts Roland Frasier and Ryan Deiss walked us through the first 6 levels of their proven and powerful framework, The 7 Levels of Scale. In today’s episode, they’re discussing Level 7, Hit Your Number. This concept is near and dear to their hearts, so much so that they created a whole company, a whole book, a whole movement around these 7 Levels of Scale. And Level 7? Is the absolute most fun of all.

 

First make sure you’re all caught up on Levels 1-6:

 

Level #1: Sell and serve 10 customers.Level #2: Build a growth flywheel.Level #3: Build an upgraded scalable operating system.Level #4: Double your take-home pay.Level #5: Build your advisory board.Level #6: Complete an acquisition for expansion.Level #7: Hit your number.

 

 

 

Then listen in to hear all about the fun, freedom, and opportunities that await you in Level 7.

 

What Is Your Number?

 

When Roland and Ryan are talking to new clients about the 7 Levels of Scale, one of the pre-steps is to have them answer this question: What is your number?

 

There are actually two numbers at play here. First, you’ve got your personal number. What number do I need to hit to feel like I’ve “made it?” Then there’s the number for your business. Your personal number for your desired ultimate wealth is completely different from what you’re likely to get this business to do. It’s important to have an understanding of both.

 

For the context of the 7 levels, what’s that number for your business where you’ve maxed it out to its optimal level?

 

Breaking Your Business Number Into 3 Numbers

 

Roland and Ryan have their clients think in terms of three-year planning cycles. Three years is a sweet spot—long enough to do something truly meaningful, but short enough to be somewhat predictable and tangible. Over the next three years, what do you want your numbers to be in each of these three key areas?

 

Top line salesBottom line profitEnterprise value

 

All of those numbers are very figure-out-able, and Roland and Ryan expertly walk clients through each one. Obviously, that third number is a function of the other two. They call it going top to bottom. If you can take today’s top line revenue, and in three years from now, that’s actually your profit, then your company’s value can go through the roof.

 

3 Levels of Impact

 

After you figure out what you want your top line sales, bottom line profit, and enterprise value to be after three years, the next area you’ll look at is impact. What impact do you want your business to have on your personal life? On the lives of your family and inner circle? And on the world at large? You can divide it into 3 spheres of impact:

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As you think through each sphere, get really specific about what you want. Do you want to send your kids to college debt-free? Do you want to buy a house for a parent? Do you want an annual European vacation with your partner? Do you want to write a check to a charity for a million dollars?

 

As far as your impact on the world at large, this idea is front and center in the world right now. Companies are being asked to take a stand socially for what’s right. There’s a whole movement called ESG...