Am I Ready to Scale my Business?

Scaling a business is a dream for many entrepreneurs, but the question is often more complex than it first appears. Should you scale? Is your business ready for it? And what steps should you take to ensure that growth doesn’t end up overwhelming your company? In a recent discussion, Tanner O’Brien shared some essential insights into mastering business fundamentals before scaling—a critical step that too many business owners overlook.

First Things First: Are You Ready to Scale?

Tanner emphasizes that for early-stage entrepreneurs, scaling isn’t always the right move. He advises focusing on mastering the unscalable elements of the business first: “If you’re not measuring and managing the core aspects of your business to provide value to a single customer, it’s too soon to think about scaling.” In other words, establish profitability and consistency before you even consider what a scalable version of your business looks like.

Without a solid foundation, attempting to scale can lead to missteps, wasted resources, and possibly even failure. Build the nuts and bolts of your business first—then, once the fundamentals are stable, you’re in a better position to think about growth.

Understanding the Fundamentals of Business Mastery

According to Tanner, business mastery revolves around two core components: an investment thesis and resource allocation. These fundamentals can be broken down into four essential areas:

1. Destination: Define where the business is headed and set an investment thesis. This is your long-term vision and plan for growth.

2. Delivery: Identify what product or service you provide and ensure you’re consistently delivering value.

3. Time Allocation: Early on, time may be your most valuable asset. Focus on activities that aren’t yet scalable but are vital to learning about your market and building customer loyalty.

4. Financial Resources: Know how to allocate your money wisely. Prioritize spending that brings measurable returns rather than chasing trends or quick wins.

Mastery in these four areas will allow you to assess your business’s true position and readiness for growth. More importantly, it provides a framework to measure what’s working and where your resources—whether time, effort, or funds—are best directed.

Measurement: The Foundation for Growth

Tanner advocates for a simple but effective principle: “You can only move what you manage, and you can only manage what you measure.” If you want to grow your business, you need to start by measuring key aspects of it—your time allocation, resource investment, and customer feedback. Once you have these metrics in place, you can better understand how to improve them, which is crucial for sustained growth.

The Path to Scalable Growth: More, Better, New

Once your business fundamentals are sound, it’s time to think about growth strategically. Tanner introduces a powerful approach borrowed from Alex Hormozi: “More, Better, New.”

• More: Identify which marketing and sales channels are already working well, then do more of what’s yielding the best results.

• Better: Refine and optimize those channels, whether it’s enhancing your sales process, improving product quality, or tightening customer service.

• New: When you’ve maximized a channel’s potential, consider exploring new channels. This might mean moving from organic strategies to paid advertising, like YouTube or Facebook ads.

The Key to True Scale: Mastery, Management, and Adaptability

For Tanner, scalability isn’t just about expanding reach—it’s about building from a place of stability. By mastering the basics, focusing on high-impact channels, and using measured steps, you’ll reach a point where growth is sustainable and beneficial for your business.

In the end, scaling is a journey that requires both strategy and patience. The businesses that scale successfully are those that invest the time upfront to master their core processes and then grow from a solid foundation.