You want to grow your business? You’re in the right place.

But here’s the real question you should be asking yourself: How big do you want to grow your business? Be specific and consider the metrics. Do you want to do 10% better per year, or double every year for the next five years? 

Whatever your number is, growth typically doesn’t happen randomly. Owners make a plan, find the resources they need, and then hit benchmarks they’re aiming for. If you don’t understand the clear path from your starting point to your goal, growth can actually backfire and cost you profit, stability, and sleep.

That’s why this first lesson in the Growth 101 Bootcamp is all about getting real with your numbers. Start by digging up your past.

where is your business right now?

Before you can map out future growth, you need to know what’s already happened. Take an honest look at your historical financials:

• What has your top-line (revenue) growth looked like year-over-year?

• What about your bottom line (your profit or EBITDA)?

• Were there years where you plateaued or declined? Why?

• What patterns do you notice? Seasonality? Sudden dips or spikes?
  

You don’t need to be a financial expert to answer these. If you’ve had three years of 10% revenue growth followed by a 2% year, look into the factors that may have caused it. Was it market-driven? Operational? Personnel-related? 

Understanding your historical growth helps you forecast what’s realistic and what’s possible.

Knowing the competition

While knowing your numbers is a good start, it’s not enough to look inward solely at yourself or your company. You need to know how your business stacks up against others in your industry and region.

• Is your growth rate above, below, or on par with industry averages?

• What do healthy margins and growth trends look like for your peers?

• Are you seeing red flags, like stagnation in a growing market?

If you’re behind, it doesn’t mean you’ve failed. You’re here now and you’re learning. I will show you how to grow your business.

A bad year can alternatively prove to be an opportunity. The key is knowing why. Maybe your market is more saturated. Maybe you’ve underspent on marketing. Maybe you’ve got a killer product, but poor distribution.

Find the truth and use it to your advantage.

You don’t have to do this alone or guess at your numbers. Benchmarking data can be tricky to find if you don’t have specific experience in this field. Ask your CPA, valuation firm, or M&A advisor to help you gather this insight. It’s worth it. 

How will growth impact you in the short run

Something that I often see getting overlooked is how growth can impact cash flow. Growth isn't free. The question is how much money are we talking about? You can measure by identifying: 

• What’s your Customer Acquisition Cost (CAC)?

• How long does it take to close a sale?

• When do you get your first dollar in, and when do you break even on that CAC?

• What operational costs kick in as you scale? Will you need more staff, new systems, a bigger warehouse to continue to deliver the services and products you make money with, and still maintain a positive customer experience?

For example, if every new customer costs you $2,000 to acquire but only generates $1,500 in the first year… you’re bleeding cash in year one. If they stick around and you’re planning for a long-game payoff, then you may have one year where you lose a pile of cash, knowing that the next year will reap those rewards (if those customers stick around and you have no continued cost to acquire them, but still generate income).

You must know where the breaking points are and how to fund them intelligently before you pursue aggressive growth. If you’re scaling a loss (even if it becomes a long-term gain), negative cash flow can bleed you dry. 

If reading this makes you realize you don’t have the full picture, that’s okay. Most business owners are so focused on running the business, they don’t always see the full dashboard.

Here are some possible strategies to get a handle on your numbers:

• Hire a fractional CFO or accounting firm to analyze your financials.

• Use AI-based tools to generate real-time reporting dashboards (though it’s still good to double-check these with a professional).

• Partner with a valuation firm or investment bank to benchmark your business.

There’s no shame in calling in experts. In fact, that’s how most serious business owners increase their output without scaling how much time they invest.  

👉Find the right expert for your business 

In the next post, we’ll learn how to set realistic growth goals based on concrete evidence rather than your instincts alone.

For now, take 30 minutes this week to review your financials. Circle a few trends. Ask a few hard questions. It’s the best first step you can take toward sustainable, smart growth.