186: The 3-Step Process to Profitably Scaling Your Business

Too many established ecommerce stores run out of money before they can scale.

Over the last several years, I’ve helped 126 ecommerce brands build more profitable businesses. 78 of them scaled into 7-figure businesses. 2 them had $100 million dollar exits.

Through this experience, I’ve learned that if you observe certain principles as you scale, you’ll increase your chance of doing it profitably.

Today I share my 3-step formula for profitably scaling your ecommerce business. Enjoy!

Episode Highlights:

• 4:10 The two conversations Austin had with clients that inspired this episode.
• 5:55 Strategy #1 for profitably scaling: Mindset.
• 6:20 Understanding your business’ DNA to get into the right mindset for growth.
• 9:40 The tough choices you have to make when you commit to growing profitably.
• 11:15 Strategy #2 for profitably scaling: Money.
• 11:32 How to calculate and set a profitability goal for your business.
• 14:17 Most business owners are paying themselves to little. Here’s how to calculate a fair wage for yourself.
• 17:31 Figuring out how much money you need to have in your business to be fully capitalized.
• 19:40 Is now the right time to hire? How to calculate how much you can spend on salaries based on your profitability goals.
• 24:29 The three financial components on your business to focus on after setting your salary cap.
• 25:57 Strategy #3 for profitably scaling: Method.
• 26:54 The biggest levers to focus on to grow a more profitable business.
• 34:33 Increasing average order value with "priority processing."

Links and Resources:

• Episode 178: You’re Treating Your Customers Equally (And It’s Costing You Money)
• Brand Growth Experts
• Foxwell Digital

Become a Member

If you liked this episode, you're going to love the Brand Growth Experts Membership.  It’s a community of top ecommerce business owners and marketers who I coach one-on-one to help scale up their businesses. Together we’ll create a plan that will help you scale up your business, and then I’ll help you execute it.

If you want to make sure you’re growing as quickly and sustainably as possible, click here to learn more. Hope to see you on the inside!

Sponsor: Klaviyo

Today’s episode is brought to you by Klaviyo. Over 10,000 brands have joined Klaviyo to help them build higher-quality relationships with their customers. Klaviyo does not force you to compromise between speed and powerful functionality, you get both. Interested to see Klaviyo’s impact? Tune into their 12-part docu-series following three brands—Chubbies, SunSki and the Love Is Project. You’ll learn how they prepared for Cyber Weekend 2018, marketing throughout the holidays, and beyond. Along the way, we’ll fill you in on what you should be doing as a business to push your marketing strategy to the next level.

Also, as you're going through this, they're going to show you how to prepare the business to continue to take it to the next level segment and grow and use it to use Klaviyo to drive more profitable interactions. If you want to go check out this docu-series, go to www.ecommerceinfluence.com/beyond.