Published: August 3, 2025
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Only 6% of Americans own a business. And of that, less than 1% ever hit $1,000,000 in revenue. After investing in businesses for 15 years, here are three reasons why 99% of businesses never scale past 7-figures:

1. Organizational Challenges There are a ton of sub-catagories here but today we’re going to unpack “Executive Vision.” Most owners think their problems stem from poor strategy, when it’s typically poor execution. You can have the best plan in the world, but if your team can’t

You need to have a clear vision that every person in your business believes in and wants to fight for. The best CEOs think in years, then translate this vision in plain english to their team. Make it stupid simple: everybody needs to know where the biz is going, what their

Image in tweet by Codie Sanchez

When done right, it creates a flywheel: • Executive vision gets translated into specific quarterly goals • Goals become daily/weekly metrics on dashboards • Dashboards drive structured team communication • Communication reinforces the culture you're building

(…which makes scaling almost inevitable). When you nail this sequence, your team starts executing your vision without you having to micromanage every decision.

2. Finances & Future Casting The worst thing you can do is manage your business like a personal checking account. Sadly, that’s what 99% of owners do. They look at what's in the bank today and make decisions based on that number. There’s a reason why that never ends well…

Because revenue is vanity and cash flow is sanity. That’s not just to make a cute rhyme. If your business lost all revenue tomorrow, how long would you survive? You need to know this number. That’s why we tell all our owners to have a rolling 90-day view of expected cash

Image in tweet by Codie Sanchez

With this data, you know: • When to hire • When to invest • When to hold back on a big purchase Scaling a business is hard enough, keep a little sanity in your life by keeping a pulse on collections, obligations, and cash reserves.

3. Avatar Defintion When owners say people can’t afford their product… 99% of the time, it's not a pricing problem. It's an avatar problem. Most businesses chase anyone with a pulse and a credit card. As a result, they end up selling snow to Eskimos instead of hot chocolate

Compare that with owners who get obsessed with ONE specific customer type. And I’m not just talking about demographics…I mean knowing their pain points, what podcast they listen to, where they go on vacation… I have yet to find a business that can’t scale to $10M focusing on

Image in tweet by Codie Sanchez

And if you have no idea who your avatar is: Open up your P&L and calculate your most profitable customer using this formula. Revenue ÷ Input (Input = project duration + operational complexity + labor costs + … ) Remember, the most profitable customer is not necessarily the

Here’s a quick example of how we helped an owner re-define his avatar… For some context, his biz had two customers #1 Commercial Landscaping March - Recurring revenue, $120k/year annual contract, $1k to acquire #2 Residential Sarah- Recurring revenue, $2k per year, 80% of

Image in tweet by Codie Sanchez

At face value, his thinking made sense: - It costs more to acquire Marcus - And only makes up 20% of biz revenue But when we compared the numbers in detail, it was clear that his commerical biz should actually be his MAIN focus, look:

Image in tweet by Codie Sanchez

Commerical had 211x higher lifetime value than residential customers. So here’s what we decided on: 70-80% focus on commercial acquisition and 20-30% on residential diversification. The result? 45% revenue increase in 2 months.

Image in tweet by Codie Sanchez

To be clear, this sounds conceptually simple but still requires a ton of work. This owner and his team executed quickly and effectively to scale and sustain that growth. Serious props to them.

If any of these problems sound familiar and you’d like one of our consultant to take a peek and see if we can help you. Feel free to find a time below to chat to one of us. We’d love to see how we can help to scale your biz: http://contrarianthinking.biz/...

@Codie_Sanchez Owner of Landscape business for growth and cash flow only . Margins are higher on high end residential service contracts . There are other issues too long to list . If you want scale fast commercial is the way to go but margins are lower . You better have and keep your contacts

@Codie_Sanchez Reason 1: The founder stays stuck in the business, not on it. Reason 2: No repeatable systems = chaos at scale. Reason 3: They try to do it all alone—no team, no delegation, no growth. Scaling requires unlearning.

@Codie_Sanchez The regulatory environment makes it hard to be successful. Every corner of state and local government has its hand out and wants to control your business.

@Codie_Sanchez When we figure out our business priorities, it becomes simpler. 1. Remaining cash flow positive at all times. Finding another perennial source when the flow is lumpy. 2. Maintaining a stable credit. 3. Bringing in the revenues consistently through diverse clientele while

@Codie_Sanchez Looks like the path to seven figures is a bit like a unicorn sighting rare and magical but oh so worth chasing for those who dare to dream big

@Codie_Sanchez Only 6% but every corner you turn around online is business 👩‍💼

@Codie_Sanchez Financial education is more important than ever ‼️‼️‼️‼️‼️‼️‼️‼️‼️‼️

@Codie_Sanchez Interesting! In Nigeria about 30% identify as entrepreneurs (own a business) and 84% are self employed (working independently)

@Codie_Sanchez Those stats are powerful. The leap from 6 to 7 figures is where operational complexity shatters businesses that run on hustle instead of systems. Keen to read your take.

@Codie_Sanchez This is like a masterclass by teaching people what to avoid so that they can scale their business.

@Codie_Sanchez Is this a real stat? Just hit $1,000,000 year one on the new business, and it doesn’t seem like I’m in a minority.

@Codie_Sanchez One might also consider the (regulatory, legal liability) costs associated with hiring as meaningful barriers to family business expansion.

@Codie_Sanchez Business ownership would grow if we stopped sending all of our youth to college for 5 years instead of teaching them marketable skills. They leave with debt and little real world experience, then have to spend their 20s clawing out of it and building real skills.

@Codie_Sanchez The owner makes the business about them, not the employees The owner does not have good systems in place The owner does not have good marketing

@Codie_Sanchez My local service company hit 1,000,000+💰 gross revenue when I was 22. I had 0 investors, 0 real capital, 10+ employees and started it all from my car in highschool. At the time, I was grinding my face off 24 hours a day / 7 days a week, that I didnt realize how rare that

@Codie_Sanchez So good and so true !

@Codie_Sanchez That’s a wild stat, and honestly, scaling past the million mark takes a way different mindset and playbook than just getting off the ground.

@Codie_Sanchez And fewer survive. That’s why we build for the long game.

@Codie_Sanchez Looking forward to that wisdom drop, scaling secrets always worth the wait.

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