The Revenue Roller Coaster:
Why 58% of Business Owners Struggle with Revenue Swings and How You Can Break the Cycle
Ever feel like you’re always working in your business, but growth isn’t happening as it should? Like sales aren’t steady? Like you don’t have the security you’ve worked so hard to build?
Like you’re at a loss about how to create the next win or reduce the variation and volatility in your profit?
You may have already built a 7-figure business that makes big sales and generates big opportunities…
Yet you still feel on edge.
If so, you’re not alone – and it isn’t a new trend.
According to data from a recent UBS survey, 58% of business owners report significant fluctuations in their monthly revenue.
You soar for one month. You plummet the next. Sales are unpredictable and you don’t know what to expect from one quarter to another. This is not a comfortable state to be in.
Why does this volatility happen? And what changes can you make to break free from this cycle?
The answer lies in your ability to diversify and systematize, while avoiding the most common cause of revenue swings.
Why Relying on Word-of-Mouth and Referrals are Risky (and Create Unpredictable Swings)
The most prevalent problem among companies experiencing these unpredictable swings is a dependence on word-of-mouth and referrals as the primary source of leads.
Sure, clients singing your praises to others is a positive sign. It shows you’ve built a strong reputation. Yet reputation alone rarely sustains a business or creates security.
Word-of-mouth and referrals limit your reach to only people who know what products or services you offer – resulting in most companies hitting a revenue ceiling between $1,000,000 and $3,000,000.
This puts you at a disadvantage to competitors investing in scalable marketing and advertising to capture leads.
Because you have no control over the pace and frequency of referrals, these issues are why relying on world-of-mouth and referrals almost always leads to a plateau in growth — and you feeling frustrated month after month.
But when you scale beyond word of mouth and referrals, growth becomes rapid and revenue volatility decreases. Take for example, a marketing agency who we helped grow from $950,000 a year to over $40million within six years.
When you diversify your lead-generation strategies, you create better balance with your inbound and outbound efforts.
Outbound (which involves several strategies) is among the most effective methods for filling the pipeline because you can proactively start conversations. With inbound, you’re always depending on existing customers to refer people they know or waiting for prospects to come to you… And there’s simply no perfect analysis predicting that frequency.
How CEOs Become Bottlenecks
As the president or CEO, you’re the linchpin of your company. But your involvement in every aspect of the organization is a mixed blessing that impacts profit, revenue, and valuation.
Your time and effectiveness are finite. When you juggle multiple roles, something has to give – especially as size (and revenue) increases.
You may believe you’re the best at doing many jobs within your company. Yet you need systems and processes with clear terms – that remove you from the equation – to continue to create new growth.
Ideally, you design these so anyone with a baseline level of skill can produce like a top performer (or at least at a consistent level).
You see, CEOs who fail to delegate effectively – or even identify what to delegate – often find themselves overwhelmed with tasks and decisions. This limits their capacity to focus on strategic matters and utilize their unique abilities as a leader.
If you don’t determine how to remove yourself from a percentage of of day-to-day operations, you’ll remain stuck in a cycle of “doing it all” year after year.
When you’re in this position, you feel increased stress and anxiety. You also have decreased motivation and teeter on the verge of burnout.
Can you relate?
Worse yet, poor delegation prevents employees from contributing their expertise and skills in support of your vision. Your employees may feel reluctant to take risks or propose new ideas if they fear micromanagement or excessive scrutiny.
However, when they feel empowered, you foster a sense of ownership and accountability that drives innovation.
And, better yet, create a self-growing organization that differs from the competition.
Finding Items to Delegate for Increased Profit
To create the most impact, leaders need help from staff in the form of delegation, and employees need the support of leadership in the form of clear processes, opportunities to take ownership of projects, and an understanding of the pivotal roles they play in the organization’s success.
Spend some time on this analysis, pay attention to the fine details, write down your ideas (including where your attempts may have fallen short in the past), and identify ways to delegate.
Take account of your products or services, how you spend an average day, the state of affairs across teams or departments, where you’re generating enough revenue and where you aren’t, how the current situation may affect your ability to delegate, and any other signs of bottlenecks…
Gather data diligently, then assemble the tools you need to follow through with the systems you need to build.
It will take some time and energy to perform this analysis, but these bottlenecks are opportunities in disguise. Investing your time in building systems is a matter of utmost importance – and stands to make the difference between revenue volatility and soaring beyond average quarter after quarter.
Delegate to Empower Your Team – Using KPIs and Other Indicators to Stay on Track
Delegation is a crucial skill for leading CEOs — one that allows the company to grow and profit even when you’re not spending time in the office.
To do this, you need to hire the right people, in the right seats, with the right set of expectations.
Top-performing teams become better when they set KPIs (Key Performance Indicators) that hold the team accountable – and reduce variation.
At Predictable Profits®, we structure the KPIs using the analogy A.I.M inspired by our friend Opher Brayer. A.I.M. is the method we use to identify a target that’s Achievable, one that’s Ideal, and another that’s Minimum.
Managed correctly, KPIs provide a structured approach to measuring and optimizing efforts that uses data and specific findings to keep everyone on track. It’s the only way to get a clear picture of whether your strategies are working.
You also ensure everyone works toward the same outcomes. Then, when your KPIs show consistent success, you can increase/expand your efforts to create more opportunity.
This, of course, assumes you’re using scalable sales and marketing strategies. Without them, your growth is destined to hit a plateau, cut off from achieving higher levels of revenue.
So what makes a strategy scaleable?
It’s one that can grow and adapt as your operation expands without adding excessive costs or resources. Scalability is crucial for growth because it allows you to handle increased levels of demand, reach a broader audience, and generate more revenue without straining your your bottom line.
The Roadmap to Predictable Profits
If you’ve read this far, you’re probably wondering how to implement these solutions effectively to not only put yourself back on the growth tracks, but keep you there – away from volatile weeks and months of unpredictable revenue.
Whether it’s diversifying your lead generation, mastering the art of delegation, or crafting a scalable strategy, the right guidance is important, especially when navigating the complexities of a 7- and 8-figure business.
This is why we’re giving you The Predictable Profits Playbook at no cost (just cover shipping and handling).
So you can get initial guidance and set yourself up for a quick win – or several!
You’ll discover the Predictable Profits® methodology that transforms your prospects into clients, reduces your dependency on key employees, and brings your business toward a state of self-sufficiency led by the example you build.
The Predictable Profits methodology is responsible for generating hundreds of millions of dollars in growth and helping our clients earn spots as one of America’s fastest-growing companies.
The system is designed to empower your teams and diversify your growth strategies, so you enjoy more predictable profits.
How much longer can you wait before your company reaches the revenue level you know is possible?
Don’t become another statistic. Grab a copy of The Predictable Profits Playbook today. Discover how expert guidance can transform your 7-figure business into a predictable, scalable revenue machine.
Your future self will thank you.
Click Here to Get Your Free Copy Of The Predictable Profits Playbook Today
