Phase One: Growth by Addition
In most traditional businesses you get started and add one client at a time, one day at a time. No one knows who you are, so you have to establish a foothold in your niche.
In this growth phase your business is simple and easy to manage. It is also limited by the hours you can spend working every day. The hours you put in are much more than the profit you get out of the business.
Most self-employed people stay in this phase forever, earning a decent income, but they have to work 50-60 hours per week to maintain that level.
It’s very difficult to grow a business stuck in the addition phase if you also have a full time job.
Think realtor, plumber, corporate sales, etc.
When I was in sales 100% of my commissions came from my direct effort, but on the first day of the month I was always back to zero.
Phase Two: Growth by Multiplication
Balloon Distractions was in the Addition phase when I only had one team in Tampa back in 2004. When we started the Raleigh and Houston teams we were multiplying the Tampa business model.
My income went up, my time spent running my business stayed level.
To run a business in the Multiplication phase you need to become a student of leadership and systems, if you don’t understand basic leadership your growth in this phase will be limited.
Think realtor transitioning to real estate broker with 20 salespeople on the team, or a plumber starting a company and building a crew of plumbers.
If you work a full time job and your part time business can catapult to the Multiplication phase your business income will start to outpace your job income.
When you quit your job, and your business is growing via Multiplication you’ll have time AND your money.
Phase Three: Exponential Growth
This is the hardest phase to master, yet also the most lucrative. To get to Exponential growth your business has to have world class leadership training and proven systems that can duplicate your success anywhere and everywhere.
Companies that offer an internet based service tend to hit Exponential growth much faster than any other model. Instagram became a billion dollar business in 18 months, it took Wal-Mart almost 2 decades to reach the same point.
In order for a brick and mortar business to hit Exponential growth it has to be franchised globally.
Think Subway, McDonald’s and even 7-11.
The 7-11 chain has over 55,000 stores around the world, the highest number of franchise locations in the brick and mortar genre.
Can you own a business that grows exponentially?
One of the reasons I joined Life Leadership (LIFE) was to build a business that can easily go from Addition to Multiplication to Exponential growth without a large capital investment.
LIFE is internet/app based, with a product that will always be needed as long as human beings live imperfect lives.
My LIFE community was in the Addition phase for the first 12 months, recently it’s been starting to enter the Multiplication phase.
There will be a point in the near future when we go from adding 25 people per month to 25 new members per week, then each day, then each hour.
LIFE already has the systems in place to teach those new members leadership and how to grow a team, even when some of those folks might never meet me in person.
As I write this I’m 41 years old, I have time to grow my team to exponential growth, along with mentors who are willing to help me get there.
Check out this video, if you want to learn more reach out to me:
Benjamin T. Alexander