Serial entrepreneur Leo Landaverde has seen many businesses that never live up to their true potential. Landaverde said that there are 30 million businesses in the United States, but only a handful of them will ever hit $1 million in revenue. Today, Landaverde will share the five steps that entrepreneurs must take to scale up their business and reach that elusive eight-figure revenue.
Over the years, Landaverde has built and established several multi-million-dollar businesses, with one of these ventures generating $10 million in sales. Before working as an entrepreneur, he worked as a regional vice president for a staffing company for more than three years. During his time there, Landaverde helped the company double its revenue from $5 million to $10 million in just four years. But he was laid off after the company got merged with another company. “I saw one of the main shareholders walk away with $29 million in cash while I got nothing in my paycheck. That sight did not sit well with me. Out of anger, the very next day, I opened my first company,” he narrated. Landaverde has been profitable since day one and is posting a year on year growth of 50% for six years in a row.
In 2014, Landaverde founded his fourth company, called Greenland Advisory. The company provides clients with accounting support, financial analysis, and strategic advice to help them grow their businesses quickly. He revealed that they had helped many companies scale up with a client success rate of over 90%. “I want to share with fellow entrepreneurs the five steps that will allow them to hit $1 million in revenue in 12 months.
#1 – Mindset
Landaverde said that the first step is the mindset. An entrepreneur must first have the right frame of mind to grow a business. “The business magnate Henry Ford once said that you are right whether you think you can or cannot. That quote encapsulates the importance of mindset,” Landaverde said. He continued that we determine our own success or failure. If individuals think they can succeed, they will find a way to achieve the end goal. It all comes down to positive thinking and a mindset for growth.
“Only 9% out of the 30 million businesses in the country will hit $1 million in revenue. Many people cannot pass the seven-figure revenue because they do not believe that they can do it. Mindset is everything,” Landaverde said. He shared that one of the principles that he learned about mindset is having the drive to do something. Landaverde continued that like what Simon Sinek’s book said, an entrepreneur must start with “why.” He added that entrepreneurs must dig deep within to determine what compels them to get out of bed every morning.
#2 – Model
Next on Landeverde’s list is business model. “I always ask my clients what their money-making model is or how they make money. There is a high mortality rate in business because they do not know how to make money,” Landaverde said.
Landaverde shared that he dove into the numbers of his clients’ company to know it better. He usually requested his client to provide him with the company’s financial statements to understand the metrics that affect the company. “For example, when visiting a doctor, the staff will check vitals, such as tracking blood pressure, weight, and height. By the time the doctor meets with the patient, they will have an idea of what is wrong them,” he said. In the same manner, Landaverde checked his client’s metrics to diagnose the firm’s business health status.
#3 – Marketing
Another important consideration comes down to marketing. But, “you have to understand first the difference between sales and marketing,” Landaverde noted. He said that marketing means creating an environment wherein people will get interested in a product or service. Marketing is letting people know about a product and service and what they can do for them. On the other hand, sales refer to closing in the personal connection to get people to buy a product or service.
Landaverde said that entrepreneurs must raise awareness of their brands. “It is important to note that every branding has a message. And the message must be right so it will resonate with your target audience. It will make selling a product or service much easier,” he added. It is crucial to highlight what makes a product or service stand out among its competitors and its unique selling proposition.
#4 – Metrics
When it comes to metrics, Landaverde said that it has two components: the key performance indicators and financial statements. According to Landaverde, these two components are vital in measuring what matters in a business.
“For example, you are driving your car on the freeway, and suddenly, you lose your dashboard. How would you know how fast you are going without the dashboard? Would you know much fuel you still have? Similarly, in business, key performance indicators and the financial statements are the dashboards of a company,” Landaverde said. He remarked that key performance indicators and the financial statements allow him to build the dashboard for his clients. It is helping clients determine how they are driving their business to get to the next level.
#5 – Massive Action
Landaverde said that massive action is a final critical component. It is all about gaining momentum or adding fuel to the fire. Why is it vital? Now, every product and service is everywhere because of social media. “You need to attack your business with massive action. The marketplace now is huge. You must stand out in a marketplace full of competitors who are also offering the same type of product or services,” he urged.
Landaverde remarked that entrepreneurs must do much more than everybody else is doing to gain a head start among the competition. “If you do this, your competitors will have a hard time catching up with you,” he said. He then added that he usually asked his clients what they are practically doing to go after those sales and help them to scale it up by putting in more work.
That pretty much sums it all up – a sure-fire way to, as Landaverde put it, take your business to the next level and better your chances to obtain that sought after $1 million in revenue in the course of a year.