By: One World Publishing
Charles Gaudet, CEO of Predictable Profits, is recognized as an industry advisor to many premier executives. There is good reason for that, as Gaudet has been an advisor and coach to numerous companies and the premier executives that lead them. According to client reports, his coaching has reportedly contributed to measurable client growth.
We connected with Gaudet to explore what makes a company scalable, whether any company can build a scalable model, and the key elements of building that growth.
For an entrepreneur with a business that has some traction but isn’t growing rapidly, how do you know if your business model is scalable?
Charles Gaudet: Scalability is about how effectively your business can grow. It’s not just about increasing sales or revenue but doing so in a way that doesn’t require a proportional resource increase. A scalable business is one where costs, time, and effort don’t rise at the same rate as customers or clients are added.
There are a few general indicators that can tell you if your business model is scalable:
- Systems vs. People: Can your current operations run without you? A scalable business relies on frameworks and processes, not just people. If your business depends on you or a key team member to function, that’s a sign your model may need further development.
- Cost Structure: Take a close look at your cost structure. If your costs increase significantly with each new customer, that’s a concern. Scalable businesses often experience economies of scale, meaning their costs per customer or unit go down as they grow.
- Demand Creation and Capture: Another critical factor (part of The Predictable Profits Operating System) is how well you generate and capture demand. Are you just waiting for leads, or are you actively creating demand in your market? Scalable businesses rely on organic growth and have systems to consistently create, capture, and nurture demand.
- Data-Driven Decisions: Scalable businesses typically rely on data to make decisions. If you’re making decisions based solely on instinct, you might limit your growth potential. Integrating data intelligence into your strategies will provide insights to potentially scale effectively.
What mindsets hold most founders back from reaching the 8 figure level?
CG: After recording over 250 episodes of The Beyond 7-Figures Podcast, it appears that some founders encounter challenges around the 7-figure mark due to certain mindsets that may limit further growth to the 8-figure level.
The most common mental roadblocks are:
1. The “Do-It-All” Mindset: Many founders believe they must control every aspect of their business. When wearing multiple hats, this mindset works well in the early stages, but it’s a massive bottleneck when scaling. At 8 figures, you need to move from being a business operator to being a business owner. That means delegating responsibilities and trusting your team to execute.
2. Fear of Letting Go of Control: Founders often have difficulty trusting others with key business decisions, fearing that no one will care as much as they do. While this is understandable, it’s self-sabotaging.
3. Short-Term Focus: Many founders are so caught up in meeting short-term goals—like hitting the next revenue target or closing the next deal—that they lose sight of the long-term vision. This short-term thinking limits strategic planning and may prevent you from building the systems necessary for sustained growth.
4. The “More Revenue = Success” Mindset: Many founders equate success solely with revenue growth. While revenue is important, focusing only on top-line growth without considering profitability, operational efficiency, and scalability may lead to chaos.
5. Fear of Investing in Growth: Many founders hesitate to invest in the necessary resources—hiring key team members, investing in new technology, or expanding marketing efforts—because they fear short-term costs outweigh the benefits.
6. Not Understanding the Importance of Data: At the 7-figure level, some founders still make decisions based on gut instinct or anecdotal evidence. While this may work early, it may become a liability as your business grows.
The journey from 7 to 8 figures is often more about mindset than tactics.
Founders who are willing to let go of control, invest in their team, think long-term, and embrace data-driven decision-making are the ones who potentially break through to the next level.
Remember, the strategies that got you to 7 figures won’t get you to 8. You must evolve your mindset, systems, and leadership to scale to the next level.
Your business is only as strong as your mindset. So, if you’re ready to scale to 8 figures, it’s time to shift your thinking and embrace a new level of growth.
Can all founders become good CEOs? What does it take?
CG: This is an excellent question that many founders eventually face as their companies grow.
Founders are typically visionaries, risk-takers, and problem-solvers. They turn an idea into reality and navigate a startup’s early chaos.
However, as a business scales, the role of a founder evolves.
The qualities that made you a great founder—innovation, hustle, hands-on involvement—aren’t necessarily the same traits that make a successful CEO.
To become a great CEO, a founder must move from the doer to the strategist and leader. This transition involves building a team, creating systems, and focusing on long-term growth.
While it isn’t easy, those who embrace it can lead their companies to new heights.
Remember, the journey from founder to CEO is one critical transition you’ll make in your entrepreneurial career.
Approach it with a learning and growth mindset, and you’ll set yourself and your business up for long-term success.
What soft skills do entrepreneurs need to develop to be effective as a leader and a visionary?
CG: Entrepreneurs must develop soft skills beyond technical knowledge and hard skills to be effective leaders and visionaries.
These skills are critical for fostering team dynamics, creating a strong culture, and making informed, strategic decisions that drive the business forward.
Here’s what entrepreneurs need to focus on:
1. Emotional Intelligence: Emotional intelligence is the ability to understand and manage one’s emotions and recognize and influence the emotions of others. It’s a crucial skill for leaders because it helps them build stronger relationships, manage stress, and make better decisions.
2. Effective Communication: Communication is the lifeblood of leadership. Being able to clearly articulate your vision, expectations, and feedback is key to aligning your team and driving performance.
3. Empathy: Empathy is imagining yourself in someone else’s shoes and understanding their perspective. It’s closely tied to emotional intelligence but deserves its mention because it is important for building trust and loyalty within your team.
4. Adaptability: The business landscape is constantly changing, and as a visionary, you must adapt to new challenges and opportunities. This requires a flexible mindset and a willingness to pivot when necessary.
5.Decision-Making: As a leader, your ability to make informed, timely decisions is paramount. This often involves balancing short-term needs with long-term vision and sometimes making tough calls that may not be popular.
Are there rituals or protocols you believe CEOs should follow every day to work on themselves as effectively as they work on their business?
CG: Absolutely! The rituals we practice daily as CEOs are more than just routines—they are the foundation for making great decisions.
Our effectiveness as leaders is directly proportional to our ability to make high-quality decisions. That means our minds and bodies must be primed to handle the unique challenges of leadership: managing stress, maintaining energy levels, and keeping a clear mind amidst chaos.
Every little advantage we accumulate in our daily practices has a compounding effect.
Whether we set our intentions through morning reflection, exercise to boost our energy, or end-of-day planning to ensure continuous improvement, these rituals serve as the mental and physical fuel necessary to thrive in the high-pressure environment of running a business.
At Predictable Profits, we support CEOs of 7- and 8-figure companies in integrating elements of the Predictable Profits Operating System into their business strategies. This approach highlights the value of personal development alongside business growth.
Through business coaching, we assist leaders in refining these rituals to enhance their effectiveness, aligning them with strategies, tactics, and systems that support business growth and personal development as leaders.
Great leaders build great businesses and are forged through intentional self-improvement.
Disclaimer: Results vary based on individual business circumstances and market conditions. This informational article provides guidance and frameworks to support growth but does not guarantee specific financial outcomes.
Published by: Josh Tatunay
