Business compounding is amazing.Â
There really is no mistaking that the incremental effect of consistently closing the week, closing the month, doing the right thing, having the hard conversations, front costing, back costing, quoting on time etc etc, can land you in a really healthy spot in 15 years.Â
If we start at $500k revenue and budget in conservative market averages (15% organic revenue growth, a market wage, business net profit of 20%) over 15 years your business will be doing an annual revenue of $3.5m and you would have accumulated nearly $7m dollars in personal + business profit.Â
If we start at $1.5m revenue and budget in conservative market averages (10% organic revenue growth, a market wage, business net profit of 20%) over 15 years your business will be doing an annual revenue of $5.6m and you would have accumulated nearly $11.5m dollars in personal + business profit.Â
If we start at $5m revenue and budget in conservative market averages (10% organic revenue growth, a market wage, business net profit of 20%) over 15 years your business will be doing an annual revenue of $19m and you would have accumulated nearly $34m dollars in personal + business profit.Â
Sometimes slow + steady really does win the race.Â
So what do you do from here?Â
Itâs time to embrace your trade god ordained destiny of making money, building wealth + being kind.Â
Get after it!Â
Much love,Â
Crowe xÂ
In this episode, Greg Crowe discusses crucial pitfalls that can hinder the long-term growth and success of your business. Whether you're a seasoned entrepreneur or just starting out, understanding and avoiding these common derailers can help you build sustained wealth and stability over decades.
Key topics:
- The importance of recognizing the power of business compounding and long-term planning
- The dangers of stray from what works and the value of consistent daily habits
- The significance of small gains and regular progress in business growth
- Why underestimating compound effects can severely limit your success
- The necessity of tracking actual business performance versus forecasts
- How to maintain long-term focus and avoid shortsighted decisions
- The role of clarity, discipline, and sticking to proven systems
- The impact of good customer relationships and reputation in scaling
- Building habits that do not crumble, but gradually crumble when neglected
- The importance of setting a realistic, long-term vision to inspire ongoing effort
Timestamps:Â
00:00 - Introduction: 10 ways you might unintentionally derail business compounding
00:29 - The benefits of slow and steady growth over 20 yearsÂ
00:58 - Differences between sprinters and marathon runners in businessÂ
01:28 - Building a business with a 15-20% organic growth rateÂ
02:27 - Why most entrepreneurs aim for long-term success, not quick winsÂ
02:55 - How to intentionally sabotage your business without realizingÂ
03:24 - Common bad decisions that accumulate over time 03:49 - Visualizing future success and long-term visionÂ
04:16 - The importance of stopping to assess your current positionÂ
04:40 - How ignoring the power of compounding stalls growthÂ
05:09 - The math of business growth with 15% year-on-year increaseÂ
05:33 - Managing operational costs to maximize net profitsÂ
05:58 - The impact of operational inefficiencies on profitÂ
06:24 - Conservative growth scenarios and staggering long-term wealthÂ
07:22 - The significance of customer relationships and reputationÂ
07:50 - Visualizing wealth accumulation over 15 yearsÂ
08:19 - Setting realistic growth expectations
08:48 - Why staying committed to habit and system consistency matters
09:18 - The value of close-out routines in daily business management
09:44 - The dangers of relying on forecasts over actual performance
10:14 - Embracing the long game, starting today
10:44 - The power of patience and incremental progress
11:14 - Building a referral-based, organic growth model
11:44 - The importance of small beginnings