The Hidden Dangers of Chasing Revenue Before Improving Business Operations

Those 5-figure months are great, but there’s this nagging feeling that your business could fall apart at any moment. 

I see this all the time. In fact, it was a recent discovery call with a potential client that made me want to actually put pen to paper (or finger to keyboard in the digital world) and share my thoughts on this. 

This entrepreneur was killing it with her sales, but during our chat, it became crystal clear that she needed to improve business operations if she wanted to unlock even greater success.

This is a common trap for founder-led businesses. The thrill of increasing revenue often blindsides us to the importance of solid operations. We get so caught up in the chase for more sales that we overlook the cracks forming in our business foundations. Without robust operations, your business is like a high-speed train with faulty brakes – it’s only a matter of time before things go off the rails.

So in this blog, I’ll explain why shoring up your online business operations before chasing more revenue is crucial for sustainable growth. Believe me, your future self will thank you for it.

The Revenue Growth Trap

If you’re in the same kinda position as this potential client, you’re probably thinking…

… “Boosting revenue is my top priority.”

… “I’ll fix the operational issues once I’ve boosted my income a bit more,”

And I get it, if you’re hitting 5-figure months it’s easy to get caught up in the chase (this is coming from someone who’s in the same revenue category). 

The business owner I had the call with has the same thoughts, and despite her impressive corporate background and a solid understanding of the importance of operations, she viewed them as a secondary concern. 

Sound familiar?

This is a common scenario for scaling business owners. It’s tempting to focus solely on revenue growth, especially when you’re already doing well. However, this approach can lead to significant issues down the line. 

During our chat, I highlighted a critical gap in her strategy. Without strong operations, the surge in orders and customer interactions she was aiming for could overwhelm her current processes. This could lead to delays, errors, and a decline in customer satisfaction – all things that could ultimately damage her business reputation and long-term growth.

Importance of Improving Business Operations First

If you want to scale successfully and sustainably, you need to prioritise your operations first. 

This is how I like to explain it to people… “Scaling your business is like building a house. Revenue growth is like adding more floors to your building. But if your foundations (aka the operations) are weak, the entire structure is at risk of collapsing.”

Pushing for more sales without having the operational backbone to support it can lead to several serious issues, such as:

1. Bottlenecks: Your current processes might be just fine for your existing workload, but what happens when your volume doubles or even triples? Without scaling your operations to match, you’re asking for trouble. Expect delays, errors, and a decline in customer satisfaction – all things that can quickly tarnish your reputation.

2. Errors: As your business grows, managing everything manually or with inadequate systems increases the likelihood of mistakes. Think missed invoices, unsigned contracts, and a generally poor client experience. These errors can lead to unhappy clients and lost revenue, which can seriously hamper your growth (the complete opposite of what you’re trying to achieve).

3. Burnout: When you’re spinning all the plates yourself or with a small team, the added pressure of increased sales can lead to burnout. Without clearly defined tasks and processes, your team members can end up confused and inefficient. This not only affects your business’s efficiency but also your sanity and the overall morale of your team.

Establishing A Strong Foundation

Okay, so I think you get the picture of why strong online business operations are critical! So let’s delve into what back-office operations really entail and why they are the backbone of your business. 

Back-office operations encompass all the administrative and support functions that keep your business running smoothly. These are the unseen gears that ensure everything ticks along nicely, enabling you to focus on growth and strategy.

I’m going to tell you the same thing that I told that driven entrepreneur during our chat… 

… If you want to scale your business without everything falling apart, these are the three operational areas you need to focus on:

1. Automate Routine Tasks

Things like invoicing, payroll, and customer management are ripe for automation! Doing so will not only free up time, but also reduce errors and speed things up. This allows you and your team to focus on more strategic activities that drive growth. Automation tools handle these tasks with precision and efficiency, making sure that nothing slips through the cracks.

One of my FAVEEEE automation and CRM tools is Dubsado. I’ve used it in my own business for years and have implemented it for many of our clients. I honestly don’t know what I’d do without it. If you wanna check it out, I have an exclusive 20% off discount you can use. And… if you need some help setting it up, we also offer customer Dubsado builds.

2. Standardise Processes (SOPs)

You know you need them, but you’re probably still keeping all that valuable information and knowledge in your head. SOPs are essential for maintaining consistency and quality across your business. 

By developing and documenting these processes, you create a blueprint that ensures every task is completed to the same high standard. This makes onboarding new team members sooooo much easier, scaling operations smoother, and maintaining service quality much simpler.

SOPs and automations go hand in hand, and I’ve gone a lot deeper on this in my blog “why systematising your business will help you scale in the long run”.

3. Invest in Training

Keeping your team (if you don’t have a team, this applies to you as well) well-trained on the latest systems and processes is crucial. Regular training sessions ensure that everyone knows their roles and can efficiently handle their responsibilities. This not only improves productivity but also boosts team morale and cohesion. 

Well-trained team members are more confident and capable, which in turn leads to better overall performance.

This is What Happens When You Focus on Improving Business Operations…

Just so you know I do more than just talk the talk, I wanted to share a real-life example of how prioritising operations can actually help you hit and achieve your revenue goals. 

The Challenge

Our client was a motivated business owner, just like you, hitting impressive revenue targets but struggling with the inefficiencies of a manual client management system. She wanted to scale but knew her current operations wouldn’t support the growth.

The Solution

We implemented an automated CRM system that revolutionised her online business operations. 

Here’s how we did it:

• We got her onboarded and set up on the same day. No waiting around – we literally jumped straight into action.

• In just 60 minutes, we completed a system-build strategy session, mapping out the entire process to ensure everything was covered.

• We streamlined her service offer, making it clearer and more attractive to potential clients.

• We built out a seamless client experience, ensuring every interaction was smooth and professional.

• We mapped out exactly what we needed from the client ASAP, eliminating any guesswork or delays.

• We provided strategic insight for the launch and marketing, ensuring her efforts were focused and effective.

The Result

Within just three weeks, our client onboarded 10x new clients bringing in an extra 5 figures into her business. She was blown away by the personalised, high-level client experience that the automated system facilitated. Her clients were thrilled, and her business was running smoother than ever.

Let’s Improve Those Business Operations (Together)!

If you’re serious about scaling your business and hitting those ambitious revenue targets, it’s time to take a hard look at your operations. The thrill of increasing sales is undeniable, but without a solid operational foundation, that growth can quickly become unsustainable.

The story of the entrepreneur I spoke with is a perfect example. She was killing it with her sales, pulling in 5 figures and already had one team member, so she was in a real sweet spot to scale her operations before her revenue growth could outpace her capacity. Yet, her lack of robust operations was holding her back from even greater success. By focusing on automating routine tasks, standardising processes, investing in training, improving the client experience, and fostering scalable growth, she would be able to transform her business and achieve her revenue goals even quicker!

Remember, prioritising your operations isn’t just about getting organised – it’s about setting yourself up for real, tangible growth. You need a foundation strong enough to support your ambitious goals. So before you chase that next revenue milestone, make sure your operations are ready to support it. Your future self – and your clients – will thank you for it.

If you found yourself nodding along to this, recognising some of these challenges in your own business, let’s chat about how we can transform your online business operations and set you up for sustainable growth. Book a call today, and let’s build a solid foundation for your business growth together.

For more insights on preparing your business for growth, read if you’re thinking about hiring for your business, here’s what you need to do first.