According to the US Census, 85% of women entrepreneurs remain stuck at a low revenue level, earning $99,000 per year or below.
Only 15% ever crack the $100,000 mark. And, only 2% ever generate $1,000,000 and above.
According to the National Bureau of Economic Research, on average, the annual revenue reported by business owners of color is only one-third of the annual revenue reported by white business owners.
And an estimated 41% of Black-owned businesses, 32% of Latino-owned businesses, and 26% of Asian-owned businesses have closed since the pandemic, as compared to 17% of white-owned businesses.
LGBTQIA+ business owners are less likely to have access to venture capital and angel investment funds than straight business owners, according to a survey conducted by Chicago Booth Review and StartOut — and that disadvantage only widens for non-white and non-male LGBTQIA+ business owners.
Millions of women and other marginalized folks start their own businesses. But very few make decent money.
Let’s talk about why this is happening.
Is it because we’re lazy? Uh, no. Is it because we lack creativity? Nope. Is it because we’re just “bad with money”? Absolutely not.
I’ve spent over a decade working with women and other marginalized folks on their legal affairs, their intellectual property, their businesses, and their financial situations.
I’ve interacted with hundreds of clients and thousands of customers. And when you work with THAT many people, you start to notice some clear patterns.
This is what I have observed.
The main reasons why we get stuck and struggle to make more money are…
Systemic disparities in access to capital, mentorship, business education, and other entrepreneurial development opportunities, which contribute to…
Money mindset issues. (AKA, mind-trash — the imposter syndrome, the insecurities, the fears, the self-doubt.)
Not knowing which steps to take at which times, which leads to…
Lack of focus and feeling overwhelmed.
And, not having a clear path to follow to get from $0 to $1 million.
Those are the main reasons why women and other marginalized folks struggle to reach their full earning potential.
And because of all those reasons, I’ve seen brand new entrepreneurs spend hours fiddling with their website, instead of identifying and launching an offer that could actually generate revenue.
I’ve seen five-figure business owners flounder and flail as they say yes to everyone with a pulse and a wallet, when what they really need to do is focus on one main offer and one ideal client.
I’ve seen six-figure CEOs think they’re unicorns who will never let go of handling client delivery and sales, without realizing that they can and must trust their team to do what they were hired to do.
And I’ve seen seven-figure business founders let themselves get dragged back into day-to-day operations, when they should really be focused on systematizing everything possible so they can grow the vision of the company.
And this is exactly why my team and I created The Hello Seven Growth Scale™ — to provide a solution to those problems.
The Growth Scale™ is based on data compiled from the Internal Revenue Service and the U.S. Census, plus our own research working with thousands of business owners over the last 11 years.*
There are 7 levels on The Growth Scale™, and each one corresponds to a different revenue level, from 0 to $1 million+ per year.
What level are you currently at, and what does that mean for the future of your business? Read on to find out.
Folks in Hello One: Beginner have an annual revenue of $0 – $24,999. If you’re at this level, you’re holding yourself back with endless research and busy work, and you need to stop stalling and just launch your first offer into the marketplace and get those first few customers.
If you’re in Hello Two: Budding, then you have an annual revenue of $25,000 – $49,999. You keep comparing yourself to other entrepreneurs who seem more polished or impressive, when you should be focused on bringing more customers in the door.
Entrepreneurs in Hello Three: Busy Bee have an annual revenue of $50,000 – $99,999. You’ve got too much on your plate, and you need to stop offering 50 different things and just focus on one offer — AKA, do one thing and become the best at it.
At Hello Four: Breadwinner, you’ve got an annual revenue of $100,000 – $249,999. You’re holding your business back by trying to do everything yourself instead of hiring your first full-time team member, so you can step into your new role as CEO and team leader.
Business owners in Hello Five: Boss have an annual revenue of $250,000 – $499,999. At this point, you’re scared to hire more help, and you’re still holding on to too much work… even though, deep down, you know you need more employees, and that hiring and delegating is your path to growth.
If you’re in Hello Six: Badass, then you’ve got an annual revenue of $500,000 – $999,999. You need to stop getting in your employees’ way, allow them to thrive in their positions, build and refine your systems, and focus on building a business that can truly run without you.
And of course there are those in Hello Seven: Baller who have an annual revenue of $1,000,000 and up. This is the time to really step back from the day-to-day operations andcreate systems so that other people can make decisions, lead projects, serve customers, and get things done without your involvement.
Drop me a comment below with what level you’re at, and how you relate to the description above!
Every level is beautiful, and every level is challenging, so I encourage you to celebrate whatever level you’re at, and try to find gratitude throughout your business journey.
You can feel thankful for what you’ve got AND reach for more at the same time.
The goal of the Growth Scale™ is to break down scaling your business into manageable, easy-to-follow steps, and provide you with all the tools and resources you need to level up.
For example, here’s a sneak peak at the lessons that help our clients in Hello One graduate to Hello Two.
From creating systems to finding the right team members to getting your legal ducks in a row, our clients learn exactly what a sustainable business looks like at each revenue level, and how to build it out one step at a time.
The Growth Scale™ is the educational path that I wish existed back when I was building my first — and my second — company. It would have saved me so much time and drama!
Imagine what would be possible for you with complete clarity about how to grow your business. Imagine the generational wealth you could create. Imagine the legacy you could leave.
I can’t wait to see what you create.
Rachel Rodgers & The Hello Seven Team
*A note about language and statistics: We often use the terms “men” and “women” when we share financial data. This is because, unfortunately, there isn’t much data available on people who don’t fall into those gender categories…yet. The IRS and Census need to catch up with the reality of our world. As new data gets released, we look forward to bringing it to you. Folks who identify as non-binary, non-gendered, pangender, genderfluid, third-gender, two-spirit, or whatever identity is true for you, please know that you are welcome and beloved in this community.
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