The path to a multi-million dollar local business involves three steps. First, maximize your current location's capacity and marketing channels. Once that's capped, the real scale comes from duplicating the successful model in new locations, turning a small opportunity into a large one.
Many businesses reach a million in revenue through sheer effort but then stall. The shift to scaling requires achieving product-market fit, which creates leverage and pulls in customers, leading to exponential profitability instead of diminishing returns from just pushing harder.
When scaling a local service business like a chiropractic office, acquiring existing practices is a more efficient growth path than building new ones from scratch. It's often possible to find owners willing to sell for very little, making it easier to retrofit them into your model.
Niching down allows you to dominate a small pond with less competition, enabling higher prices and faster learning. Once you're the "biggest guy in a puddle," you use your acquired skills and resources to graduate to a pond, then a lake, and finally the ocean.
To scale effectively, resist complexity by using the 'Scaling Credo' framework. It mandates radical focus: pick one target market, one product, one customer acquisition channel, and one conversion tool. Stick to this combination for one full year before adding anything new.
Instead of creating a market expansion strategy from scratch, ServiceUp explicitly copied the playbook of DoorDash, a successful three-sided marketplace in an adjacent vertical. This involved entering a new city and simultaneously acquiring customers, suppliers (shops), and drivers, accelerating growth.
When expanding his law firm, John Morgan uses a 'bullets before bombs' strategy. He first enters a new city with a small, low-cost team and ad budget (the 'bullets') to test viability. Only after seeing positive traction does he commit significant capital and resources (the 'bombs'), de-risking growth.
The "SCALE and Credo" framework forces radical focus. Instead of diversifying, entrepreneurs should stick to a single target customer, offer, sales method, and marketing channel for a full year to build momentum and break through the initial revenue ceiling.
Spreading excellence should not be like applying a thin coat of peanut butter across the whole organization. Instead, create a deep "pocket" of excellence in one team or region, perfecting it there first. That expert group then leads the charge to replicate their success in the next pocket, creating a cascading and more robust rollout.
Seeing an existing successful business is validation, not a deterrent. By copying their current model, you start where they are today, bypassing their years of risky experimentation and learning. The market is large enough for multiple winners.
Danny Meyer advises entrepreneurs to resist the immediate urge to scale. He compares a business to a grapevine: the deeper the roots dig into a single market, the more strength the business will have. This period of focused growth builds a resilient foundation necessary for successful expansion later.