Many founders hit $3M in revenue and stall out. In this episode, Dan and Greg Crabtree break down why—and how to fix it. They discuss “profit truth”, how to spot financial red flags, and what metrics to track to scale beyond the messy middle.
Plus: we’re looking for listener stories. Have you implemented a system or framework that changed your business? Tell us about it. Your story could help 1,000s of entrepreneurs.
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Labor Efficiency Ratio Summary

CHAPTERS
(00:00:14) Introduction and the Death Zone
00:09:37) The Impact of Paying a Market-Based Wage
(00:11:03) Behavioral Economics and Profit Truth
(00:14:38) The Definition of a Fully Capitalized Business
(00:16:49) Transitioning through the Death Zone
(00:17:26) The Three Steps to Business Success
(00:18:51) Remaining Profitable in the Death Zone
(00:19:48) Different Capital Profiles and Cashflow
(00:21:04) The Emotional Challenge of Spending in the Death Zone
(00:24:03) The Executional Problem of Growth
(00:24:24) Getting Through the Black Hole
(00:27:02) The $3 Million Mark
(00:28:25) The Worth of Going Through the Zone
(00:31:32) Managing a Marketing Agency Past $5 Million
(00:36:26) Common Mistakes Made by Founders
(00:38:36) Understanding Profit Truth
(00:45:33) Investing in Finance and Accounting

CONNECT
Dan “at” tropicalmba dot com
Ian “at” tropicalmba dot com

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