The Small Business Black Holes with Alan Pentz The Revenue Breakthrough Blueprint: Scaling Past Common Growth Plateaus
Feb 11, 2025
47:04
In this episode of "The New Rules," host Alan Pentz shares his personal journey of growing Corner Alliance from a startup to a $35 million government consulting firm. Together with his interviewer, they:
• Explore the concept of "revenue black holes" - specific revenue levels where businesses tend to get stuck ($1M, $3-5M, $10-15M) and the unique challenges at each stage
• Delve into the evolution of an owner's role, from being "in" the business to working "on" the business, and how this transition is crucial for growth
• Examine the critical importance of hiring decisions and the need to become "ruthless" about making tough personnel changes as the company scales
• Discuss the transition from "heroics to process" and why systematic approaches must replace individual firefighting as organizations grow
• Consider the concept of "owner independence" and how it changes at different revenue levels, from basic administrative freedom to full strategic leadership
• Highlight the importance of building personal wealth alongside business growth using the "third, third, third" principle for sustainable business ownership
The episode provides practical insights for business owners facing growth challenges, emphasizing that "everything in a business is the owner's fault - they either hired it, did it, or allowed it to happen." Through his candid sharing of mistakes and lessons learned, Pentz offers a roadmap for owners to navigate their growth journey more intentionally and with fewer setbacks.
Highlights:
[00:01:55]: From Employee to Running a Business
• Explore the concept of "revenue black holes" - specific revenue levels where businesses tend to get stuck ($1M, $3-5M, $10-15M) and the unique challenges at each stage
• Delve into the evolution of an owner's role, from being "in" the business to working "on" the business, and how this transition is crucial for growth
• Examine the critical importance of hiring decisions and the need to become "ruthless" about making tough personnel changes as the company scales
• Discuss the transition from "heroics to process" and why systematic approaches must replace individual firefighting as organizations grow
• Consider the concept of "owner independence" and how it changes at different revenue levels, from basic administrative freedom to full strategic leadership
• Highlight the importance of building personal wealth alongside business growth using the "third, third, third" principle for sustainable business ownership
The episode provides practical insights for business owners facing growth challenges, emphasizing that "everything in a business is the owner's fault - they either hired it, did it, or allowed it to happen." Through his candid sharing of mistakes and lessons learned, Pentz offers a roadmap for owners to navigate their growth journey more intentionally and with fewer setbacks.
Highlights:
[00:01:55]: From Employee to Running a Business
[00:04:57]: Starting Corner Alliance in 2007
[00:07:38]: A Blackberry and a Business Plan
[00:11:39]: The First Million-Dollar Challenge
[00:14:26]: Peeling Away Administrative Tasks
[00:20:17]: Crisis at $4 Million Revenue
[00:24:26]: Working On vs. In the Business
[00:27:33]: Learning to Make Tough Decisions
[00:32:03]: Moving from Heroics to Process
[00:37:57]: Stepping Down as CEO
[00:42:11]: Finding the Right Leadership Level
[00:44:41]: Building a Board Structure
[00:46:05]: Balancing Growth and Wealth Building
[00:50:02]: Launching Owner Institute
[00:51:20]: Three Core Business Mistakes
Episode Resources:
Alan Pentz LinkedIn
Tonya Berenson LinkedIn
Episode Resources:
Alan Pentz LinkedIn
Tonya Berenson LinkedIn
Corner Alliance LinkedIn
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