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Small businesses stay small either by choice, or because they start chasing growth in
the wrong places.
When you strip away the layers, it all comes down to darts.
Imagine a dart board with a bull’s eye and around it is a series of wider and wider
circles. The bull’s eye is where the people just like you hang out. They are the people
(or businesses) who feel the problem your company set out to solve. They are usually
your first customers and raving fans.
The further you go outside of your bull’s eye, the less these prospects feel your exact
pain.
Why do entrepreneurs go outside their bull’s eye? When you’re a self-funded start-up,
you’re scrambling — just trying to bootstrap your way to a company. You don’t have a
lot of money to invest in formal marketing, so you rely on word-of-mouth and referrals,
which also means you’re often talking to people outside of your bull’s eye.
These prospects may experience the problem you’re trying to solve, but they are
slightly different (that’s why they’re not in the bull’s eye). They like your product or
service but want a little tweak to it: a customization or a different version. You don’t see
the harm in making a change and start to adjust your offering to accommodate the
customers outside your bull’s eye.
Your new (slightly-outside-the-bull’s-eye) customer tells her friends about how great
you are, and how willing you are to listen to your customers, and she refers a prospect
even further outside your bull’s eye who again, asks you for another tweak.
Making these changes to your original product or service to accommodate customers
outside your bull’s eye seems innocent enough at the time, but eventually, it
undermines your growth.
Why?
To grow a business beyond your efforts, you need to hire employees (or build
technology) that can do the work. As humans, we are usually lousy at doing something
for the first time, but can master most things with enough repetition.
Think about teaching a toddler how to tie his shoes. The first few attempts are usually
rough. It’s a new skill and their tiny hands have never had to make bunny ears before.
You break it down for the child and show them how to master each step. It can take
weeks, but eventually they get it. As adults, we don’t even think about tying our shoes
— we’ve mastered the skill by repetition.
The same is true of your employees. They need time to truly master the delivery or
your product or service. Every time you make a tweak for a new customer outside your
bull’s eye, it’s like changing the instructions on tying your shoe laces. It’s disorienting for
everyone and leads to substandard products and services, which customers receive
and are less than enthusiastic about.
Having unhappy customers often leads the owner to step in and “fix” the problem.
While some founders can indeed create the customized product or service for their
new, outside-the-bull’s-eye customer, they are making their company reliant on them
in the process.
A business reliant on its founder will stall out at a handful of employees when the
founder runs out of hours in the day.
The secret to avoiding this plateau, and continuing to grow, is to be brutally disciplined
in only serving customers in your bull’s eye for much longer than it feels natural. When
you want to grow, the temptation is take whatever revenue you can, but the kind of
growth that comes from serving customers outside your bull’s eye can be a dead end.
Some people define insanity as “doing the same thing repeatedly and expecting different results.” Sadly, this is how many SaaS brands operate. ….read more
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The core way we help B2B SaaS leaders progress and achieve their goals.
Executive Navigation™ is based on experience, not just theory. It is successful entrepreneurs helping growing entrepreneurs scale their business from $1M – $10M+ in revenue.
Executive Navigation™ is designed to accelerate growth by flattening the learning curve. Want to learn more?
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