‘Very few businesses make it to £10m accidentally’
Hi,
Last week, I shared with you some valuable insights on successfully growing your business beyond £5 million, from Lyndon Stickley, Chief Executive Officer at iplicit – the award-winning accounting software that Insight Associates use for all our clients.
Lyndon, who has grown six businesses to that size ( including one sold for over £100 million), highlighted that the initial strategy that brings in £1-5 million in revenue is unlikely to work when scaling beyond that. You’re entering a much larger playing field, and your business must professionalise.
What does that entail?
One of the best ways to learn is through real-world examples. This week, Lyndon has kindly agreed to give you a behind-the-scenes look at iplicit’s journey, showcasing some of the challenges they’ve navigated as they scale. I hope you find it useful!
Now, over to Lyndon…
Thanks, Garry! Hello again,
As promised last week, I’d like to share some of the key changes we’ve implemented at iplicit as we work towards achieving £10 million in Annual Recurring Revenue (ARR). These include:
- Go-to-market strategy: How can we scale the delivery of our proposition without spiralling costs? For example, how can we grow our customer base efficiently, and will the existing model support exponential growth without overheads increasing at the same rate?
- Deployment, configuration, and training: We need to aggressively increase the number of software deployments while maintaining high quality. How much can we outsource to partners? What design improvements are necessary to make processes like data migration, configuration, and training more seamless?
- Technical support: Doubling the systems means doubling the support – or does it? How can Learning Management Tools aid both internal teams and clients? Where can AI reduce user errors and minimise support queries?
- Infrastructure challenges: With a growing team, we’re facing increased demand for an HR department, enhanced cyber security, and the introduction of quality standards across all departments. We also require independent accreditations and regular audits to maintain these standards. Roles that weren’t previously necessary, such as Project Managers, Information Officers, and IT support staff, are now essential.
- Cultural shift: We’ve had to transition from being sales- and marketing-centric – crucial for getting off the ground – to becoming a customer-centric organisation with tens of thousands of daily users to satisfy. This shift often requires different types of employees.
The culture shift doesn’t stop there; in technology start-ups, the very same people who code the solution are often designing, testing and launching it! As the organisation grows, it becomes vital to separate Innovation from Product, Engineering and Quality Assurance. - Regulatory compliance: Early adopters may prioritise the latest tech, but as time progresses, standards like ISO 27001, ISO 9002, and cyber security certifications become non-negotiable requirements.
Across all departments, the common theme is the need for systems and processes to ensure the business maintains high and consistent quality standards.
There are many other areas we’ve had to transform, including engineering, quality assurance, and finance. The key is recognising that evolving from a start-up to a scale-up requires as much energy and focus as the early days. It demands dedicated resources, and while some aspects can evolve alongside the day-to-day operations, many cannot.
New systems need to be implemented or upgraded – finance, CRM, CPQ, HR, DevOps, project management tools, and more. It may sound like a buzzword bingo, but each system requires meaningful investment and ownership to ensure a successful transition.
Businesses are started for various reasons – some by chance, others due to fortunate timing. But very few businesses grow to £10 million by accident. In fact, only 0.5% reach this milestone. This is because scaling requires a deep understanding of the need for comprehensive systems and processes.
Even fewer have a documented plan and dedicated resources to drive this transformation.
Now that you can see what’s required, good luck scaling your own business –
Lyndon
I hope you enjoyed this insightful example of the changes a business needs to make in order to grow beyond £5 million in turnover. It vividly illustrates the complexity of this evolution.
One crucial area that must professionalise during this transition is financial management.
I believe this process should start long before you hit £5 million. Finance is the lifeblood of your business, and you’ll need cash to implement the other changes Lyndon mentioned, like hiring new staff, upgrading equipment, and expanding premises. You also need a thorough understanding of your financial position to make informed decisions about where to invest and how soon.
Many of our clients find this necessary when they reach around £1 million in turnover. At this point, they often struggle if their finances are still managed on an ad-hoc basis. They also start to realise the importance of in-depth financial reporting that provides insights into their current position and future outlook.
That’s where we come in. Are you ready to find out more?
Alternatively, you can reach out directly by emailing garry@insightassociates.co.uk or calling us on 01279 647 447 to schedule a consultation. Let’s discuss how we can help you grow your business to £5 million, £10 million, and beyond with world-class financial management.
Warmly,
Garry
