One of the best parts of writing my weekly emails is the insightful replies I receive from readers—whether they’re adding perspective, sharing anecdotes, or even disagreeing with me. These conversations are always valuable.
So, it wasn’t surprising when I recently heard from Lyndon Stickley, the Chief Executive Officer at iplicit, the award-winning accounting software that both we and our clients rely on. Lyndon graciously shared his thoughts on the keys to scaling a business beyond £10 million.
There are few people who are more qualified to discuss this topic. Lyndon is a highly successful entrepreneur with a long track record of launching, growing, and selling innovative technology companies across various sectors.
In addition to growing iplicit to tens of thousands of monthly users, he has helped build six other businesses, each of which has been acquired—the largest for over £100 million.
When I asked Lyndon if I could share his insights with a broader audience, he was more than happy to oblige. This week, I’m excited to bring you his thoughts on the mindset shift that entrepreneurs must make as their company approaches the £5 million mark.
Next week, I’ll share the specific steps that iplicit is taking to reach £10 million in Annual Recurring Revenue (ARR). It’s a brilliant peek behind the scenes of a fast-growing company, so stay tuned!
Now, I’ll hand it over to Lyndon…
“Thanks for the introduction, Garry, and welcome to your readers.
Recent statistics show that only about 4-5% of start-ups reach the £1 million revenue threshold, and just a tenth of those make it to £10 million. While the numbers may vary across industries, the high failure rate of start-ups is undeniable.
So, is the journey of an entrepreneur brave or foolish? Or is it simply a calling—an itch that must be scratched?
For many, it’s a pipe dream that shouldn’t have been pursued. Yet, some battle through relentlessly and defy the odds. For a select few, it’s a formula. Those who understand and apply this formula are often among the minority who succeed, regardless of the sector.
This doesn’t mean that any business in any sector can succeed with a formula, but there is a clear process for selecting winners. It involves understanding how to evaluate the opportunity, defining the problem to be solved, identifying the audience, and creating the possibility for scale.
Start-ups that surpass £1 million in revenue have often harnessed several key factors:
- Identifying a problem that consumers are willing to pay to solve.
- Ensuring there are enough consumers to sustain a repeatable, growing business.
- Creating a profitable methodology to deliver that service to the target audience.
- Applying incredible amounts of dedication and hard work from the founding team.
- And yes, luck is nearly always a factor.
When you reach £1 million in turnover, you’ve likely discovered an initial business formula that works. Doubling down on that formula and doing ‘more of the same’ is often the key to the next phase of growth.
Lifestyle businesses often sit between £1 million and £5 million in revenue—big enough to be significant, small enough to manage in your own style. But as you approach £5 million, things get more complicated.
The very strategies that brought you success may start to become bottlenecks to the next stage of growth. When scaling becomes difficult, you may even find that you’re part of the problem.
The key is to change the way you think about your business. It’s no longer about ‘special people’; now it’s about ‘special systems and processes.’
Historically, your team may have been a concentrated group of talented and passionate individuals, including a founding team that leads by example. Mavericks are common in businesses under £5 million, going the extra mile, saving the day, and leveraging their experience to find answers. This is great for customer experience and personalised service.
However, to reach the £10 million mark and beyond, the organisation must evolve to compete in a much larger arena and you need to change your mindset.
You can no longer rely on exceptionally talented or quirky staff. The team must grow by onboarding more typical candidates who become exceptional through the systems and processes you’ve put in place.
It’s time to grow up and professionalise—from onboarding and training to continuous learning and development. And that’s just for staff!
All aspects of the business must undergo an overhaul to scale to £10 million and beyond.
This is where the savvy few recognise that there is a formula—it’s not about playing it by ear and reacting to needs as they arise. You need a calculated roadmap to define every step of the evolution your organisation requires to enter the next stage of growth.
And don’t forget that your typical customer’s expectations may change significantly as your organisation enters the mainstream market.
Innovators and early adopters are risk-takers and advocates. They tolerate a certain level of inconvenience with a new product or service. Your early fans often love what’s cool, new, different, and progressive.
However, this enthusiasm and tolerance may diminish as you move into the larger, mainstream market, targeting an early majority. These prospects expect far more and tolerate far less.
Lyndon”
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So what is this winning formula? Next week, I’ll reveal the exact steps Lyndon is taking to propel iplicit toward £10 million ARR. In the meantime, I hope you’ve enjoyed this insight into the mindset of such a successful entrepreneur.
As you may have noticed, Lyndon’s approach aligns closely with ours at Insight Associates. We specialise in helping companies make the transition to professionalism, systems, and processes to accelerate growth and maximise profitability.
While others can assist with transitions in customer service, HR, IT, and more, we focus on the financial realm. This is an essential part of the growth formula.
Mature companies have systems in place to ensure smooth, efficient financial operations—never ad hoc or reliant on just one or two individuals. They also produce timely, reliable financial data and reports, empowering you as the business owner to understand your company deeply and make better decisions for the future.
The good news is, we’re here to help you start that transition even before you hit £5 million. We typically work with companies that have passed the £1 million mark and already understand that to scale as Lyndon describes, they need to change their approach to managing their business—especially financially.
To learn more, simply email garry@insightassociates.co.uk or call our office at 01279 647447 to arrange a no-obligation consultation with me or one of our specialists.
Warmly,
Garry & Lyndon
