5 proven principles...that you have to agree on is this: what got you here, won't get you...
TRANSCRIPT
1
5 PROVEN PRINCIPLES I Used To Super Scale My Business
To $30m
Alvin Poh
AT THE AGE OF 33, I SOLD MY INTERNET BUSINESS FOR $30 MILLION
This was the business that I scaled up from
$0 all the way to Singapore's #1 hosting
provider with 35,000 clients and a team of
150 before the 8-figure exit.
The way I do this is through my proven
methodology that consists of 5 proven
principles - the 5E Scale Engine.
I WASN’T BORN RICH
I was from a poor family I only had pocket
money for my bus rides and lunch in school.
I had to figure out entrepreneurship all from
scratch. I made tonnes of costly mistakes,
but eventually found 5 proven principles that
will allow a business to scale up.
That was the 5E Scale Engine.
4
I WENT TO TRAVEL, BUT MY PASSION IS IN SCALING BUSINESSES
After 2 decades of entrepreneurship, I still love
the joy of running businesses that provide
value to customers.
I want to teach others how to use the 5E Scale
Engine and scale their business like I did.
THE 5E SCALE ENGINE WILL BENEFIT YOU IF THESE DESCRIBE YOU
5/6/7-f igure business
Leverage on the Internet to sell/deliver
Open-minded
Obsessive and extreme
Believe in eff iciency
Committed
Willing to make sacrif ices
6
I CAN HELP YOU SCALE UP
If you are a 5/6/7-figure business owner and are looking to:
• Stop feeling lost in the jungle by having a clear direction to scale up
• Get a mob of raving customers who are crazy about your product/service
• Systemise your business so that you’re working on it, not working in it
• Hire and retain A-Players so that you can have a high-performing team
• Continuously meet and crush your business goals and targets
• Have a business that gives you freedom and profits
As you read this report, you might feel that the 5E Scale Engine makes sense
for you, At the end of this playbook, I’ll let you know how to contact me if
you’d like me to show you how to make use of the 5E Scale Engine effectively.
7
WHAT IS THE 5E SCALE ENGINE?
SCALING A BUSINESS IS VASTLY DIFFERENT FROM GROWING A BUSINESS.
When I first started my business, what was most important
was survival and immediate revenue.
This is the time when you have to be the scrappy
entrepreneur. Almost anything goes, as your foremost
concern is to survive tomorrow. Cash is king, and you do
whatever it takes for your business to survive.
8
When you get to 6-figure revenues and want to reach 7/8-figures, you
have to completely change your way of thinking. The mental models
that got you to 6-figures will not get you to 7/8-figures.
I took years before I fully grasped what was necessary for scaling a
company. It turns out to be something that I really enjoyed, because I
loved streamlining and systemising stuff.
And that’s what scaling up a business requires: systems and efficiency.
However, it isn’t just about creating systems. I realised that the
sequence that you do it matters as well. Which is why I have specific
pillars done in a specific order.
With all this knowledge, I created the 5E Scale Engine. It consists of 5
pillars: Evolve, Envision, Empower, Execute, Engage.
It’s a proven methodology to scale a business, covering everything
from mindset to the order of systems to create.
9
GROWTH VS SCALE
Do you know the difference between
growing and scaling?
It feels like it refers to the same thing -
increasing in size - but there’s a key
d i f fe re n ce b et we e n t h e m : t h e r a t i o
between revenue and expenses.
Growing has a tightly constrained ratio
between revenue and expenses. That means
as revenues rise, expenses rise in tandem.
10
GROWTH COMPANIES
That’s how you get really big companies doing $10m
in revenue but having $8m in expenses too, leaving
them with just $2m in gross profits.
In growth companies, revenue is a fancy metric,
because when you look at their bottom line, there is
comparatively little profit to show.
Scaling breaks this ratio between revenue and
expenses. With scale, you see an increase in
revenues but a much reduced increase in expenses,
if any.
11
SCALE COMPANIES
Another company who has also scaled up to $10m in
revenue might only have $4m in expenses. That
means the company has a gross profit of $6m.
In this example, both companies have revenues of
$10m, but their gross profits are vastly different. That’s
the difference between a business in growth mode
and a business in scale mode.
To be really free of your business so that you can be
working on it, instead of working in it, you have to be
focused on scaling up your business instead of
remaining stuck in growth mode.
12
EVOLVE
The first pillar is EVOLVE. The fundamental concept
that you have to agree on is this: What got you here,
won't get you there.
We have to analyse what you've done, throw away
limiting concepts that no longer work for you, and
introduce new ones that will work for you.
As the leader of your business, you need to grow if
you want your business to grow. Everything that
affects you on a personal level must be optimised so
that you can perform at your full potential.
Think about the drivers of racing cars or the jockeys
of racing horses. To be the winners in their races, it's
not just a matter of the fastest cars or the fastest
horses, isn't it?
13
THE MINDSET FOR SCALE
To get to and be running a 7/8-
figure business will require you to
update your mindset as well.
So make sure that it evolves,
otherwise you'll always be stuck
with a 5 or 6-figure business.
Besides you and your
business, you must also
control the environment that
you’re in.
Focus on your friends,
mentors, fitness, and health.
You are the average of your 5
closest friends. You need to
also start taking care of your
health and fitness.
It's like a driver of a race car,
or a jockey of a race horse. If
the driver or jockey is
overweight or unfit, they're
not going to win any races -
even if they have the fastest
car or horse.
14
When a flower doesn't bloom, you f ix the environment in which it grows, not the flower.
“- Alexander Den Heijer
15E N V I S I O N
The second component that forms the
foundation of the 5E Scale Engine is
ENVISION.
Entrepreneurs and business owners have
always been told that marketing is a cold
and ruthless game of numbers. The more
numbers you have, the better.
False! That’s not efficient.
16
THE POWER OF A VISION
Think about it: I can send you 100,000 visitors to your ice
cream business, but if they are all people who are lactose-
intolerant, you’re going to find that you’re not going to get
much, or any, sales
The power of ENVISION can connect you with people that love
your message and product/service, and how this will translate
into an insane level of results for your business.
You might even be surprised at how common business advice
doesn't necessarily work for you. Which is why I believe people
need the 4WH Business Model to structure their vision.
17
4-STAGE FUTURE
The next thing is the future YOU want.
As an entrepreneur, we have to visualise a future
that others cannot or will not. And this is crucial,
because if we do not have a strong idea of the
future, then any road will lead us there.
1. Short-term goal (3 months)
2. Mid-term goal (1 year)
3. Long-term goal (3 years)
4. Overall vision (7 years)
Each of these stages require you to strategise for
your desired outcome.
As such, you need a concrete vision for each
stage.
18
EMPOWER
The difference between a group and a team
might not seem big, but it can literally mean
the success or failure of your business.
This is what EMPOWER covers, because a
high-performing team can really empower
your business to achieve great heights.
A group is a collection of individuals with
their own agenda, whereas a team is a
collection of individuals with a shared
common purpose.
The goal is to build up a highly-effective
team, because then you can amplify your
personal efforts.
19
3 THINGS YOUR TEAM WANTS FROM YOU
Besides a fair and equitable salary commensurate to the value
that they bring to your business, there are only three things
that high-performers are looking for in their job: Meaning,
Autonomy, and Mastery.
Fulfilling all these three components will result in high job
satisfactions and subsequently, work performance.
However, to do this requires a lot of thought and planning.
You need to create a hiring system, which allows you to find,
retain, and grow A-players in your organisation. At Vodien, we
called it The Cycle of Good Work.
This not only allows for people to do good work, it also sets up
the organisation for success because it allows you to have a
culture of documentation and seeing work as processes.
20
C O M P A N Y C U L T U R E
Company culture is important because it’s an
extension of the CEO (who might be the founder).
Company culture is important because if it is
communicated well, it gives people an idea of
how to act and think.
A great company culture isn’t about free beer
and ping-pong tables.
A great company culture incorporates the core
values and vision that the founder has, and has a
supportive environment for people to do their
best work.
Conversely, if the company culture is toxic, or if
the CEO doesn’t know how to communicate well,
then the business will operate in chaos.
21
ENGAGE
ENGAGE is the next pillar of the 5E Scale Engine. We're talking about
engagement with your customers and clients here. With any successful
business, engagement is highly important.
Have you ever seen companies with great products that closed down?
A lot of entrepreneurs suffer from the "build it, and they will come"
syndrome. Unfortunately, it takes more than a great product to become a
successful business.
You'll need to plan out your customer journeys and ensure that you do
things in the right sequence in order to engage your customers properly.
Proper engagement is the difference between your customers raving about
your product, or nobody caring about you.
When you do engagement well, your product sells by itself because your
customers can't wait to tell their friends all about your product.
22
CUSTOMER JOURNEY
Any Customer Journey for any organisation is made up of 5 key stages:
Discovery, Consideration, Conversion, Fulfilment, Renewal.
Most entrepreneurs spend their time at the Discover stage. The typical thought
process is: “The more sales I get, the bigger I can grow my business”.
That may be true for businesses in growth mode, but absolutely false for
businesses in scale mode.
When scaling a business, the focus has to shift to a holistic view of the business,
instead of just increasing sales.
Otherwise, it’ll be akin to pouring more water into a leaky bucket. You can try to
pour as much water in as you can, but because you are leaking water out, you’ll
never be able to ever retain as much water as someone with a non-leaky bucket
of the same size.
To improve as a whole, you will need to ensure that all stages are performing
optimally. You will need to focus on all activities and processes that can increase
the key metrics of each stage.
23
EXECUTE
Only after you've worked on all 4 pillars can you move on to the final pillar,
which is EXECUTE.
One of the worst things that I hate is excess and inefficiency. That's why I've
been absolutely ruthless in my businesses to optimise, delegate, eliminate,
and automate processes whenever I can.
Focusing on increasing efficiency increases your business’s throughput and
productivity, allowing you to scale up because you now no longer have the
constraints that you used to have.
It's like a sprinter who weighs 30kg extra. I can give you the tools and
know-how so that your business can shed all this extra fat.
Immediately, you'll be unencumbered, and be able to train and perform at
your optimal levels.
This transforms your business from something you work in into something
you work on. Your business becomes a well-oiled machine, allowing you to
focus on strategy and growth.
24
ARSAD FUNNEL
The only way to improve things is by having
a systematic approach when you’re thinking
about how to increase business efficiency.
This was one of the more important
concepts that allowed me to transform and
scale up Vodien successfully.
I use the ARSAD funnel to create this hyper-
focus to increase business efficiency.
The ARSAD funnel has these 5 steps:
Analyse, Remove, Simplify, Automate,
Delegate
25
Most people don’t finish things, and that’s why success is tough.
If you’re reading this, you might have the qualities that can allow you
to Super Scale your business and finally obtain freedom and profits.
5/6/7-figure business
Leverage on the Internet to sell/deliver
Open-minded
Obsessive and extreme
Believe in efficiency
Committed
Willing to make sacrifices
GOOD WORK!
26
SUPER SCALING YOUR BUSINESS
The 5E Scale Engine is what I used to Super Scale my business
from $0 to $30m.
If you are a 5/6/7-figure business owner and are looking to:
Stop feeling lost in the jungle by having a clear direction to
scale up
Get a mob of raving customers who are crazy about your
product/service
Systemise your business so that you’re working on it, not
working in it
Hire and retain A-Players so that you can have a high-
performing team
Continuously meet and crush your business goals and targets
Have a business that gives you freedom and profits
Then you’ll benefit from my Super Scaling masterclass where I
teach you in detail how to apply the 5E Scale Engine to your own
business. Find out more here:
➡ AlvinPoh.com/masterclass