Growth Tactics Newsletter #128

Small businesses run on tight margins. The last thing you need is an avoidable mistake that derails your growth. Yet, many businesses unknowingly set themselves up for risk.

If you’re making under $5 million a year, these four common mistakes could be holding you back, and they’re easier to fix than you think.

1. Relying too much on one person (Keyman risk)

Imagine your business without you. Would it survive? If the answer is no, you don’t own a business. You have a job.

Many small business owners are the central figure in their company. They handle marketing, sales, operations, and product development. The problem? If they get sick or take a break, everything falls apart.

How to fix it:

💡 Start by documenting your processes. What do you do daily that no one else knows how to do?

👥 Train a second-in-command. Even if you’re not ready to hire, begin delegating tasks.

💰 Automate or standardize anything repetitive—whether it’s customer service, lead finding, or invoicing.

Fact: Businesses with strong operational systems sell for up to 5x more than ones dependent on the owner.

2. Relying on one customer or channel for sales

If one client leaving would cripple your business, you don’t have a company. You have a dependency. The same goes for marketing: If all your leads come from one platform (like Facebook Ads or referrals), you’re one algorithm change away from disaster.

How to fix it:

🗂️ If a single customer accounts for more than 20% of revenue, diversify your client base ASAP.

📧 Use at least two customer acquisition methods (ads + organic, outbound + referrals, etc.).

📊 Build an email list. Unlike social media, you control your customer data and outreach.

3. Not having backup vendors or suppliers

Your business is only as strong as its weakest link. If you rely on one supplier, manufacturer, or service provider, you could be in trouble if they raise prices, experience delays, or shut down.

How to fix it:

🌊 Have a backup for any critical vendor. Even if you don’t actively use them, keep the relationship warm.

📜 Negotiate contracts with clear terms, including lead times and penalties for service failures.

🎯 Consider buying in bulk to reduce dependency on fluctuating costs.

Example: A coffee roastery lost 30% of its customers when a supplier ran out of beans. By diversifying sources, they prevented future disruptions.

4. Avoiding delegation (Instead of building a scalable system)

Many small business owners hesitate to delegate, thinking no one can do it as well as they can. But without delegation, growth is impossible.

How to fix it:

👉 Use the “Document, Demonstrate, Duplicate, Delegate” method:

1. Write down your process.

2. Show someone how to do it.

3. Let them do it while you watch.

4. Fully hand it over.

📌 Start with small, repetitive tasks (customer emails, bookkeeping, scheduling) before moving to bigger ones.

🤖 If hiring isn’t an option, automate: Use AI tools, chatbots, and CRMs to handle routine work.

Tip: Businesses that document processes grow 30% faster because they free up time for strategic work.

🔥 New brand shoutout

Fuchsia Shoes is a Seattle-based brand that offers handcrafted, artisan flats for women, blending traditional Pakistani craftsmanship with modern design. Founded in 2016, the company collaborates with skilled artisans from Sangla Hill, Pakistan, to create luxury ballet flats that are both elegant and comfortable. Each pair is meticulously crafted using locally sourced materials, ensuring durability and sustainability. Fuchsia Shoes is committed to ethical production practices, providing fair wages and empowering marginalized communities. Their collection features a variety of styles, including mules, loafers, and sneakers, catering to diverse tastes while maintaining a focus on quality and social responsibility.

🔥 Influencer shoutout

Refia Celik (@refiabella) is a model, artist, and photographer who blends art, fashion, and beauty with an elegant, timeless aesthetic. With 5,417 followers, her content feels like a mix of classical art and modern editorial, featuring refined outfits, artistic photography, and cinematic visuals. Her style is both sophisticated and effortless, making her a great fit for brands that value storytelling, aesthetics, and a cultured approach to influencer marketing.

See you next time!