Ready, Fire, Aim

"Sometimes, you have to fire before you aim." Michael Masterson's unconventional approach shows that quick action and adapting along the way often trumps perfectionism in the world of entrepreneurs.

1. The Four Stages of Business Growth

Michael Masterson identifies four distinct stages every business progresses through: zero to $1 million, $1 million to $10 million, $10 million to $50 million, and $50 million to $100 million. Each stage brings unique challenges and demands different strategies. Understanding these stages can help entrepreneurs steer their businesses smoothly and effectively.

Many entrepreneurs get stuck because they don't recognize when the tactics that brought them success at one stage stop working at the next. Growth requires adopting new methods and leaving behind old habits. For example, a scrappy startup mindset might work in stage one but can hinder progress as you scale.

Masterson created a seminar after analyzing businesses across these growth stages and discovered that stagnation often occurs when founders fail to adapt to the specific demands of each stage. His advice offers a clear framework for overcoming these hurdles.

Examples

• Founders unable to evolve their strategies get trapped at lower revenue milestones.
• A business scaling to stage three needs systems while unstructured tactics create chaos.
• Recognizing the four stages helps leaders plan ahead for upcoming transitions.

2. Early Success Demands Speed, Not Perfection

In the first stage, the key goal is to get to market—fast. Masterson stresses the importance of launching a "good enough" product, rather than perfecting it. This is where the principle of “ready, fire, aim” plays a critical role. Early-stage businesses thrive by focusing on quick sales instead of wasting time fine-tuning every detail.

Many businesses fail before they even make their first dollar because of overplanning or obsessing over perfection. Instead, entrepreneurs should work on creating a minimum viable product (MVP) that solves a problem or meets a need. Getting something in front of customers allows an entrepreneur to refine based on real feedback.

Sales are the lifeblood of early growth. Without them, even the best idea will sink. By taking action before things are perfect, businesses create opportunities to test markets and pivot toward lasting success.

Examples

• Alex's $40,000 tuition payment raised through pixel ads demonstrates rapid execution.
• Entrepreneurs caught up in overengineering often miss the early market window.
• MVPs empower real-world feedback that drives the next step in product improvement.

3. Creativity Fuels Revenue from $1 Million to $10 Million

As a company surpasses $1 million, creativity becomes the driving force for growth. The key focus here is rapid innovation: brainstorming new offerings and acting on them quickly. Companies that stagnate at this stage often fail to expand their product lines.

Rapidly creating front-end and back-end offerings diversifies your income, minimizing overdependence on a single product. Speed is critical because markets evolve quickly, and opportunities can vanish equally fast. Masterson emphasizes tapping into the power of small brainstorming groups and acting on good ideas within 24 hours.

This stage also requires shifting the culture of the company to foster innovation. A team that embraces speed and ideation will more likely develop solutions and products that fuel consistent growth.

Examples

• Limiting brainstorming groups to 3-8 avoids inefficiency or inertia.
• Rapid launches help test offerings; slow launches risk missing the market demand.
• Expanding products ensures no single product represents the bulk of revenue.

4. Scaling Requires Systems, Not Just Hustle

When revenue approaches $10 million, businesses outgrow chaos. Processes begin breaking down, customers sense delays, and teams feel overstressed. Masterson recommends shifting focus from sheer hustle to scalable systems and procedures that support the growing business.

A strong operational structure is vital to sustainable growth. Founders should nurture early hires who can transition into leadership roles, ensuring smooth layers of management. Delegating responsibility to a COO or operations lead helps founders shift toward strategic, big-picture roles.

To weather stage three, founders must become more structured leaders. Success here involves standardizing internal processes, setting clear goals for teams, and growing through partnerships and deals rather than sheer workload.

Examples

• Broken customer service systems signal operational growth needs.
• A well-prepared COO allows founders to focus on vision rather than daily fixes.
• Formalized training ensures managers lead effectively across all teams.

5. From Founder to Visionary Leader

The evolution of a founder into a strategic leader starts around the $10 million mark. As businesses expand, the founder's role is less about hands-on efforts and more about guiding the mission. Masterson highlights the need for clear communication at all levels to align the organization with the founder’s vision.

In this stage, leaders must communicate their values, goals, and direction effectively. By sharing the bigger picture, founders inspire teams to work collaboratively and stay aligned with company objectives.

This strategic role also involves building relationships with partners or forming joint ventures that can open doors to new growth opportunities. Founders become the face of the company, driving influence and industry leadership.

Examples

• Clear communication reduces confusion and keeps teams aligned with company goals.
• Strategic partnerships provide access to new markets and additional resources for growth.
• Visionary oversight ensures every team’s efforts connect to the broader mission.

6. Strategic Delegation Is Key

Successfully navigating stage three requires delegating operational decision-making to trustworthy leaders. By doing this, founders can free themselves for strategic thinking and long-term planning. Masterson encourages founders to focus efforts on vision, branding, and partnerships.

Delegation isn't just about handing off tasks – it’s about empowering capable managers to lead with autonomy. Leaders who micromanage hinder growth and create bottlenecks. Managers who are trusted tend to perform better and make decisions that benefit the company.

This step also entails shifting from hiring doers to hiring decision-makers. Developing leadership abilities within your team ensures that the organization operates effectively without constant founder involvement.

Examples

• A skilled COO streamlines operations, enabling the founder to focus on expansion.
• Delegating key projects prevents founder burnout during rapid scaling.
• Growing internal leadership develops teams ready to handle increasing demands.

7. The $50 Million Milestone Brings New Decisions

Reaching $50 million in revenue opens doors to different opportunities for the founder and the business. From there, founders face a crucial decision: scale further, step back, or exit the business. Masterson outlines pathways that include selling privately, going public, or becoming chairman of the board.

If continued growth is the goal, then rediscovering entrepreneurial energy may be needed. The company must operate smoothly without the founder's daily input, positioning the founder as a guide rather than a hands-on leader.

This stage is about leveraging the company as an asset rather than just a revenue generator. Founders are encouraged to think like investors and explore what role they now want to play in the company’s future.

Examples

• Successful private sales provide both wealth and closure for seasoned founders.
• Public companies offer growth through expanded investment channels.
• Sharing executive responsibilities ensures longevity and independent operation.

8. Wealth Creation vs. Revenue Generation

Stage four shifts focus from generating revenue to creating wealth. Thinking as an investor, not just an entrepreneur, becomes critical. Masterson recommends actively steering the company toward long-term financial health and profitability while determining whether to sell or retain ownership.

Founders at this stage often serve as advisors, overseeing key decisions and guiding growth. They may also expand operations by reinvesting in acquisitions, strategically growing the company’s portfolio.

This mindset change allows founders to determine what lifestyle and role they want next. Whether they prefer active involvement or a passive advisory role, creating wealth opens up a wide range of possibilities.

Examples

• Retiring to focus on new ventures or hobbies becomes an option.
• Taking a business public creates liquidity and value for shareholders.
• Balancing growth with own personal goals becomes easier in this role.

9. Enjoying the Freedom of Choice

By accommodating change and embracing each phase of growth, entrepreneurs position themselves to dictate their own futures. Building a scalable and successful business opens up personal and professional choices that are often unattainable to others.

The freedom to decide whether to lead, sell, or step back is no small victory. It reflects intelligent decisions, adaptability, and leadership. At stage four, entrepreneurs can finally focus on what matters most in their lives.

By following Masterson's playbook, founders gain both financial success and personal agency, enjoying the fruits of long years of hard work.

Examples

• Entrepreneurs transitioning to consultants allow for a simpler lifestyle.
• Selling a thriving company funds personal passion projects or philanthropy efforts.
• Leadership transitions help successful founders secure a business legacy.

Takeaways

1. Adopt a "ready, fire, aim" mindset to avoid delays from over-preparation and act quickly on ideas.
2. Constantly innovate to diversify your offerings and maintain steady growth across every stage.
3. Shift from doing everything yourself to scaling through systems, hiring leaders, and delegating responsibilities.