How to Build 3 Systems to Scale Revenue to $20M

Scaling a business from a modest start to significant revenue - say $20 million - requires more than hard work. It demands systems, precision, and a strategic approach. Ryan Deiss, a seasoned entrepreneur with experience scaling eight companies to eight-figures, outlines three transformative systems that can help businesses achieve this milestone while granting their founders greater freedom.

In this article, we’ll break down these systems, explain why they are critical, and provide actionable steps to implement them in your business. The ultimate goal? Achieving sustainable growth, consistent profitability, and the ability to step back from daily operations.

Why $2M-$10M Businesses Hit Growth Plateaus

If you’re a founder generating $500K to $10M in annual revenue, you’re likely familiar with the growth challenges that characterize this stage. You know you need a Chief Marketing Officer (CMO), Chief Financial Officer (CFO), and Chief Operating Officer (COO) to help scale. But the harsh reality is that hiring these roles - and the teams they require - can cost hundreds of thousands annually, which may be beyond your budget.

This is where systems come in. By implementing the right frameworks, you can replicate the functions of high-level executives without their price tag. These systems fill operational gaps, create structure, and enable growth even when resources are limited.

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The 3 Core Systems for Revenue Scale

1. The Growth Engine: Leveraged Sales

Every ambitious company needs consistent, predictable sales. But "leveraged sales" go beyond short-term wins. They ensure you don’t start each month at zero and establish repeatable, scalable revenue streams.

Steps to Build a Growth Engine

1. Visualize Your Sales Process: Map out how customers discover and purchase your product or service. Start with basic elements:
   • How are leads generated? (e.g., Facebook ads, referrals)
   • What happens after they engage? (e.g., landing pages, opt-ins)
   • What steps lead to conversion? (e.g., follow-ups, sales calls)
   Use sticky notes or a whiteboard to document each stage in the customer journey.
2. Create a Growth Scorecard: For every step in your sales funnel, identify measurable metrics (e.g., cost per click, lead conversion rates). These KPIs provide a clear picture of what’s working and highlight bottlenecks.
3. Optimize Continuously: Red metrics on your scorecard indicate areas that need improvement. Implement a 90-day plan to address these weak points, turning red into green.

The Impact

By visualizing and optimizing sales processes, you create a system for sustainable, leveraged growth. This ensures your sales engine doesn’t rely solely on you or one-off efforts, but instead runs efficiently on autopilot.

2. The Cash Flow Waterfall: Bankable Profit

Profitability is not just a number on a P&L statement. To truly scale, you need "bankable profit", which means actual cash in the bank that can be distributed, saved, or reinvested.

Why a Cash Flow Waterfall Matters

Even profitable businesses can struggle if they run out of cash. For example, P&Ls might reflect earnings, but delayed receivables or unplanned expenses can jeopardize operations. A cash flow waterfall ensures that money is intentionally allocated to cover taxes, emergencies, and distributions.

Creating Your Cash Flow Waterfall

1. Start with an Operating Account: This is the primary account where revenue is deposited.
2. Prioritize Tax Savings: Allocate funds to ensure you can always pay taxes. The government is the one "vendor" you can’t ignore.
3. Build Emergency Reserves: Set aside three months’ worth of fixed operating expenses.
4. Establish a Distribution Account: Surplus cash should flow here for stakeholder payouts. Distribute 80% quarterly, leaving 20% as a buffer.

The Philosophy

Distributing profit forces founders to treat their businesses as financial assets. If reinvestment is needed, it’s done more thoughtfully when stakeholders must pool their distributed earnings.

3. Scalable Operating System: Transferable Value

At the heart of every scalable business is its operating system. This is the "single source of truth" that documents how the company functions, how decisions are made, and how progress is tracked. Without it, founders remain the bottleneck, limiting growth.

Key Elements of a Scalable Operating System

1. Systemize Execution
   • Map out how your business creates value using a "value engine."
   • Identify three components:
     • Growth Engine: How you attract customers.
     • Fulfillment Engine: How you deliver products or services.
     • Innovation Engine: How you develop offerings.
2. Assign Accountability
   • Audit each step in the value engine and assign responsibilities to team members.
   • Eliminate founder-dependency by redistributing tasks and critical decisions.
3. Systemize Optimization
   • Create dashboards and scorecards to track metrics for every function.
   • Assign team members ownership of specific KPIs, ensuring accountability for outcomes.
4. Automate Decision-Making
   • Develop a "Clarity Compass" with your mission, core values, and long-term goals.
   • Use tools like quarterly scorecards to align team decisions with the company’s strategy.

The Ultimate Outcome

When your operating system runs independently of you, your business becomes scalable and exitable. Whether you aim to sell or step away from day-to-day management, this system ensures value is transferable.

Why These Systems Work Together

Each of these systems addresses a critical dimension of growth:

• Leveraged Sales (Growth Engine): Drives predictable revenue.
• Bankable Profit (Cash Flow Waterfall): Ensures financial health and flexibility.
• Transferable Value (Operating System): Creates a scalable, self-sufficient business.

By combining them, you unlock momentum, scalability, and optionality. In other words, your business becomes capable of growing without you being involved in every decision.

Key Takeaways

• Scaling requires systems, not just effort: Systems replace the high-cost roles you can’t yet afford.
• Map your customer journey: Visualize each step in your sales funnel to identify and resolve bottlenecks.
• Track metrics and optimize: Use scorecards to monitor KPIs and guide priorities.
• Protect cash flow: Allocate cash into separate accounts for taxes, emergencies, and stakeholder distributions.
• Build an operating system: Document how your business runs and assign accountability to create a self-sustaining organization.
• Aim for freedom: The goal is not just higher revenue, but the ability to step back and let your business thrive independently.

Final Thoughts

Scaling from $2M to $20M in revenue is no small feat, but it’s achievable with the right systems. By focusing on growth, profit, and operational scalability, you can create a business built for long-term success. Remember, businesses don’t grow by chance - they grow by design.

If you’re ready to take your business to the next level, start implementing these systems today. Focus on building them out step by step, and soon you’ll see the results: more revenue, more profit, and most importantly, more freedom.

Source: "The 3 Systems You Need to Scale to $20 Million" - Ryan Deiss, YouTube, Dec 15, 2025 - https://www.youtube.com/watch?v=dAL7v2y8BFQ

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