How to break the US$2 million annual revenue mark

In Australia, the United States and the United Kingdom, only around seven percent of all businesses ever reach US$1.5 million in annual revenue.
For most founders, hitting US$1 million feels like a win and it is. But pushing beyond that toward the US$2 million-plus range? That’s where the real challenge begins. The businesses that succeed beyond this point operate differently. Not just in strategy, but in how the founder thinks, leads and structures the organization.
As someone who has led companies through this transition and spent decades advising founders, I’ve seen the same patterns and behaviors play out. The reality is, the skills and decisions that get a business to US$1 million are not the same ones that take it to US$5 million, US$10 million or beyond. There are inflection points in business, and the US$1.5 million mark is one of the most critical.
Here’s why most businesses stall before reaching it – and what the seven percent are doing differently.
Breaking the invisible barriers
Founders in the low seven figures often find themselves stuck in a paradox, where more expansive thinking and experience could lift them out, but they can’t get there until they grow.
At this stage, many founders are still too embedded in daily operations such as overseeing sales, managing people, approving marketing and solving client issues. The business relies heavily on its energy, knowledge and decision-making. This is not sustainable long-term for the founder, and it makes the company vulnerable.
Worse, the structure around them often hasn’t evolved. They might have hired people, but roles are blurry, performance is inconsistent and the team still defers to the founder. In short, the business may be growing, but it can’t scale.

Once you reach the US$1 million mark, the game changes. Now it’s not about being the best at what you do, it’s about building a business that can do it without you.
Most founders are specialists – experts in their field who started a business to offer a better service or to have more control over their lives. In the early years, determination and optimism fuel growth.
But once you reach the US$1 million mark, the game changes.
Now it’s not about being the best at what you do, it’s about building a business that can do it without you. That huge shift requires a new skill set: delegation, team leadership, systems thinking, strategic decision-making and financial fluency.
The biggest barrier I see? Founders holding on too tightly to the things that made them successful early on, such as being across everything, doing things themselves and jumping in to fix issues. At some point, that becomes the bottleneck.
The seven percent eventually understand this. They evolve.
The make-or-break areas
Breaking past the US$1.5 million mark isn’t about pushing harder. It’s about addressing a handful of critical areas that either accelerate or stall your growth.
Structure and roles
At US$1 million to US$2 million, most businesses have outgrown their original structure.
Clarity around who does what and how it needs to be done is critical. Core processes across the business must be clear and visible and roles and accountability across all areas need to be specific and relevant.
Team capability
This is where most businesses trip up. The early team may not have the skills or mindset needed for the next stage of growth. Founders avoid hard conversations, hoping people will step up. Often, they don’t.
The seven percent are willing to make tough calls. They hire strategically, upgrade roles and invest in capability – even if that means change. They come to learn that having an A-team can change your business and your life.
Financial visibility
Many founders run on gut instinct more than numbers. At this level, that’s dangerous.
You need visibility over margins, ratios, cash flow and key metrics across all functional areas in the business. Decisions must be data-informed, not reactive. Founders in the seven percent either develop this capability in-house or outsource it, but they take control of the numbers.
Strategy and focus
As businesses grow, complexity creeps in: more services, more clients and more opportunities. Without a clear strategy, resources get diluted and execution suffers.
Successful founders learn to say no. They focus on profitable niches, optimize their delivery model and scale what works.
The founder-to-CEO transition
Perhaps the most fundamental shift is this: you must make the shift from founder to CEO.
It means letting go of tasks that belong with your team. It means thinking further ahead, building capability around you and owning the responsibility to lead.
This identity shift can be confronting. It means redefining your role, your value and how you show up in the business. Many founders struggle because no-one teaches them how to do this – and because stepping back feels like losing control.
The next level isn’t about working more – it’s about working differently.
But ironically, it’s the only way to gain control.
When you step up as CEO, you can set the vision, direct resources and lead the business with intention – not just react to whatever’s on fire today.
Breaking through the barriers to join the club
In The 7% Club, I explore these challenges and the journey beyond them. The businesses that break through into The 7% Club:
• Understand that success at the next level is about structure and strategy
• Build teams that free them to lead, not trap them in delivery
• Develop decision-making systems and use data to guide them
• Redefine their identity from business owner to business leader
And perhaps most importantly, they’re not afraid to change. They know that what got them here won’t get them there – and they act accordingly.
Thinking differently
If you’re hovering around US$1.5M and feeling stuck, you’re not alone. You’re at one of the most complex, resource-stretching phases of business growth.
But there is a choice. You can keep doing what you’ve always done and hope something shifts. Or you can start thinking like the seven percent: strategically, structurally and with a clear plan to lead your business forward.
Because the next level isn’t about working more – it’s about working differently.