You think you want to grow your business into the bigtime? Not all — or even most — businesses are structured in a way that will allow them to scale significantly.

During my 20-plus years in the Entrepreneurs’ Organization (EO), I’ve had the opportunity to engage with more than 200 entrepreneurs and their businesses.

Most of these companies generate around $1 million per year (the revenue qualification for EO), and the median revenue of all EO member businesses is $4.1 million. There is a small percentage that earn much more and whose company values would be north of $20 million if they sold. I call this group the “Bigtimers.”

That led me to ask: “Are all businesses capable of going bigtime?” I initially thought, “Yes. Why not?”

Then I learned the answer is definitely “No.” And there’s a sharp line between those businesses that can scale to that level and those that can’t. The answer is determined by whether your company has the three distinct factors necessary to go bigtime. These factors involve your setup, industry, location, business model, customers and every small decision you have made to create your current business to date. Let’s dive into the details.

The bigtime three

To go bigtime and build a company worth $20 million or more, there are three essential factors your business must have or be. When considering whether your company meets these standards, it’s crucial to be as honest and objective as possible. You might need to ask someone a little further removed (who’s not wearing your rose-colored, all-in glasses).

To find out if your business is set to go bigtime, answer these three questions:

1. Do you provide exceptional value that customers cannot readily get elsewhere?

Billionaire James Williamson was interviewed on his private jet. When asked how he became so rich, he didn’t hesitate: “Find a niche. Crush it. Deliver more value than anyone else.”

So ask yourself: Is anyone else doing what you are doing or offering what you are offering? If yes, how many others? In my experience, you can be one of three companies (but not more) offering what you offer.

And if you want to go bigtime, you need to provide three unique differentiators your company has that are better than what the other two players offer. You must also push harder for further differentiation all day, every day.

2. Is your business set up to scale?

To answer, yes, it must meet two criteria:

• Recurring purchases: Is your product one that customers need to buy repeatedly? To go bigtime, you can’t make an item customers buy once or twice in a lifetime; you must provide a product or service they buy monthly, annually or at least every two years. That scenario prevents the company from needing to reinvent the wheel for every customer and also continually attracts new customers. If you keep customers happy, they will stay, tell others — and help you grow.

• Wide appeal: My rule of thumb is that at least 25% of people or businesses must be able to benefit from your product or service. If it is less than that, your business can’t go bigtime.

One way to think of these two criteria is that there needs to be no (or a very low) supply of your product or service and a very high demand for it.

There are two rare exceptions. If you are the only provider of your product or service and get the word out to all possible customers (both of which are very hard to do), then it is possible to go bigtime with an item that customers buy once in a lifetime. I occasionally see examples on Shark Tank, when an entrepreneur with a unique, patented product gets support from the sharks to market and gain national distribution quickly. A good example of this is Tipsy Elves, which has sold millions of dollars’ worth of ugly holiday sweaters.

The other exception is a company that is the go-to, exclusive supplier of a widely used specialized product, such as gears in plywood-making equipment. These are the primary exceptions.

3. Are you exceedingly passionate about your idea and how it benefits the customer?

If not, don’t bother. Growing a business is like running a marathon at a sprint pace. If there’s not something in your core driving you forward, you won’t last or succeed.

What if the answer is no?

In interviews with five bigtime entrepreneurs, I found that all of their businesses met these three criteria with a resounding “yes.” If your honest answer to one or more of these questions is no, your business very likely can’t go bigtime.

So, what happens next if your business isn’t positioned for growth at scale? While bigtime founders might enjoy some fame and fortune, my experience is that there are also many serious downsides of explosively growing a company. Often you get there and you don’t like it there. It can take a toll on your psyche and health and often isn’t as fun. In fact, I’ve written an article on the benefits of staying small.

Bigtime or bust

However, if you are hell-bent on going bigtime and your current business doesn’t meet the three criteria, pivot to a product or service that does. Don’t be afraid to pair up with another entrepreneurial mind (or business) who’s already on a similar journey. Cofounding can be very powerful.

If your answer to all three questions is yes, then go for it!

In my experience, founders who go bigtime tend to exhibit five specific behaviors that empower their journey. These include thinking bigger, committing to a one-page strategic plan, hiring the right people in the right seats, creating crystal-clear branding and being fanatical about culture and customers. For more details about these behaviors, check out my previous article.