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Atlanta Business Chronicle Leadership Trust • A network of influential business leaders in your community

3 Questions to Help You Determine Whether Your Business Model is Capable of Going Bigtime

Three people standing in a grassy field, each holding a sign with a large question mark, facing forward.

The Business Journals Leadership Trust

By Barry Raber, Founder at Carefree RV Storage

Barry Raber, founder of Carefree RV Storage, is a member of the Entrepreneurs' Organization and an EO Portland's Entrepreneur of the Year.

Portrait of Barry Raber wearing a white shirt, smiling in an indoor setting.

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.

Follow me on Twitter or LinkedIn. Check out my website.

Barry Raber, is an Entrepreneurs’ Organization (EO) Member, CEO of Business Property Trust, a Portland, Oregon, company that owns and manages RV storage through Carefree Covered RV Storage and self-storage through Bargain Storage. He is also a thought leader who shares experiences for businesses at Real Simple Business.

FAQ: Can Your Business Model Go Bigtime?

What does it mean for a business to "go bigtime"?

Going bigtime means scaling your business to a company value of $20 million or more. According to entrepreneur Barry Raber, who has engaged with over 200 business owners through the Entrepreneurs' Organization (EO), only a small percentage of businesses are structurally capable of reaching this level. The difference comes down to whether your business model has three essential factors — not effort, luck, or timing alone.

Can any business become a scalable business model?

No. Not every business has a scalable business model and recognizing that early can save you years of misdirected effort. Barry Raber's research and experience show there is a clear line between businesses that can scale significantly and those that can't. That line is determined by your industry, setup, customer base, and the everyday decisions that have shaped your business to date.

What are the 3 questions to determine if your business model can scale?

The three key questions are:

Do you provide exceptional value that customers cannot readily get elsewhere? Your business should occupy a niche with no more than two other competitors, and you need at least three clear differentiators that set you apart.
Is your business set up to scale? This requires two things: recurring purchases (customers buy from you repeatedly — monthly, annually, or at least every two years) and wide appeal (at least 25% of the market can benefit from your product or service).
Are you exceedingly passionate about your idea and how it benefits the customer? Scaling a business is like running a marathon at a sprint pace. Without deep personal drive, most founders won't sustain the effort required.

What makes a business model truly scalable?

A scalable business model has two core traits: recurring revenue and broad market appeal. Recurring purchases mean you're not constantly chasing new customers from zero — existing customers keep coming back, refer others, and create compounding growth. Wide appeal (Raber's benchmark: at least 25% of people or businesses could use your product) ensures there's a large enough market to support significant growth.

How many competitors can you have and still build a scalable business?

According to Barry Raber, you can realistically be one of up to three companies offering what you offer and still go bigtime — but not more than three. If there are more than two direct competitors, your path to scaling narrows significantly. The key is having at least three strong differentiators that make your offering better than the alternatives.

What if my product is something customers only buy once?

There are two rare exceptions where a one-time-purchase product can still support a scalable business model:

You are the only provider of that product and can effectively reach all potential customers — which is extremely difficult to achieve.
You are the exclusive supplier of a widely used specialized product (for example, a patented component used across an entire industry).

Outside of these exceptions, a business built on one-time purchases will struggle to scale to bigtime.

Do I need passion to build a scalable business?

Yes — and it's non-negotiable. Raber calls passion one of the three essential factors for going bigtime. Growing a business to scale requires sustained, intense effort over years. If you aren't genuinely driven by both the idea and the value it delivers to customers, the grind will outlast your motivation. Passion isn't a soft bonus — it's a structural requirement.

What should I do if my business can't go bigtime?

If your honest answers to one or more of the three scaling questions is "no," you have two paths:

Embrace staying small. There are real advantages to running a smaller, profitable business — including more personal freedom, less stress, and often a better quality of life. Raber has written about the benefits of staying small as a legitimate and rewarding choice.
Pivot. If you're committed to going bigtime, pivot your product or service to one that meets all three criteria. Don't be afraid to co-found with another entrepreneur who's already on a similar path — Raber notes that cofounding can be a powerful accelerant.

What behaviors do bigtime founders share?

Raber identified five behaviors common among founders who successfully scale their businesses:

Thinking bigger — consistently raising the ceiling on what's possible
Committing to a one-page strategic plan — keeping focus sharp and direction clear
Hiring the right people in the right seats — building a team that can carry the growth
Creating crystal-clear branding — so customers immediately understand what you stand for
Being fanatical about culture and customers — protecting both as the company grows

Is it worth trying to scale my business if I'm not sure it qualifies?

Start with an honest self-assessment against the three questions. Raber advises getting input from someone outside your business — someone not wearing your "rose-colored glasses" — because founders naturally see their own businesses in the best light. If two of the three answers are no, the hard truth is that scaling will likely drain your time, energy, and resources without producing bigtime results. Knowing that early is an advantage, not a failure.