How to Know If You’ve Outgrown Your Business Model
I’ve talked before about how I use a pretty liberal definition of “entrepreneur.” I think all business owners are entrepreneurs; you’re taking on the financial and reputational risk. You don’t need to be building a VC-backed business to qualify.
But many knowledge-service entrepreneurs (freelancers, consultants, solo agencies) get stuck when they think about growth. They plateau at “delivering the work” because that’s what their old career trained them to do. Or they don’t know how to expand. Or they’re not sure they even want to.
Before you start thinking about growth, it helps to understand different business models and think through the ones that aligns with your 10-year vision.
A lot of people end up trying to scale because that's what they feel like they should do, not because they want to.
In practice, most knowledge-based entrepreneurs end up operating in one of three models.
I’m focusing on service businesses here, but the same principles show up in product businesses (brick and mortar, physical products) too — it’s the same shift from creating one-off, high-quality items to building something that can run with more efficiency and scale.
The Craft Model
Here, you’re creating bespoke products or services. If you’re consulting or freelancing, every project is slightly different with a new scope, new deliverables, new thinking.
You’re essentially exchanging time for money. Your capacity is capped by the hours you can work and the only way to increase revenue is to raise your prices.
You stay here if you have strong demand and you can charge at the high end of your sector.
This is where a lot of coaches, therapists, and consultants get stuck. They want to earn more but can’t figure out how when they’re being paid for their time. They could raise their prices, but that conflicts with wanting to be accessible.
(And if you’ve worked with me, you know I don’t believe in hourly pricing — you price based on the product. But in this model, the “product” is still tied to your time.)
You move to this model when:
- You're still figuring out your offer.
- You enjoy bespoke work and want the simplicity of 1:1 delivery.
- You want low overhead and minimal complexity.
- You can charge a premium and demand is strong.
- You want flexibility while you build confidence and clarity.
You’ve outgrown this model if:
- You hit capacity quickly and evenings/weekends creep in.
- You’re rewriting proposals constantly and resenting it.
- You’re delivering the same outcome but customizing it every time, and annoyed about it.
- Revenue has plateaued even though inquiries haven’t.
- You want to earn more, and the only way you see to earn more is raising your prices again.
The System Model
This is where you have a few repeatable products that you don’t customize. You’re still the expert, but you’re no longer reinventing the wheel every time someone shows up.
Think roadmaps, audits, blueprints, signature workshops, frameworks, modules, defined-scope retainers.
You’re still selling expertise, but you’re selling it as a product, not a one-off craft piece. You build something once and deliver it many times.
Purpose-driven people often hesitate here because it can feel like “mass production” or like you need inauthentic marketing. Yes, you likely see that on Instagram with people selling downloadable products. But that's not what I'm talking about.
Simply, you have defined packages and processes so you’re not rethinking everything from scratch all the time.
This is usually the first big unlock for people coming from structured careers. You’ve been trained to customize, go deep, be thorough. But in business, constant customization is how many consultants accidentally end up back in a job.
The System Model gives you more leverage without hiring. And clients finally see a clear “thing” they’re buying — not just you.
You move to this model when:
- Clients keep asking for the same outcome, and it's a similar process.
- You want more predictable revenue and smoother delivery with systematized onboarding and deliverables.
- You’re tired of bespoke proposals.
- You want to work with more clients without burning out.
- You’re ready to package your expertise into clear offers.
You’ve outgrown this model if:
- You’re turning down good work because you’re out of time.
- Your process is so solid someone else could deliver parts of it.
- You’re drowning in admin, onboarding, or general ops.
- Bigger, more complex work is coming your way — and you can’t take it alone.
- The system is strong, but you are now the bottleneck.
The Collaborative Model
This is where you have support for all the things you don't want to do. You’re not the only person holding up the business. You can spend more time in the senior-level work you’re actually best at.
Maybe someone handles operations.
Maybe you co-facilitate workshops.
Maybe you bring in subcontractors.
Maybe you collaborate with another consultant for larger projects.
Maybe you hire a junior person to take on the pieces you don’t want to do anymore.
This is the point where costs go up, but revenue can too. You may need new systems (think cash-flow planning, onboarding, basic ops, training) things you didn’t need at earlier stages.
And depending on what you’re building, you may need expertise from the start. If you’re creating an app, a technical product, or something that requires design or development, those people aren’t “temporary support.” They’re core to the business and part of the operational backbone from day one.
You move to this model when:
- You’re booked out consistently.
- You’re saying no to work you’d actually like to take.
- You want bigger or more complex contracts.
- You want to maintain quality without burning out.
- You want to stop doing every function in the business.
- You want to build with others.
You’ve outgrown it if:
- You’re doing more management than expert-level work.
- Your support team is also at capacity.
- You need deeper or more specialized help than a VA/subcontractor can provide.
- You’re turning down opportunities because your current structure can’t support them.
- You’re ready for a more robust team or formal partnerships, not just “help.”
So… how do you know what you’re ready for?
The simplest version:
- If you’re still figuring out your offer → Craft is fine.
- If you’re delivering the same thing repeatedly → move to System.
- If demand is bigger than your time → move to Collaborative.
None of these models are “better.” They’re just different. Different people want different things from their work and life.
The mistake is assuming you have to stay in the Craft Model because that’s what your structured career taught you to do.
And honestly? Most people are more ready for the System Model than they think. They just haven’t been shown how to turn what they know into something repeatable.
Let me know what you think? What resonates? What should we think about differently?
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