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	<title>Scaling business Archives - Tomco Capital - Coaching, Advisory &amp; Investments</title>
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		<title>Why I Don’t Chase Scale Anymore</title>
		<link>https://tomcocapital.com/why-i-dont-chase-scale-anymore/</link>
		
		<dc:creator><![CDATA[Thomas Michael]]></dc:creator>
		<pubDate>Thu, 23 Apr 2026 15:27:34 +0000</pubDate>
				<category><![CDATA[Culture]]></category>
		<category><![CDATA[For CEOs]]></category>
		<category><![CDATA[My Journey]]></category>
		<category><![CDATA[Building business]]></category>
		<category><![CDATA[Scaling business]]></category>
		<guid isPermaLink="false">https://tomcocapital.com/?p=3156</guid>

					<description><![CDATA[<p>For years, I believed scale was the goal. More revenue, more customers, more everything. Today, I see it differently. Not anti-growth but far more selective about when scale actually makes sense.</p>
<p>The post <a href="https://tomcocapital.com/why-i-dont-chase-scale-anymore/">Why I Don’t Chase Scale Anymore</a> appeared first on <a href="https://tomcocapital.com">Tomco Capital - Coaching, Advisory &amp; Investments</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p class="wp-block-paragraph"><em>What I learned after decades of building and scaling companies.</em></p>



<p class="wp-block-paragraph">For a long time, I thought <strong>scale </strong>was the goal. More revenue, more customers, more people &#8211; all of it pointing in one direction: </p>



<p class="wp-block-paragraph"><strong>Bigger is better.</strong></p>



<p class="wp-block-paragraph">When I was a member in EO, there was always this quiet expectation in the background: <strong>grow or sell</strong>. </p>



<p class="wp-block-paragraph">Nobody said it outright, but it was there. If you weren’t pushing for more, you were somehow playing a smaller game.</p>



<p class="wp-block-paragraph">I bought into that for years. And I got good at it.</p>



<p class="wp-block-paragraph">But somewhere along the way, I started noticing something that didn’t quite add up.</p>



<h2 class="wp-block-heading">The Reality Check</h2>



<p class="wp-block-paragraph">What really started to change my thinking was observing other companies. A friend of mine runs a company doing around $10 million in revenue.</p>



<p class="wp-block-paragraph">On paper, it looks great. From the outside, most people think he’s crushing it. <br>Solid top line, large team, growing business, plenty of activity.</p>



<p class="wp-block-paragraph">But when you look a little closer, it tells a different story.</p>



<p class="wp-block-paragraph"><strong>He barely breaks even.</strong></p>



<p class="wp-block-paragraph">There’s constant pressure. Payroll, overhead, coordination, all the moving parts that come with a business of that size. A lot of effort goes into keeping the machine running, but very little of it actually turns into meaningful profit. And he’s one mistake, one lost customer, or one unexpected expense away from running at a loss.</p>



<p class="wp-block-paragraph">And you start to ask yourself a simple question:</p>



<p class="wp-block-paragraph"><strong>What exactly are we scaling here?</strong></p>



<p class="wp-block-paragraph">Revenue? Yes.<br>Complexity? Definitely.<br>Stress? Without a doubt.</p>



<p class="wp-block-paragraph">But profit? Not really.</p>



<p class="wp-block-paragraph">That&#8217;s when I realized: <strong>scale without profitability is meaningless</strong>.</p>



<h2 class="wp-block-heading">The Default Answer</h2>



<p class="wp-block-paragraph">What struck me over time is how quickly “scale” becomes the answer to almost every problem.</p>



<p class="wp-block-paragraph">If growth slows, the instinct is to push harder. If margins are thin, the assumption is that more volume will fix it. If the business feels stuck, the solution is usually framed as “we need to get bigger.”</p>



<p class="wp-block-paragraph">It’s rarely questioned.</p>



<p class="wp-block-paragraph">I remember sitting in EO forums where the conversation would inevitably drift in that direction. Not explicitly, not as a rule, but as a shared understanding: you either grow, or you position yourself to sell. Standing still &#8211; or worse, choosing not to scale &#8211; felt like a lack of ambition.</p>



<p class="wp-block-paragraph">That never quite sat right with me.</p>



<p class="wp-block-paragraph">Because it assumes that scale is the only logical destination. That bigger is always better. That the goal is to maximize the size of the business, regardless of what that does to everything else.</p>



<p class="wp-block-paragraph">But once you’ve seen what scale actually brings with it &#8211; the complexity, the pressure, the fragility &#8211; you start to wonder whether that assumption is true.</p>



<p class="wp-block-paragraph">Or whether we’ve just repeated it long enough that nobody challenges it anymore.</p>



<h2 class="wp-block-heading">The Missing Middle</h2>



<p class="wp-block-paragraph">What took me a while to realize is that there’s a middle ground most people don’t even consider. It’s not about refusing to grow. And it’s not about building something just to sell it.</p>



<p class="wp-block-paragraph">It’s about building something that is <strong>right-sized</strong>.</p>



<p class="wp-block-paragraph">I came across the idea in a book called <em><a href="https://www.amazon.com/Big-Enough-Company-Creating-Business/dp/1591844215">The Big Enough Company</a></em>, and it immediately resonated. It articulated something I had been feeling for a long time without putting words to it.</p>



<p class="wp-block-paragraph">The goal doesn’t have to be maximum scale.</p>



<p class="wp-block-paragraph">The goal can be a <a href="https://tomcocapital.com/i-stopped-looking-and-started-designing/">business that actually works for you</a>.</p>



<p class="wp-block-paragraph">A business that is large enough to be meaningful, but small enough to remain understandable. A business that generates real profit instead of just revenue. A business where you’re still building something, not just managing an increasingly complex system. </p>



<p class="wp-block-paragraph">Once you see that option, it’s hard to unsee it because it reframes the entire question.</p>



<p class="wp-block-paragraph">It’s no longer “How big can this get?”</p>



<p class="wp-block-paragraph">It becomes “How big should this be?”</p>



<h2 class="wp-block-heading">What I Care About Now</h2>



<p class="wp-block-paragraph">These days, I&#8217;m <a href="https://thomasmichaellive.com/2025-the-year-i-rebuilt-myself/" target="_blank" rel="noreferrer noopener">thinking differently about how I want to live and work</a>.</p>



<p class="wp-block-paragraph">I’m still interested in building. That part hasn’t changed. I still enjoy solving problems, designing systems, and putting something useful into the world.</p>



<p class="wp-block-paragraph">But I pay a lot more attention to what the business actually gives back in return.</p>



<p class="wp-block-paragraph">I care about whether it produces real profit, not just revenue that looks good on paper. I care about how complex it becomes as it grows, and whether that complexity adds value or just creates more moving parts to manage. I care about how much control I have over my time, my decisions, and the direction of the business.</p>



<p class="wp-block-paragraph">And I care about whether the whole thing makes sense.</p>



<p class="wp-block-paragraph">There’s something very appealing about a business that is simple, profitable, and understandable. One where you know exactly how it works, where the margins are clear, and where growth doesn’t automatically introduce chaos.</p>



<p class="wp-block-paragraph">That doesn’t mean I’m against scale.</p>



<p class="wp-block-paragraph">It just means I don’t chase it blindly anymore.</p>



<h2 class="wp-block-heading">Final Thought</h2>



<p class="wp-block-paragraph">I’m not against scale.</p>



<p class="wp-block-paragraph">I’ve spent decades building and scaling businesses, and I understand exactly why it’s attractive. Growth feels like progress. Bigger numbers feel like validation. It’s an easy story to tell yourself &#8211; and to others.</p>



<p class="wp-block-paragraph">But I’ve also seen what sits underneath it.</p>



<p class="wp-block-paragraph">Scale brings complexity. It introduces pressure. And if you’re not careful, it creates a business that looks impressive from the outside but doesn’t actually deliver what you thought it would.</p>



<p class="wp-block-paragraph">That’s why I don’t chase it by default anymore.</p>



<p class="wp-block-paragraph">These days, I’m far more interested in building something that works. Something that produces real profit, stays understandable as it grows, and doesn’t turn into a machine that needs constant feeding just to keep running.</p>



<p class="wp-block-paragraph">If that business scales along the way, great.</p>



<p class="wp-block-paragraph">But it’s no longer the goal.</p>



<p class="wp-block-paragraph">It’s just one possible outcome.</p>
<p>The post <a href="https://tomcocapital.com/why-i-dont-chase-scale-anymore/">Why I Don’t Chase Scale Anymore</a> appeared first on <a href="https://tomcocapital.com">Tomco Capital - Coaching, Advisory &amp; Investments</a>.</p>
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			</item>
		<item>
		<title>How to Productize Your Expertise Into a Scalable Business</title>
		<link>https://tomcocapital.com/how-to-productize-your-expertise-into-a-scalable-business/</link>
					<comments>https://tomcocapital.com/how-to-productize-your-expertise-into-a-scalable-business/#comments</comments>
		
		<dc:creator><![CDATA[Thomas Michael]]></dc:creator>
		<pubDate>Fri, 29 Aug 2025 14:10:58 +0000</pubDate>
				<category><![CDATA[For CEOs]]></category>
		<category><![CDATA[My Journey]]></category>
		<category><![CDATA[Exit]]></category>
		<category><![CDATA[Scaling business]]></category>
		<guid isPermaLink="false">https://tomcocapital.com/?p=3015</guid>

					<description><![CDATA[<p>I started as a high-paid SAP consultant selling hours. By productizing my expertise, I built a SaaS company, scaled it, and exited. Here’s the playbook.</p>
<p>The post <a href="https://tomcocapital.com/how-to-productize-your-expertise-into-a-scalable-business/">How to Productize Your Expertise Into a Scalable Business</a> appeared first on <a href="https://tomcocapital.com">Tomco Capital - Coaching, Advisory &amp; Investments</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p class="wp-block-paragraph"><em>From consulting hours to SaaS revenue &#8211; how to productize your expertise with a framework that transformed my career.</em></p>



<h2 class="wp-block-heading"><strong>From Consultant to Creator</strong></h2>



<p class="wp-block-paragraph">For years, I was perfectly happy as an <a href="https://www.erplingo.com/">SAP consultant</a>. I was good at what I did, billed top rates, traveled the world, and worked with some of the biggest companies on the planet helping them implement and configure SAP software.</p>



<p class="wp-block-paragraph">But once I got married, the constant travel started to wear thin. That’s when my good friend &#8211; and fellow SAP expert &#8211; Kent Bettisworth told me about a company in Europe that had just started offering online SAP training. This was around 2006, and back then, even SAP itself didn’t offer online training. The idea was unheard of.</p>



<p class="wp-block-paragraph">Naturally, I had to check it out. What I found wasn’t impressive &#8211; the execution was clunky, the content uninspiring. But the spark was undeniable. The <em>idea</em> was right. They just weren’t doing it well. And that’s when it hit me: <em>I could do this better.</em></p>



<p class="wp-block-paragraph">So I dove into a world I knew nothing about: online education and authoring tools. I experimented with formats, failed repeatedly, and eventually landed on a model I liked. To my surprise &#8211; and relief &#8211; people responded well. I built one course. Then another. Then another.</p>



<p class="wp-block-paragraph">At first, it was just me, in between consulting gigs. But I wanted to test the idea that I could create a revenue stream not tied to my time. By the time I’d created 20 courses, the writing was on the wall: it worked. The business had legs.</p>



<p class="wp-block-paragraph">From there, I hired SAP experts to draft scripts, instructional designers to build lessons, and voice-over talent to record audio. What started as a side project grew into the world’s largest independent SAP training platform &#8211; until SAP itself finally entered the market, knocking us down to #2.</p>



<p class="wp-block-paragraph">What began as a personal experiment had turned into a scalable company.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading"><strong>Step 1: Start Small and Validate</strong></h2>



<p class="wp-block-paragraph">Looking back, the smartest thing I did was start small. One course. That’s it.</p>



<p class="wp-block-paragraph">I didn’t spend months writing a business plan. I didn’t raise money. I didn’t build a giant website with dozens of features. I just created a single course and put it out into the world to see if anyone cared.</p>



<p class="wp-block-paragraph">They did. And that’s when I made another. Then another. Each course was a test. Each one taught me something about what worked, what didn’t, and what people were actually willing to pay for.</p>



<p class="wp-block-paragraph">The beauty of starting small is that the risk is minimal. If nobody had bought my courses, I’d have wasted some nights and weekends &#8211; nothing more. But because I tested early, I discovered a viable business model while keeping my downside limited.</p>



<p class="wp-block-paragraph">It’s easy for entrepreneurs to get paralyzed, waiting for the “perfect” idea or obsessing over a 40-page business plan. My advice: don’t. Launch early, fail fast, iterate often. That’s how you validate.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading"><strong>Step 2: Build Systems, Not Dependencies</strong></h2>



<p class="wp-block-paragraph">After the first 20 courses, I hit a wall. There was no way I could keep creating everything myself while also running consulting projects. If the business depended on me, it wasn’t scalable &#8211; and certainly not sellable.</p>



<p class="wp-block-paragraph">So I started building systems. I brought in SAP experts to write lesson scripts. Instructional designers to build the actual courses. Voice actors to record audio. Later, a customer service team to handle support tickets. Every piece of the puzzle that once lived in my head was broken down into a repeatable process that someone else could execute.</p>



<p class="wp-block-paragraph">That shift &#8211; from dependency to systems &#8211; is what turned my side hustle into a company. Without it, I’d have been stuck in the freelancer trap, just with a fancier product. With it, I had a machine that could scale far beyond me.</p>



<p class="wp-block-paragraph">This is the difference between running a business and owning a job. If your business stops when you do, you don’t really have a company. You have a dependency.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading"><strong>Step 3: Evolve the Model</strong></h2>



<p class="wp-block-paragraph">At first, the business was simple: I sold individual courses to SAP professionals. It worked &#8211; but it was still small scale.</p>



<p class="wp-block-paragraph">Then I started thinking bigger. What if I could sell bundles of courses to entire companies? That’s when <a href="https://tomcocapital.com/how-i-built-a-top-notch-team-for-a-small-unknown-company/">I built a B2B sales team</a> and hired account managers. The shift paid off. We sold a lot of corporate training packages, and revenues climbed fast.</p>



<p class="wp-block-paragraph">But the real breakthrough &#8211; the move that put the company into overdrive &#8211; was switching to a SaaS subscription model. Instead of one-off course sales, everything became a recurring contract. Customers signed up once, and their access renewed automatically until they canceled.</p>



<p class="wp-block-paragraph">That single decision doubled the value of the business. It gave us predictable revenue, steadier cash flow, and a multiple that investors couldn’t ignore. SaaS wasn’t just a new model &#8211; it was the turning point that made the business scalable and highly attractive for acquisition.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading"><strong>Step 4: Prepare for Exit</strong></h2>



<p class="wp-block-paragraph">Growth is exciting. But if you ever want to sell, growth alone isn’t enough. Buyers don’t just look at your revenue; they look at how your business runs without you.</p>



<p class="wp-block-paragraph">That’s where preparation made all the difference. I spent over a year making the company “exit-ready.” Every agreement, every contract, every financial statement was organized and accessible. Processes were documented, teams were trained, and I deliberately made myself less important.</p>



<p class="wp-block-paragraph">By the time we went to market, <a href="https://thomasmichaellive.com/life-after-selling-a-business/">the company didn’t <em>need</em> me anymore</a>. And that’s exactly what buyers want to see. They’re not buying your personality or your hustle; they’re buying a machine that will keep running long after you’re gone.</p>



<p class="wp-block-paragraph">Because we had recurring revenue, clean financials, and a business that ran on systems &#8211; not me &#8211; we attracted serious buyers quickly. And when the right deal came along, we were ready.</p>



<p class="wp-block-paragraph">Preparation wasn’t glamorous. It was tedious, detail-heavy, and sometimes felt like a second job. But it paid off in multiples when it came time to exit.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading"><strong>The Playbook for Productizing Expertise</strong></h2>



<p class="wp-block-paragraph">Looking back, the path from consultant to SaaS founder to exit wasn’t magic. It was a series of very deliberate steps:</p>



<ol class="wp-block-list">
<li><strong>Start small and validate.</strong> Don’t wait for perfect. Ship something, see if people care, and learn by doing.</li>



<li><strong>Build systems, not dependencies.</strong> If the business relies on you, it’s not a business. Process everything.</li>



<li><strong>Evolve the model.</strong> One-off sales might pay the bills, but recurring revenue builds enterprise value.</li>



<li><strong>Prepare for exit.</strong> Get your house in order early. Clean financials, documented processes, and a business that runs without you make all the difference.</li>
</ol>



<p class="wp-block-paragraph">That’s the framework. It works whether you’re selling training courses, SaaS, or any other form of productized expertise.</p>



<p class="wp-block-paragraph">The biggest trap experts fall into is clinging to the billable hour. The biggest opportunity is turning what you know into something that scales without you.</p>



<p class="wp-block-paragraph">I did it in SAP training. You can do it in your industry.</p>



<p class="wp-block-paragraph"></p>
<p>The post <a href="https://tomcocapital.com/how-to-productize-your-expertise-into-a-scalable-business/">How to Productize Your Expertise Into a Scalable Business</a> appeared first on <a href="https://tomcocapital.com">Tomco Capital - Coaching, Advisory &amp; Investments</a>.</p>
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