Why Most Businesses Get Stuck Between $1M and $3M

The hardest (bootstrapped) revenue level is $1m to $3m in revenue. Main reason: assuming 25% margins, you have $250k to $750k in profit. Typically you need higher value teammates to scale. And they cost...$250k-$750k. So you have to bet everything on an unsure thing. 3 Alternatives: 1) Narrow avatar to more valuable customers, so you can make more money with same infra. 2) Make a better offer you can charge more money for 3) Raise prices. But no matter which path you choose, it takes more risk to get out of "the swamp' than it take to get into it (which is why most get in, and never break out)