Reading time: 6min

2. Advertise

Stage: 2

Stage Overview

What to do: Advertise

Your role: Doer

Headcount: 1

Leadership Structure: Freelancers.

Companies at this stage: 30,000,000 (100% of companies.)

Area	Constraints	To Graduate
Product	Paying customers have higher expectations, product is unreliable, and not good enough.	Fix it good enough for now in an unscalable way.
Marketing	Lead flow is inconsistent (Stop:Start).	Live by the rule of 100. Prioritize advertising daily.
Sales	Sales conversions are inconsistent.	Nail down a script for setting and closing (CLOSER & ACA).
Customer Service	Paid customers have higher standards and complain more.	Learn to deal with disappointed customers (angry boat). Get testimonials from happy customers (epiphany script).
Information Tech (IT)	You have no money to afford tech.	Use free tech (google suite) and get free trials/credits for starter softwares. Website/hosting. Starter CRM/POS.
Recruiting	Too much work for part timers.	Convert part timers to full timers, make public posts, or run ads on job boards to get full timers.
Human Resources (HR)	You have full timers but structured like contractors.	Set up W-2 and 1099s.
Finance	You don't keep track of money or have a way to pay taxes.	Spin up quickbooks equivalent. Save for taxes. Check your bank account daily.

Bottom line: New customers are inconsistent.

Graduate by: Let more people know about your stuff.

When you hit “Stage 2. Advertise”

You’ve made your first sales, and now it’s time to tell more people about your business. Think of this like moving from having a food stand that only your friends know about to actually advertising to get new customers who’ve never heard of you.

The big picture:

In this stage, you’re what we call a “doer”. Someone who’s actively running their business and starting to use freelancers for help.

You’re still the main person, but now you’re beginning to get part-time help. They give you some time back and help you with tasks you don’t have the skills (or desire) to do.

All businesses that survive reach this stage, so you’re in good company.

Your Main Challenge: Product

Your paying customers are much pickier than your free ones were!

They have higher expectations, and your product might not be reliable enough yet. Maybe your food service is sometimes great but sometimes inconsistent, or your computer repair work takes different amounts of time for similar problems.

The key here is to fix things in an “unscalable way.” This means doing whatever it takes to make customers happy, even if it’s not efficient.

You might need to:

Work longer hours to get things perfect
Double-check everything
Provide extra service at no charge
Fix problems immediately when they come up

Think: driving to the convenience store to drop off ice cream to a customer’s house at 2AM.

The point is to be valuable, not scalable, yet.

Marketing Challenges

Your biggest problem now is that your customer flow is inconsistent. Sometimes you’re too busy, sometimes too quiet. It’s like having a restaurant that’s packed on weekends but empty on weekdays.

You need to:

Follow the “Rule of 100” (spend 100 minutes daily on marketing)
Make marketing a daily priority, not just when you’re slow. (Get ahead)
Keep track of what brings in customers (actions & results).
Test different ways of reaching people. Stick with the one that works best for you. Don’t try and diversify in the beginning. Double down on what works.

Sales Challenges

Sales are up and down, and you need to fix that. It’s time to:

Create a consistent sales script
Learn the “CLOSER” method for converting leads
Practice your pitch until it’s natural
Track what works and what doesn’t

Customer Service

Paying customers complain more and have higher standards. You need to:

Learn to handle upset customers (using the “Angry Boat” method)
Get testimonials from happy customers using the “Epiphany Script”
Turn complaints into improvements
Make every customer feel special

Technology Needs

Money is tight, but you need basic tools. Focus on:

Using free trials and credits
Getting basic website/hosting
Setting up a simple CRM (customer management system)
Using free Google tools

Getting Help

Your part-timers aren’t enough anymore. You need to:

Start converting part-timers to full-time employees
Post job ads
Look for people who want steady work
Be clear about expectations

Managing People

Now that you have help, you need to:

Set up proper employment paperwork (W2s and 1099s)
Create basic training
Establish work schedules
Make responsibilities clear

Money Management

Things are getting more complex with money. You need to:

Set up QuickBooks or similar accounting software
Save money for taxes
Check your bank account daily
Keep track of all expenses
Start planning for bigger expenses

Daily Life at Stage 2

Your typical day might include:

Serving existing customers
Marketing for new customers
Managing part-time help
Handling money
Fixing problems
Improving your product/service
Talking to potential customers

Common Feelings at This Stage

Overwhelmed by all the moving parts
Excited about growth
Worried about consistency
Proud of becoming a “real” business
Stressed about managing others
Concerned about money flow

The keys to success at Stage 2

Keep Quality High:

Never sacrifice quality for speed
Fix problems immediately
Learn from mistakes
Keep improving

Stay Organized:

Use simple systems
Track everything
Keep good records
Stay on top of taxes

Manage People Well:

Be clear about expectations
Pay people properly
Provide good training
Show appreciation

Watch the Money:

Track every dollar. Check your bank account daily.
Save for taxes. Make a separate account if you have to.
Plan for expenses.
Keep personal and business money separate.

Keep Marketing:

Market every day
Try new methods
Track what works
Do more of what works (volume)

What success looks like

Signs you're doing it well:

Customers are coming back
New customers are finding you
Your help is reliable
Money is steady (even if not huge)
Systems are starting to work
Problems get fixed quickly

Warning signs to watch for:

Inconsistent quality
Customer complaints increasing
Money problems
Helper turnover
Feeling constantly behind
Too many emergencies

The big picture goal

Your main goal in Stage 2 is to get more people to know about your business in a consistent way. You’re not just serving customers anymore - you’re building a real business that can grow.

Graduating from Stage 2

You're ready for Stage 3 when:

Quality is consistent
New customers come regularly
Systems are working
Money is organized
Help is reliable
Marketing is steady

Remember:

This stage is about creating stability and systems. You’re moving from “figuring it out” to “doing it right.” It might feel slower than you want, but building these foundations is crucial.