By: Dr. Connor Robertson
Introduction
Scaling a business to $10 million and beyond isn’t just about hustle; it’s about strategic focus.
At $1M in annual revenue, you can often manage a business by intuition. At $3M, you might still operate effectively with high-output efforts and a few well-timed hires. But at $10M+, operating without clear insight becomes increasingly difficult. You need visibility, predictability, and clarity. That clarity can often be found in the right metrics. As Dr. Connor Robertson, I’ve supported businesses across real estate, private equity, and high-growth B2B services scale past $10M in top-line revenue, while maintaining robust margins, systems, and sustainability. The key difference? It’s not just about execution, but also about tracking the right things at the right time.
This article outlines the essential KPIs, metrics, and dashboards you should consider to scale beyond $10M in a controlled, sustainable manner.
Why Many Businesses Track the Wrong Metrics
Here’s what I see often:
- Vanity metrics such as likes, reach, and traffic, without corresponding conversions.
- A focus on revenue, but little attention to margin control.
- Relying on gut-feel forecasting rather than data-driven decisions.
- Sales teams being measured solely on booked calls, without considering profit per deal.
- Operations teams overwhelmed with tasks, yet lacking prioritization.
What you choose to measure matters. Over-measuring can lead to confusion, while failing to measure key areas can hinder growth.
The goal isn’t to track everything but to focus on what’s truly important at the right time.
Let’s explore the six core categories that every business scaling to $10M+ should monitor regularly.
1. Financial Metrics: Beyond Revenue
1.1. Gross Profit Margin
Formula: (Revenue – COGS) ÷ Revenue
This is crucial for scaling. If your gross margin is too low, reinvestment becomes challenging. I’ve worked with real estate firms generating $10M+ in revenue but struggling with gross margins below 12%, which significantly impacted their growth potential.
Ideal ranges:
- Services: 40–60%
- SaaS or licensing: 70–90%
- Real estate operations: 30–50%
If your margin falls short, consider revisiting your pricing, vendor contracts, or delivery models before scaling further.
1.2. Net Profit Margin
Formula: Net Income ÷ Revenue
This metric tells you how much profit you’re actually retaining. Too many businesses scale their top line but end up stretched thin as expenses rise with revenue.
Target at scale:
- 15–25% net margins for service companies
- 25–35%+ for digital/tech products
- Real estate: net cash flow, appreciation, and tax benefits
I track this on a monthly basis for all brands under the Dr. Connor Robertson ecosystem. After all, high revenue is meaningless without a healthy, sustainable bottom line.
1.3. Operating Expense Ratio
Formula: Total OpEx ÷ Revenue
This helps you assess the efficiency of your team and systems. As you scale past $5M, your OpEx percentage should ideally decrease due to increased leverage, automation, and delegation.
Ideal: Under 60%
World-class: Under 50%
Be sure to track this by department: marketing, sales, operations, and administration.
1.4. Cash Conversion Cycle
How long does it take for an investment to return as profit?
This includes receivables, fulfillment timelines, and realized cash. In private equity and real estate, it also factors in capital expenditure timelines, sales, refinancing windows, and payment terms.
Shorter cycle = more flexibility and faster reinvestment.
2. Marketing Metrics: From Eyeballs to ROI
2.1. Cost Per Lead (CPL)
Formula: Total Ad Spend ÷ Leads Generated
Track this by channel. If LinkedIn costs $120/lead while YouTube costs $22/lead, this suggests potential adjustments to your strategy or targeting.
However, CPL is just the starting point…
2.2. Customer Acquisition Cost (CAC)
Formula: Total Marketing + Sales Spend ÷ New Customers Acquired
Measure this on a monthly basis, and break it down by campaign or product.
Rule of thumb: The CAC payback period should generally be under 6 months for services, under 12 months for long-term contracts, and under 18 months for real estate funds or LPs.
2.3. Customer Lifetime Value (CLTV or LTV)
Formula: Average Revenue × Average Duration × Gross Margin %
This tells you the value each client represents. It helps you determine how much you can reasonably invest in acquiring customers.
Target: LTV: CAC ratio of 3:1 or better. In private equity, LTV could represent how long founders remain post-acquisition, plus exit multiple potential.
2.4. Lead Velocity Rate (LVR)
Formula: % increase in qualified leads month-over-month
This measures the speed at which you’re growing your lead pipeline in comparison to revenue. High-performing marketing teams closely track LVR.
3. Sales Metrics: Predictable Revenue Models
3.1. Sales Cycle Length
Formula: Average time from lead → closed deal
This gives insight into how quickly your revenue grows. Real estate capital raises might close in as little as 14 days, while mid-market private equity deals can take 90–120 days.
Faster cycles = higher revenue velocity.
3.2. Close Rate (Lead to Deal)
Formula: Closed ÷ # Qualified Opportunities
Track this by:
- Salesperson
- Channel
- Offer
- Lead source
If you close 10% of LinkedIn leads but 32% of referrals, this indicates room for improvement in your lead-gen efforts.
3.3. Average Deal Size
Formula: Revenue ÷ Deals Closed
Increasing your average deal size by 20% can often be simpler than acquiring 20% more customers. This is why I consistently work with my clients to improve perceived value and adjust pricing.
3.4. Pipeline Coverage Ratio
Formula: Total Pipeline Value ÷ Revenue Target
Aim for 3–5x coverage per sales rep per quarter to stay ahead of quotas. Less than this indicates risk, while more could indicate inefficiency.
4. Operational Metrics: Delivery + Capacity
4.1. Customer Onboarding Time
Formula: Time from sale → full implementation
Faster onboarding translates to faster cash realization and often reduces churn.
- World-class: 24–72 hours
- Acceptable: 5–7 days
- Red flag: >14 days with no contact
4.2. Customer Success Rate
Formula: % of clients who achieve their desired outcome
Track this metric monthly. It’s not just about customer satisfaction or renewals, but whether clients are achieving real-world success. A higher success rate typically leads to fewer refunds, stronger testimonials, and more referrals.
4.3. Fulfillment Margin
Formula: Revenue – Delivery Cost (hours, tools, support)
If your fulfillment margin decreases as you scale, your delivery model may need optimization with automation, templates, or more efficient team members.
4.4. Utilization Rate
Formula: Billable Hours ÷ Available Hours (for service teams)
- Under 60%: Overstaffed
- Over 85%: Burnout risk
- Target: 70–80% for creative or advisory roles
5. Client Experience Metrics: Brand + Retention
5.1. Net Promoter Score (NPS)
Formula: “How likely are you to recommend us to a friend?”
Track this quarterly. Companies with world-class scores often average 70+. Scores below 30 may indicate potential issues.
5.2. Churn Rate
Formula: % of customers who cancel or don’t renew
Track both gross and net churn. Net churn considers whether upsells or expansions offset losses. If churn exceeds 10% annually, you might face retention or experience challenges.
5.3. Referral Rate
Formula: % of new business from past clients
A referral rate of over 25% indicates that your customer experience is effectively driving new business.
6. Strategic Metrics: Long-Term Scale
6.1. Runway
Formula: Months of cash in the bank with current burn
- Under 3 months: Critical zone
- 6–9 months: Strategic safety
- 12+ months: Healthy buffer
Founders should know this number every Monday.
6.2. Return on Capital (ROIC)
Formula: Capital deployed and the return generated (especially in private equity or real estate)
Target: 2–5x over 3–7 years, depending on the asset type and exit strategy.
6.3. Team Health Score
Formula: Track metrics such as burnout, engagement, role clarity, and culture through anonymous surveys or 1:1 reviews.
Scaling beyond $10M requires not only solid systems but also a motivated, engaged team. A breakdown in team health can lead to operational disruptions.
What I Track at Dr. Connor Robertson Enterprises
Each week, my team updates a single dashboard with:
- Revenue (by offer)
- CAC, CPL, and close rate
- Pipeline size and age
- NPS and fulfillment margin
- Google ranking and backlink growth
- Referral %
- Time allocation by role
This process takes just 30 minutes but informs 100% of our decisions.
Final Thoughts from Dr. Connor Robertson
Scaling beyond $10M isn’t a finish line—it’s a shift in perspective. It challenges businesses to move from constant hustle to strategic decision-making.
If you want to scale effectively and sustainably, here’s what you can do:
- Focus on tracking meaningful metrics.
- Create a single, accessible dashboard for all teams.
- Base decisions on solid data, not assumptions.
- Encourage your team to engage with and take ownership of the metrics.
Because businesses that scale successfully beyond $10M focus on what truly matters. For access to the metric templates, dashboards, and systems I use with my clients, visit www.drconnorrobertson.com.
Scale smarter. Achieve longer-term success.
Disclaimer: The content of this article is for informational purposes only and reflects the views of the author. The strategies and insights shared are intended to offer general guidance and may not be applicable to every situation or business. Readers should consider their specific circumstances and seek professional advice before implementing any recommendations.
