Michael Erath Scales Up with Next Level Growth

My career started when I joined my family’s manufacturing business, Erath Veneer, eventually working my way up to president and CEO. I led the company’s revenue growth from $8 million to $45 million and expanded our workforce from around 75 to more than 200. I later started a new venture in the hardwood industry, which I took from a startup to $7 million in just five years.

In 2015, I transitioned from running businesses to helping others grow theirs by becoming an executive team coach and consultant, founding Next Level Growth. While many executives who transition into consulting end up creating lifestyle businesses with limited scalability, I wasn’t willing to settle for that. However, building a standout coaching business is challenging, especially in a crowded market with approximately 53,300 business coaches in the U.S. alone, according to IBISWorld data.

From 2015 to 2019, I honed my coaching skills and growth strategy, then in 2019 brought on my first partner and business guide, Scott Elser. There was a lot of work and thought that went into getting the vision and strategy clear before I was ready to start bringing on partners.

To develop a clear path forward, I consulted with a select group of “ideal” clients to understand what they valued most in our work together. One question I asked them was, “Why did you choose to work with me instead of other options?” The responses highlighted three key factors: my real-world experience scaling a business to a significant level, my flexibility to tailor my approach to their needs, and the results they were achieving under my guidance.

With this feedback, I solidified my “one-phrase strategy”: Experience Matters. I had to get very focused on how we would differentiate ourselves in the marketplace so that our value would be clear. The first step was to establish stringent criteria for becoming a partner and business guide at Next Level Growth. I decided that any potential partners must have been an owner or CEO of a company with at least $10 million in revenue and 50 or more employees. Anyone not meeting this threshold would not be considered.

I recognized that setting such a high bar would slow the company’s ability to find and bring on qualified partners, but it would also ensure a high level of real-world experience. There were a few times I was tempted to accelerate our growth by bringing former COOs onboard as guides, but it didn’t work out. COOs are great at execution, but they often lack the breadth of experience in financial and marketing strategy that CEOs typically have. CEOs bring more comprehensive experience to the table.

Another key aspect of Experience Matters is what I call the “Results Experience.” Many business coaches teach within the confines of a specific system, often prioritizing the system over the client’s needs and outcomes. In contrast, Next Level Growth’s approach focuses first on the client’s unique circumstances and vision, allowing the system to be tailored to them, rather than forcing them into a prescriptive box. This client-centered approach led to the creation of Next Level Growth’s Five Obsessions of Elite Organizations®.

By putting the client and their desired outcomes first, Next Level Growth ensures clients a customized system, tailored to their needs. The Guide’s Experience and the Results Experience are key parts of a five-pillar differentiation strategy that has been instrumental in Next Level Growth’s success.

Since bringing on the first partner and business guide in 2019, Next Level Growth has expanded to eight partners, primarily based in Phoenix, supported by an administrative team of seven. The company now works with executive leadership teams from nearly 100 organizations across 28 states and has earned a spot on Inc. magazine’s 2024 list of the fastest-growing companies in the U.S., the Inc 5000.

I’m driven by a passion that stems from my long journey as an entrepreneur and a realization that most entrepreneurs achieve success at the expense of their personal lives, including friendships, family time and health. So, I’ve built Next Level Growth around a mission to help entrepreneurs earn more than a return on investment with their business. We help them earn a meaningful return on life.

Did You Know: Michael Erath, founder of Next Level Growth, is currently working on his third book, to be released in the first half of 2025, titled Five Obsessions of Elite Organizations.

Did You Know: According to QuickBooks’ 2024 Small Business Success Month Report, 76% of small business owners experience significant stress related to their business operations. The study highlighted several key stressors, including financial pressures, operational challenges and the responsibility of managing all aspects of the business.