You may be focused on building your start up and riding high on success, but scaling too fast has its dangers. It’s critical to recognize the signs and correct your course before it hurts your business. The 15-strong Forbes Coaches Council has created a list of critical signs – here are my top five.
You’re Not Meeting Your Success Metrics – Set time, volume and revenue thresholds for your company. Understand in advance what it would take for you to decide to change your plan before you have reached your goals, and put those requirements in writing.
You’re Scaling Before You’ve Achieved Consistent Profitability – You need to attain consistent profitability before expanding. Adopting a “profit first” model (check out the book Profit First by Mike Michalowicz) will help a start-up scale smartly and avoid unnecessary expense and debt traps.
You’re Trying To Scale Everything At Once – When start-ups scale too big and too soon, it diverts attention, Play the long game and scale in stages, by taking what’s working well and expanding that to certain thresholds.
You Don’t Have An Onboarding Process In Place Yet – Without proper onboarding and mentoring programs, you risk more than you might think. Scaling is exciting, and you have to keep your employees delivering on your promises.
You’re Forcing It – Instead of crafting a plan to aggressively scale a
business, “go with the flow.” Scaling is a way to serve more
customers better. Do not force it. If you scale too fast, you run the risk of
stretching your resources too thin and putting the health of your business at
Read the full list here
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