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Two founders discuss scaling a $5-10M company without breaking it. They argue for one clear plan over multiple product lines, and steady 20-40% yearly growth over rapid scaling. Growing too fast can destroy the business.
Two founders discuss scaling a $5-10M company without breaking it. They argue for one clear plan over multiple product lines, and steady 20-40% yearly growth over rapid scaling. Growing too fast can destroy the business.
If you're talking to.
Somebody who's sitting.
There between.
5 and 10 million and looking at you trying to get to 90 million, what advice do you have for an earlier stage company trying to scale up? The biggest advice is try.
To.
Figure.
Out one plan of action. Don't experiment with multiple product lines or business models all in the same business, which a lot of people do. The other advice is really make it a step function. I think everyone thinks like parabolic growth is very sexy. You raise money, you throw money at a problem and oh my God, it tripled in a year. I would hate to triple it a year. I think there's a lot of things that break and actually oftentimes makes you a worse company because you grew too fast. Amazon Web Services, when they started it, when they launched it the first year, did 20 million in sales and now does 20 million every hour and a half. It's been over 20 years. The point is, if you can get a business that grows 20, 30 or 40% a year, it's going to be very big because compounding is a very strong force.
