Do Scale

Scaling isn’t just growth on steroids; it’s a deliberate art of increasing impact sustainably.

1. Scaling Focuses on Market Share

Scaling is not just about growing a business; it’s about growing it in a way that places market share above every other goal. To scale successfully, leaders must shift their focus from refining products or services to expanding their market presence. This often means putting other priorities, such as employee training or product innovation, in the backseat temporarily.

For instance, consider a guitar-maker named Jim. His handmade guitars garnered widespread acclaim, and he envisioned scaling his business to reach new customers. However, scaling required him to step back from crafting guitars and focus on strategy. Jim wasn’t ready to let his passion take second place, so he chose profitability through selling his company rather than attempting to scale, which didn’t align with his priorities.

For leaders aiming to scale, the first step is understanding this shift in priorities. If market share isn’t the ultimate aim, scaling might not be the right decision. Leaders must assess whether growing their company aligns with both personal and organizational goals before proceeding.

Examples

• Jim, the artisan who chose not to scale and continued focusing on craftsmanship.
• Companies prioritizing market expansion over perfecting existing services.
• Start-ups that fail because they treat growth and scaling as the same process.

2. Flipping vs. Scaling: Choose Your Path

Scaling isn’t the only game in town. Another option is flipping, a faster but riskier path, where the goal is to grow as quickly as possible and then sell the company. Leaders must decide between these two methods based on their attitude toward profit and sustainability.

Flipping prioritizes rapid expansion at any cost, often using heavy marketing or giveaways to generate buzz. While some succeed in finding buyers, others falter when they can’t sustain long-term growth. In contrast, scaling takes a slower, deliberate route. It focuses on establishing a foundation for sustained revenue and continuous growth over time.

For example, a small app developer might lack resources to grow beyond their initial product. Selling to a larger company allows them to profit without gambling on future success. Meanwhile, a café chain might choose gradual scaling, opening new locations one by one to build a strong customer base.

Examples

• Companies giving away free products to gain immediate market traction.
• Developers selling successful apps when unable to sustain future iterations.
• Small chains taking a slower, sustainable route to enter national markets.

3. Define Your Scaling Vision

Before scaling, a leader needs a clear, specific vision detailing how the organization should grow. This vision must encompass measurable goals, target market segments, potential growth, and realistic time frames, forming a roadmap for progress.

For instance, if a coffee shop owner decides to scale by opening six new locations over three years, this becomes their “True North”—a guiding statement for decisions. The owner must identify the target demographics for each new café and calculate how much revenue the expansion could yield against costs.

Whether scaling nonprofit aid programs or retail chains, defining this vision ensures everyone understands the destination and moves in the same direction. A specific vision also prevents wasteful distractions.

Examples

• A café owner planning to open six new shops across a state in three years.
• A nonprofit aiming to deliver meals to 45 schools within two years.
• A company researching maximum market growth for informed goal-setting.

4. Retrain Your Instincts

Starting a business often means relying on gut feelings and quick thinking, but scaling demands a shift. Leaders must learn to rely on hard data and delegate decision-making to scale effectively. The improvisational instincts that help in starting out can create chaos during scaling.

In small companies, founders often make every decision. But during scaling, relying on data is safer than anecdotal evidence. Leaders also need to empower a team that can make informed decisions without constant supervision to avoid bottlenecks.

For instance, a retail business scaling to multiple locations can falter if its leader clings to every decision. Training employees to analyze data and make sound choices prevents poor outcomes while freeing leaders to focus on strategic goals.

Examples

• Transitioning from gut-based decisions to data-driven approaches.
• Leaders delegating decisions to trained staff teams.
• New systems for storing and accessing business data efficiently.

5. Scaling Challenges Entrepreneurial Tendencies

Entrepreneurs thrive on freedom, creativity, and flexibility. Yet scaling requires consistency, discipline, and patience, which can clash with these traits. Many leaders feel frustration when routine systems replace their dynamic pace.

Scaling requires repeating processes, investing time to train staff, and waiting for systematic growth. To navigate this, leaders should find creative outlets or activities outside work to relieve tension. This helps them stay focused on scaling efforts without burning out.

An example might be an ambitious tech founder who’s used to fast-paced innovation but slows down during scaling to refine the organization’s operations. Finding balance through hobbies or mentorships might keep frustrations in check.

Examples

• Entrepreneurs stepping away to let systems run without interference.
• Creative pursuits outside work to counter monotony.
• Leaders accepting slower progress to secure long-term rewards.

6. Change Decision-Making Approaches

Scaling demands a shift to High-Quality Team-Based Decision-Making (HQTBDM). No longer can a single individual call the shots. Instead, leaders must rely on team input, making slower but more reliable decisions informed by research and data.

In one example, a company that transitioned to HQTBDM scheduled frequent team meetings. Decisions took longer but resulted in smoother implementation, as potential hiccups were addressed ahead of time. Without this approach, scaling might unravel due to hasty or uninformed choices.

By trusting teams and prioritizing strategic input, organizations can ensure better scalability.

Examples

• Team-based planning meetings that improve decisions and results.
• Separating decision-making from implementation processes.
• Using data as the foundation for all company moves.

7. Build a Functional Org Chart

A strong structure is key to scaling. Leaders should develop an organizational chart that lays out clear roles, reporting lines, and data flow. Without this, decision-making can become murky, slowing down operations.

For instance, a marketing team in a scaling company could be split between two managers without a defined chain of command. Clarifying these responsibilities ensures smoother operations and better outcomes. Leaders should also anticipate future roles as needs evolve.

By refining job roles and hierarchies, companies create a system that allows them to grow efficiently.

Examples

• Observing team activities to refine unclear job roles.
• Mapping hierarchy chains for smoother reporting and decision-making.
• Planning for additions like customer care managers during growth stages.

8. Managers Must Think Broadly

Effective scaling depends on managers who prioritize the company’s needs over their own team’s goals. This means training managers in lateral thinking, where their mindset shifts from local team success to organizational-wide priorities.

For example, IT managers should view marketing’s website needs with equal weight to external customer demands. Teaching managers to balance all expectations ensures the entire system runs smoothly during scaling transitions.

Cultivating this broad perspective in managers prevents bottlenecks caused by narrow thinking.

Examples

• Educating managers to focus on cross-departmental collaboration.
• Posting company-centric mission statements in workspaces.
• Encouraging transparent conversations to address team concerns.

9. Stay on Course with Your Vision

Throughout the scaling process, leaders must continually revisit their scale vision to stay aligned with long-term objectives. A clear vision helps prevent emotional reactions or strategic detours that can derail efforts.

Whether it’s launching new products, expanding geographically, or increasing revenue, vision statements ensure every decision ties into the bigger picture.

Examples

• Leaders frequently reminding employees of the company’s goals.
• Organizations regrouping after unexpected challenges to realign vision.
• Regular progress evaluations based on established benchmarks.

Takeaways

1. Consistently rely on data, not instincts, for all scaling decisions. Allow data to lead your strategies.
2. Delegate responsibilities effectively by training employees to take ownership of roles.
3. Foster lateral accountability across teams to ensure scaling benefits the entire organization rather than isolated departments.