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From Growth to Bust: The Hidden Dangers of Chasing Growth Without Scale
We all have heard of the list of INC's Fastest Growing Companies. But what happens to those in this prestigious group? You might be surprised. Read on.
​First, Understand Growth ≠ Scale-Readiness
“Growth” is what happens when you do more—more sales, more projects, more activity.
“Scale-readiness” is what happens when your business can handle more—with less chaos, better margins, and a team that actually enjoys the ride.
The difference is subtle, but critical:
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Growth can make your business harder to run.
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Scale-readiness makes your business easier to run as it gets bigger.
​​​​Now You'll Understand The INC 5000 Dilemma
Companies that are eligible for the "Fastest Growing List" are privately held, for-profit, independent, U.S.-based, and meet minimum revenue requirements ($100,000 in the first year and $2 million in the final year of a three-year period). For many, that growth looks phenomenal—“they must be doing everything right.”
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But here is the backstory:
67% of the businesses that are fortunate enough to land on the INC 5000 list end up failing.
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​The Kauffman Foundation, coupled with INC Magazine who publishes the list every year, did a follow-up of businesses who had received this award. Within 5-8 years the majority had dropped in size, sold in a "fire sale" or gone out of business. It's proof that sprits of growth, even for a few years, does not guarantee long term success or longevity.​
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What went wrong?​
As a startup:
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The owner is usually is the driver for vision, sales, operations - everything.
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It is easier to communicate process when there are few employees - nothing gets formalized because it doesn't need to be.
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"Finance" is usually measured in top line revenue, but not much else is monitored.
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But once companies reach a certain size, what worked as a startup won’t sustain long-term growth—let alone true scale.
At a certain point, as a company reaches a certain size - particularly through rapid growth or going from start-up to growth phases, you'll hit a ceiling of complexity where the old way of doing things will take you down.
What Sustained, Scalable Growth Really Takes
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Formal processes everyone knows and uses—no “room for interpretation.”
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The ability to measure everything—from marketing ROI to sales KPIs, operational excellence, and margins.
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An aligned team—marketing and sales inform each other, sales and operations collaborate, finance talks to all. Everyone marches to the same vision, with a stake in decisions and direction.
The Takeaway: Growth Is Good—But Scaled Growth Makes You Sustainable
If you’re serious about building a business that lasts—one that doesn’t just make the INC 5000, but thrives long after—the difference is scale-readiness. It’s about building systems, aligning your team, and creating a foundation that supports profitable, sustainable growth.
Don’t settle for short-lived success or become another statistic.
Take the next step toward a business that grows with less chaos, stronger margins, and a team that’s all-in.
Ready to find out if your company is truly scale-ready? Let's have a quick chat.
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ATTENTION:
Even even if a business is growing, disaster could be on the horizon. There will come a time when it will hit a revenue ceiling, sales will slow, processes will become confusing, margins will shrink, and as you grow you'll just become busier, not better.
It's inevitable—unless you set yourself up for continued success by getting ready for "scaled growth". Here's the difference, the simple steps involved,and how to do it.