Why startups shouldn’t scale prematurely

Edited excerpt from The most fatal mistake to avoid as a startup, a presentation I gave to a group of startup founders:

What’s so bad about scaling prematurely?

  • Low ROI, high burn rate: Sales and marketing for a product without product-market fit will suffer from low conversions and low renewals.
  • Frustration: When you don’t have product-market fit, everything seems too hard, and everyone is frustrated. See:
  • Not building permanent value: When you eventually fix your product, you’ll have to redo your sales and marketing anyway.
  • Distraction: Managing all those people will distract you from your key task — finding product-market fit. (See: The most important factor in startup success.)

Bottom line: Don’t scale before you have product-market fit. You’ll burn money, delay true success, and be miserable.

2 thoughts on “Why startups shouldn’t scale prematurely

  1. Pingback: How money can distort your startup | A Founder's Notebook

  2. Pingback: How money can mess up your startup | A Founder's Notebook

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