Common Mistakes Founders Make When Scaling Revenue
Here are some common mistakes I see when companies are scaling from $1m to $10m in ARR:
- Chasing the Shiny Penny. Trying to enter new market segments or verticals where there is zero traction. It’s important to focus on areas where you already have some success before venturing into completely new territories.
- The “I Give Up” VP Hire. Hiring a VP out of desperation rather than based on merit and belief in their abilities can lead to wasted resources and hindered growth.
- Micromanaging Your Management Team. Trusting your managers to do their job is key in scaling your company. Micromanaging only creates frustration and hinders progress.
- Bad operational model / misunderstanding the burn rate. Properly modeling your business strategy is crucial as you scale to avoid unexpected expenses and a high burn rate.
- Getting too comfortable with High Win Rates. A high win rate can be a sign of not reaching for new opportunities. As you scale, your win rate should decrease as you aim for larger deals and markets.
- Not focusing on NPS and CSAT. Keeping your customers happy and satisfied is crucial for growth. Monitoring NPS and CSAT scores and improving them consistently is essential for continued success.
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