Posts Tagged ‘Startups’

Premature Scaling and Killing Your Startup

Thursday, September 1st, 2011

I was reading some random blog link I got on Twitter that had the great title of “Premature Scaling Kills Startups – The Startup Genome.” At first I thought it was going to be a post about the Human Genome. I guess my recent post about the Human Genome and EMR might have influenced that thought. Turns out, the post was talking about the “genomic data” of a startup company. Something I actually love more than the Human Genome.

You should go read the whole post, but his list of bullet points at the end hit me:

  • The team size of startups that scale prematurely is 3 times bigger than the consistent startups at the same stage
  • 74% of high growth Internet startups fail due to premature scaling
  • Startups that scale properly grow about 20 times faster than startups that scale prematurely
  • 93% of startups that scale prematurely never break the $100k revenue per month threshold

He also provided 2 summary items which help you get the most out of the bullet points above. I’d describe them simply as:

  • Scale Consistently
  • Constrain Your Scaling As Long As Possible

Great advice!