📈 Why Scaling Too Fast Nearly Broke My Business

Why reckless scaling can drain your profits + and what to do instead.

Every entrepreneur dreams of scaling.

  • Big team

  • New locations

  • Revenue through the roof

It’s the story we all chase.

Growth equals success, right?

That’s what I always thought, until I realized:

Scaling too fast can kill your business.

From the outside, my business looked great. But I knew we were losing money.

Let me tell you how I scaled too fast, the lessons I learned, and how you can avoid my mistakes:

I started Greenbox Storage when I was a junior at Dartmouth College.

We had early success and started expanding.

Everything was working, so I kept up the momentum.

We grew from 6 branches to 18 in a single year.

Sounds great on paper. But it was too much, too fast.

Our margins collapsed.

We lost money at a third of our new branches.

And I learned the hard way that growth at all costs could actually destroy the business you’ve built.

Scale Smart Instead of Fast

Use these 4 tips if you think your business is ready to scale.

1. Validate before you expand

Just because something works in one market doesn’t mean it will in another.

  • Run small pilots

  • Test demand

  • Don’t bet the whole farm until you see traction

2. Prioritize quality hires

A bad hire drains more time and cash than no hire at all.

Wait for the right person, even if it slows you down.

Bonus tip: 

Spend some time designing a hiring process that works for your business.

It will save you hours down the road.

3. Protect your margins

Top-line revenue feels exciting, but profit is what keeps you alive.

Set clear profit targets for every new venture. If it doesn’t pencil out, don’t scale it.

4. Build systems first

If your processes bend at 100 customers, they’ll collapse at 1,000.

Document, delegate, and automate before you step on the gas.

The Takeaway

The truth is, growth only matters if it lasts.

And if it makes you money.

Scaling means nothing if your margins vanish.

The same is true with content.

You don’t need to scale by posting everywhere.

You need consistent, high-quality content that compounds over time.

That’s what we help entrepreneurs build at FounderBrands.

So if you’re looking to scale:

  • Watch the numbers

  • Make corrections early

Don’t burn cash just to brag you’re “growing.”

Whenever you’re ready, there are 4 ways I can help you:

  1. FounderBrands: Build your online identity. Become the authority figure in your industry.

  2. Promote your business to 1,800+ subscribers by sponsoring my newsletter.

Cheers,

Collin Rutherford

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