Happy Tuesday, Reader!

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This week, I am challenging you to sit with a question that I ask each of my clients:

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If your company’s goal is to scale (your sales, client base, etc.), why?

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I frequently find myself sitting across from founders who assume that scaling should be the goal of every company, but experience has taught me that this is not always the case.

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Way too often, the Why is the result of lazy thinking, relying on what all the other “cool kids” seem to be doing, or—at worst—ego telling us we should be or deserve to be a seven-, eight-, or nine-figure company.

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Unfortunately, the assumption that scaling is always necessary leads to a lot of unnecessary stress.

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Founders make bad decisions based on thinking, “When we’re bigger, then I can…” or, “My payday is coming, so I don’t need to get paid now.”

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If you’re a self-funded startup, running a company that’s under $250K, or even a larger company that’s feeling a little tired of always running after growth, here are two myths of scale to consider this week:

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Myth #1: If you are not growing sales, you are dying.

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This is a myth of shareholder-driven organizations that is simply not true for most small businesses.

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Yes, you might be in trouble if you're stagnant and not growing anywhere in your company. But there are many ways to grow beyond sales.

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In fact, there’s often more opportunity to grow a business’s bottom line by focusing on one of the other four pillars. Remember, sales is only ONE of the 5 Pillars of a business. Growth can happen in all five areas, not just there.​

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Myth #2: Scaling is the only way to prove you’re a “real” or “serious” business.

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It’s true that you might never be on the cover of Fast Company if you stop trying to scale, but does that really matter to you?

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There are many ways to take yourself and your business “seriously”—and to be taken seriously in the market—beyond fast growth. Take some time this week to ask yourself two key questions to get real about whether or not scale is a goal worth pursuing for you:

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1. Am I building a company I want to work in for a long time?

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If the answer is yes, what’s the rush? Is there a true business need to grow grow grow?

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If the answer is no, it’s worth asking yourself if fame or wealth is actually what you’re seeking. If so, there are more efficient ways to get it than trying to scale a fledgling startup. But if you choose this path, be clear that you need more than just a scaled company to get these things. I’ve known plenty of entrepreneurs who never achieved wealth or fame despite building very large companies.

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2. Is scaling required for my company to survive and thrive?

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Sometimes, a company really must scale to survive. This is often true in the world of products and software, where low user bases mean the product itself costs more to make than is reasonable to charge for it. In that case, scale is needed, and often quickly.

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Sometimes, scaling is not needed. I’ve worked with several home services companies and small SaaS companies that found more joy and profitability in their work when they shifted from trying to get bigger to trying to be more sustainable at the size they already are. In fact, most community-based companies we work with find they are able to increase the leadership team's income when they shift from a growth-at-all-costs to a sustainability mindset.

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Finding joy and profitability sometimes requires pivoting from trying to be bigger to trying for sustainability.

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Yes, some companies must scale to survive (think consumer goods), but that’s not true for most small companies. Many are deceived by the myths of scale. At best, they are disappointed when they achieve it. At worst, the anti-sustainability stance of scaling causes over-leveraging resources, leading to a premature company collapse. You can choose differently.

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Are you interested in learning more about shifting from growth mode to sustainability mode? Reply to this email, and let’s talk.

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Until next time,
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Renia C.

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