Top Pain Points When Scaling Business Operations & How to Fix Them

By Marko Vucilovski

Is there even such a thing as ‘scaling your business too fast’? 

Yes. Here’s why.

Every leader dreams of growth. In business, fast growth is much like hitting the jackpot. 

One month, you’re struggling to get clients, and the next, you’re struggling because you have too many and don’t have the workforce to cover all that demand. You’re all over the place. You’re hiring new people, adding new products, watching revenue go up, and being exceptionally proud because you made this happen. 

It’s all very exciting until you look at the other side of the situation. 

You know, the less glamorous one, the one nobody likes to talk about. Scaling too fast can be just as problematic as it is rewarding. In fact, it can completely ruin everything you worked for. The signs show up quickly and, once they do, you’re (most likely) already in a pickle. It’s easy to mistake speed for progress, but the truth is that’s what makes many leaders fail.

But don’t worry, it’s not all bad news. This article will cover these 5 top pain points scaling operations business leaders face; mistakes can be avoided if you’re aware of them and know what to do.

5 Common Operational Pain Points When Scaling

Here are the most common mistakes people make when scaling. 

Hiring Too Many People Too Fast

When leaders see revenue go up, their first instinct is to hire more people. They’re under pressure to create bigger teams so they can get more opportunities, so it’s easy to see why many make this mistake. 

But here’s the problem. 

Unless you have a clear plan when it comes to hiring, you’re at risk of hiring people who don’t have the ‘right’ skills and having your payroll costs balloon in a snap. So, instead of speeding things up, you end up with a team that’s slow to make decisions, where people are confused about who does what.

Replacing an employee can cost a business 0.5-2 times the annual salary. – Gallup

The right way to do this is to hire slowly and with intention. You want to bring in more people, but you want those people to fit in your business truly, and you also want them to know exactly what their responsibilities are right from the start.

The avg. CPH is $4,700 (USD). – SHRM

Neglecting Company Culture

As your company scales, you might start to assume that the culture will take care of itself, but that would be a big mistake.

Toxic culture is approx. 10.4 times more predictive of attrition (e.g., resignations, retirements, layoffs, dismissals) than pay. – MIT ‘Sloan Management Review’

Growth shouldn’t pull your attention away from values, but sadly, that’s what often happens. You might find that your new hires feel disconnected and that different teams are all doing their own thing, on their own. Over time, this will make employees frustrated, and it’ll cause high turnover. 

If you want to scale successfully (and you do!), you have to actively reinforce culture through onboarding and, most importantly, by setting an example yourself every single day.

Businesses with a high number of people quitting have about 1 in 5 fewer quits; businesses with a lower number of people quitting have about 4 in 10 fewer quits. By improving employee engagement, you can cut turnover. – Gallup

Underestimating the Importance of Financial Planning

False sense of security is a very dangerous thing in business, and it’s exactly what can happen with early profits. Just because money is coming in right now doesn’t mean you’re all set for the future. Scaling is expensive because you have bigger payrolls, expanded operations, and higher overhead… More costs in general.

Post-mortem data shows 29% of all failed startups cited ‘ran out of cash’ as the primary reason. – Founders Forum Group

And if you haven’t planned for them, your cash flow will dry up. Countless companies have gone under because of this very reason. 

If you’re going to scale, you need a system to manage your growth. That means – forecasting and emergency funds.

Sacrificing Quality for Speed

If your priority is speed, you’ll find yourself cutting corners where you shouldn’t, and no good can come from that. 

Speed without quality equals failure every single time, and scaling loses all meaning. 

Companies that strengthen quality systems have cut the cost of nonquality by up to 35%. – McKinsey

For example, say you have a construction company in Virginia and your project demands a deck, for which you need an outside hire. You know there’s a high-quality deck builder Cross Plains TN residents use because of their superb quality and reputation; but they’ll take a while to get it done, so you hire one closer to you that can do it faster.

The result? A livid client and damaged reputation. Quality is non-negotiable, even on a tight deadline.

Not Paying Attention to Customer Feedback

You’re so focused on growth, so sometimes, building teams and systems starts to be more important than listening to your customers. But your customers are who matter most, and if you don’t pay attention to their feedback, how can you provide them with products and services they want?.

59% customers leave after 2+ bad experiences; 17% after only 1 (U.S.). – HubSpot

Scaling has to include constant listening. 

Do surveys and talk to your customers directly. Not only will this show them you care, but you’ll also get information that will benefit your business. 

Conclusion

Scaling is exciting, and being able to scale is 100% something to be proud of. 

Businesses are failing left and right, so if you’re able to make yours grow, that’s a huge accomplishment. But you need to remember that scaling isn’t a rat race, so don’t do it in a frantic, careless way. Every step has to be calculated – every new investment and every new hire. Avoid the above top paint points scaling business operations leaders commonly face.

Otherwise, all you’re relying on is crossing your fingers and hoping positive thinking will solve your problems.

Marko Vucilovski is a writer and content strategist with over a decade of experience. Marko focuses on digital economic trends, workplace culture, remote work, and leadership trends, making sure to capture all the new and informative data and tailor it towards audiences. When he's not getting published by authoritative websites, he likes to play board games and drive off-road!