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5 Scaling Mistakes That Killed Promising Startups
StartupsFailure AnalysisSeries BScaling

5 Scaling Mistakes That Killed Promising Startups

Alex V.
5 min read

1. Premature Scaling

The classic killer. Hiring a massive sales team before you have Product-Market Fit (PMF) just burns cash. You can't force PMF with headcount.

2. Ignoring Unit Economics

Growth at all costs is over. If your LTV:CAC ratio is under 3:1, you aren't growing; you're dying. You need to scrutinize your payback periods. If it takes 18 months to recoup ad spend, your cash flow will strangle you.

3. Cultural Dilution

'Move fast and break things' works for 10 people. At 100, it creates chaos. You need to codify your values and hire against them. Bad hires are toxic.

4. Feature Creep

Building what *one* big enterprise customer wants instead of what the *market* wants. You become a dev shop for that one client, and your product loses its focus.

5. Under-Pricing

Most startups are too cheap. You are signaling low value. Raise your prices. It filters out bad leads and funds better support.

Conclusion

Scale is a magnifier. If your process is broken, scaling just breaks it faster. Fix the foundation first.