What stage are you at? Are you acting like it?
How Startup Leaders and Employees Should Act at Each Growth Stage
Growing a startup is a wild ride, and the way you operate at each stage of revenue growth will determine your long-term success. Every phase requires a different mindset, level of organization, and investment in systems, people, and processes. Here’s how you should think and act as your company scales.
$0 to $300K: The Mom-and-Pop Corner Store Stage
At this stage, you are a small, scrappy business. Act like it.
Cash flow is king – Focus on cash in and cash out. Your priority is staying alive and generating enough revenue to keep moving forward.
Sell, sell, sell – If it doesn’t bring cash back fast, it doesn’t make sense. Avoid long-term bets and focus on immediate revenue.
Keep things lean – Avoid unnecessary expenses. Only spend on essentials that directly help you grow.
Know your customers – Build strong relationships, get direct feedback, and iterate quickly.
Do the work yourself – You’re wearing multiple hats, and that’s okay. Don’t overcomplicate things with too many hires or processes yet.
Your main goal here? Survival.
$300K to $700K: The Young Adult Stage
Your business is growing, and it’s time to start organizing yourself.
You’re still a startup – Stay agile and flexible. This is when you learn the most about what works and what doesn’t.
Start systemizing – Implement light processes to reduce chaos but don’t slow yourself down.
Refine your offering – Understand what’s selling, who your ideal customer is, and double down on it.
Start delegating – You can’t do everything alone anymore. Begin hiring strategically. Build robust self-serving teams. Don't be the bottleneck!
Focus on customer success and eliminating any churn risks…
Your main goal here? Learn and adapt quickly while keeping momentum.
$700K to $1.2M: The Foundation Stage
This is when you lay the groundwork for exponential growth.
Plan ahead – Forecast demand, capacity, and hiring needs.
Invest in processes – Use SaaS tools, integrate systems, and start automating repetitive tasks.
Scale your operations – Move towards a self-serve model that reduces dependency on manual work.
Expose your team to sophisticated leadership – Hire or bring in experienced advisors to set the stage for long-term success.
Get your growth algorithm right – Understand what’s fueling your revenue and find ways to scale it efficiently.
Your main goal here? Build a strong operational foundation for future scale.
$1.2M to $2.5M: The Takeoff Stage
Welcome to the big leagues—well, at least the entry point.
Balance entrepreneurship with structure – Keep the startup spirit alive, but invest in business administrators who can manage growth.
Hire experienced operators – Bring in people who have managed teams, implemented systems, and navigated scaling before.
Strengthen leadership – Your early hires may not be the right leaders for this stage. Be prepared to level up your team.
Avoid common scaling traps – Poor processes, bottlenecks, weak hiring, and lack of financial control can kill your momentum.
Your main goal here? Manage the complexities of growth without losing agility.
$2.5M to $5M: The Well-Oiled Machine
By now, you should be operating a robust system that allows you to scale with confidence.
Enterprise Resource Planning (ERP) – Implement strong financial and operational planning tools.
Customer satisfaction is critical – Your reputation and retention rates determine your long-term success.
Focus on competitive positioning – Start thinking about how to differentiate and stay ahead.
Shift from firefighting to proactive growth – With strong processes in place, you can now focus on expanding rather than fixing internal problems.
Your main goal here? Optimize operations and prepare for aggressive growth.
$10M to $25M: The Private Equity Ready Stage
At this stage, you’re officially a big company and have serious options on the table.
Bankability – Investors, banks, and private equity firms will take you seriously.
Mergers & Acquisitions (M&A) – Consider acquiring smaller companies to expand market share, absorb talent, and gain intellectual property (IP).
Exponential growth is possible – You can now add chunks of $5M+ revenue at a time.
Strengthen leadership & governance – Your company needs a structured executive team and board oversight.
Your main goal here? Think like a serious player—because you are one now.
$25M to $50M: IPO and Global Expansion
The game changes. You’re no longer just a fast-growing startup; you’re becoming a true brand in your sector.
IPO? – If the conditions are right, an initial public offering (IPO) might be an option.
Expand internationally – Start opening offices and hiring globally.
Think long-term – Focus on sustainability, brand reputation, and global competitiveness.
Your main goal here? Scale beyond your initial market and establish a dominant brand presence.
$50M to $150M: You're Balling
By now, you’re playing in the major leagues.
Big moves only – Acquisitions, global partnerships, and market dominance strategies.
Top-tier leadership – Your team consists of industry veterans and specialists in scaling multi-million-dollar businesses.
Diversification – You may start expanding into adjacent markets or launching new product lines.
Your main goal here? Maintain dominance and keep growing without losing efficiency.
$150M to $500M: Your Mother’s Mega Proud
This is the empire-building stage.
Massive operational efficiency – Process excellence at scale.
Industry influence – You’re shaping trends and driving market direction.
Global recognition – Your brand is well-known and respected.
Your main goal here? Becoming one of the defining companies in your industry.
$500M to $1B: The Billion-Dollar Club
You’ve made it. The journey from a small corner store to a billion-dollar powerhouse is complete.
Legacy building – What’s next? IPO, further acquisitions, or maybe even unicorn status?
Massive capital leverage – You now have the resources to make industry-shaping moves.
A leadership pipeline – Your company must sustain itself beyond your direct involvement.
Your main goal here? Shape the future of your industry while keeping innovation alive.
Final Thoughts
Growth is not just about hitting revenue milestones—it’s about adapting your mindset, team, and operations at each stage. The best founders and employees understand when to hustle like a startup and when to operate like an enterprise.
Where is your company right now? And more importantly, are you acting accordingly?
