Top 5 Mistakes Growing Companies Make (And How to Avoid Them)

Scaling your company? Avoid these 5 common mistakes growing businesses make—and learn how to grow smarter, not harder.

Scaling a business isn’t just about adding more people or bigger clients, it’s about building something that doesn’t collapse under its own weight. After nearly two decades helping a company grow from 10 people to 500, I’ve seen what works and what blows up spectacularly. Here are the 5 mistakes I see growing businesses make over and over again and how to avoid them.

1. Hiring Too Fast (or Too Cheap)

When sales are squeezing in, it’s tempting to hire anyone with a pulse—or worse, someone underqualified to “save money.” The result? Bloated payrolls, culture issues, and endless fires to put out.

Do this instead:

Hire deliberately. Focus on quality over quantity. Write clear role descriptions before you post the job.

🔗 Read this: The True Cost Of A Bad Hire (Forbes)

2. Overcomplicating Processes

As teams grow, so does red tape. Suddenly, a simple decision needs 4 approvals and 3 meetings.

Do this instead: Streamline. Map out workflows and cut anything that doesn’t add value. (Hint: if nobody can explain why a step exists, it probably doesn’t need to.)

Watch: How to Systemize Your Business to Work Less and Make More

3. Not Investing in Leadership

Founders and early managers often assume they can “wing it” as leaders. But leadership isn’t instinct. It’s a skill.

Do this instead: Train your leaders. Teach them how to coach, delegate, and make tough calls. Your culture depends on it.

Read this: "Leadership Training Can Pay Huge Dividends for Midsize Companies" (Harvard Business Review)

4. Ignoring Culture (Until It’s a Dumpster Fire)

At 10 people, culture happens naturally. At 50+, it needs intention. Otherwise, silos form, trust erodes, and your best people leave.

Do this instead: Define your values early, and live them. Build systems for feedback, recognition, and accountability.

5. Thinking You Don’t Need Outside Help

Founders often resist bringing in a consultant because “we know our business best.” But when you’re in the weeds, it’s hard to see the big picture.

Do this instead: Bring in fresh eyes. A good consultant will help you spot bottlenecks, simplify operations, and scale smarter.

Watch: Why Every Growing Business Needs a Business Consulting Partner

Ready to Scale Without the Chaos?

I help businesses design systems and strategies that actually work—so you can grow without burning out.

Book your free consultation here.

Let’s get your business running like the one you dreamed of building.