The Art of Scaling: Why Growth Stage is Easier Than Startup Phase

Getting to your first million in revenue is infinitely harder than growing from one million to ten million. After founding multiple companies and investing in dozens more, I've learned this truth the hard way.

The Startup Phase Challenge

Starting a new business is like trying to push a boulder up a hill.

Everything is a challenge - from finding product-market fit to securing your first customers.

At Full Scale, our early days were filled with fundamental questions:

Would developers in the Philippines work well with US clients?

Could we build a sustainable business model?

Would clients trust us with their development needs?

Why Growth Stage Wins

Sean Beckner, a successful serial entrepreneur, shared a profound insight during our recent conversation: "Some people are really good at launching a business. They're really terrible at growing it... Most of the time with companies, they launch it. They're really good from going to say A to D or E, right? And then they start getting in that phase of, okay, like I'm doing well. I'm making good money, right? I'm successful."

The growth stage has distinct advantages:

• Proven business model

• Existing customer base

• Established processes

• Market validation

• Revenue predictability

The Real Numbers Tell the Story

In our podcast conversation, Sean shared how he transformed companies during their growth phase. With Naturello, he took a business from $3.5 million in EBITDA to $12 million in just two years. This type of scaling is nearly impossible in the startup phase.

Why I Chose to Buy Rather Than Start Again

Here's a personal example: When I had the opportunity last year, I chose to buy out my business partner at Full Scale rather than start a new SaaS company. Why? Because I knew that growing an existing successful business is far easier than starting from scratch.

The Three Key Advantages of Growth Stage

1. Proven Product-Market Fit Having real customers paying real money removes the biggest risk of any business. You're no longer guessing - you know there's demand for what you're offering.

2. Existing Revenue Base Sean put it perfectly in our conversation: "If you're profitable, you've got that optionality." You can reinvest profits, take calculated risks, and grow without the constant pressure of running out of cash.

3. Established Team and Systems You're not building the airplane while flying it anymore. You have processes, systems, and people who know how to execute.

The Smart Way to Enter Growth Stage

During our conversation, Sean revealed his strategy for finding growth-stage opportunities: "I found this in all my acquisitions... entrepreneurs, founders, people have different skill sets. Some people are really good at launching a business. They don't have the skills for that next phase."

This creates opportunities for entrepreneurs who are skilled at scaling. You can:

• Buy existing businesses

• Partner with founders

• Invest in growth-stage companies

Avoiding Growth Stage Pitfalls

Growth stage isn't without challenges. The key is focusing on what matters:

• Maintaining quality while scaling

• Preserving culture during expansion

• Staying close to customers

• Managing cash flow

The Path Forward

If you're in the startup phase now, remember that your goal should be getting to growth stage as quickly as possible. If you're looking for opportunities, consider that buying or investing in existing businesses might be smarter than starting from scratch.

The Bottom Line

The startup phase is glorified in tech culture, but the real opportunity lies in the growth stage. As I've learned at Full Scale, once you have a proven model, scaling becomes a matter of execution rather than exploration.

Next time you're thinking about starting something new, ask yourself: Would I be better off growing something that already works?