The Key To Scalability: How to Work On Your Business vs. In Your Business

Posted: March 10, 2023 | Updated: March 14, 2023

One of the most typical pieces of entrepreneurship advice given to young founders is working on vs. working in business. Michael E. Gerber provides one of the greatest explanations of the mindset required to succeed in this endeavor.

In other words, as a founder, it is your responsibility not only to produce a great product or service but also to create a fantastic system for manufacturing and to distribute that product or service to customers, allowing you to plug people into it easily and, equally important, plug yourself out of it.

Second, the people in charge are responsible for making the vision a reality by utilizing people and systems. However, management becomes critical once you’ve moved past the research and validation phases and into the efficiency and growth startup phases.

How to Work on Your Business

Realizing this is especially important for tech companies because most stakeholders expect these businesses to develop quickly.

Scaling an IT product is less difficult than establishing a physical product. Still, if you’re the creator of a tech startup, don’t let this give you false hope. Many components of your business will be difficult to quantify. Yes, you will not require new facilities for manufacturing. However, you will need to greatly expand your personnel to enhance your sales and marketing efforts, growth potential, customer support, and so on.

You are in big trouble if these business components solely depend on your abilities. If you fall short in any of these areas, your company’s growth potential will be stifled.

It’s far easier said than done: your firm’s success in the early stages is mostly determined by your abilities and work ethic. The issue is that your personal experience and qualities are not quantifiable.

Scaling Your Business


During the growth stage, your company’s performance is measured by how successfully it can raise revenue and market share. You’ll be taking on new customers and tapping into future ones to make more, and this growth will be sustainable for the first few years.

Instead of focusing exclusively on sales, expanding businesses are more likely to challenge the competition and become market leaders. You can accomplish this by carving out a niche for your product or service, which entails understanding customer needs and communicating effectively.


To keep up with growth, a growing company must hire more people. During this stage, you will assemble your team to guarantee that the major tasks are completed. As those activities become more sophisticated, you’ll discover that more people (and larger facilities) are necessary.

On the other hand, a scaling business will have taken on additional workers throughout the boom era. However, scaling is a balancing act between bringing on expertise and running a tight team. Ideally, you’ll hire a few inspiring folks who can get things done quickly.


As your leadership team increases, you must learn to let go of day-to-day decision-making. Two critical parts to building that Leadership team are hiring effectively and training well. We are frequently in such a rush for talent that we hire the first individual who can do the job.

However, the reality is that the perfect person must embody the company’s values and possess all of the competencies required, not only having experience in a single field. An even worse blunder is our teams’ lack of quality training. Your leadership must progress at a faster rate than the firm.


As your company expands and you take on more clients and orders, you’ll improve your workflow to improve efficiency. The founder will need to delegate greater authority and promote some team members to managerial positions to guide the others.

Scaling, on the other hand, entails more than just streamlining workflows; you must consider the larger picture and ensure that all processes are systematized for optimal productivity. Scalability requires your team to have the correct mindset.

Marketing effectiveness

Marketing is crucial to attracting the proper customers, partners, investors, and talent. Too often, the marketing team is viewed as an extension of the sales team. Effective marketing, on the other hand, can assist attract the right customers rather than focusing on growth and profitability. Furthermore, remember that marketing is utilized to recruit partners, investors, and personnel. Consider it was scaling up your relationships!

When is The Right Time To Scale

“Should I scale or should I grow?” you may be wondering. It’s a difficult decision, 74% of firms fail due to early scaling, so you must choose the best time to leap. There are a few significant indicators that your company is prepared:

  • When personnel is unable to handle the workload. Even if you have a healthy cash flow as a result of repeating sales, you may find yourself turning down new possibilities or disappointing clients because your team is overburdened
  • When long-term corporate objectives are out of reach, you may have exceeded your short-term objectives, but what about the long-term? If long-term success appears unachievable (or extremely difficult) due to a lack of the necessary people or resources, it is time to consider scaling
  • When the number of leads increases substantially. An increase in leads is fantastic news, but if you leave your potential customers hanging, those leads will vanish quickly

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