How to go from €100,000 to €1 million per year: The key steps to successfully scale the phase

The scaling phase is the moment when a company moves from a craft to a system. It is a crucial and delicate stage that can determine the success or failure of the company. It is essential to understand the issues and to prepare methodically to avoid turning what could be exponential growth into an imminent disaster.

Why is scaling so risky?

Before we get into the practical steps, it’s important to understand why scaling is so risky. First, scaling creates immense structural stress. An organization that isn’t prepared can easily see its internal processes collapse under the pressure of increased activity. Plus, putting the wrong people in the wrong places can seriously hamper your ability to operate effectively. Finally, amplifying your company’s strengths and weaknesses can reinforce what’s working, but it can also accentuate what’s not.

All of this leads to a simple conclusion: having money, a selling product, or a vision is not enough to be ready to scale. Scaling is much more demanding than simply increasing volumes.

The essential steps to succeed in your scale

To successfully scale, you need to follow a five-step plan. This plan does not guarantee success, but it maximizes your chances of achieving it.

1. Product/Market Fit: Make sure your product has truly found its market.
• Product/Market Fit (PMF) is the foundation of all growth. It is not enough to have sales; your product must meet a clear and consistent market demand.
• The indicators to monitor are:
• Retention: What is your churn rate?
• Acquisition: A ratio of ⅓ Inbound, ⅓ Outbound, ⅓ Referral indicates a strong PMF.
• Conversions: Is your conversion rate increasing?
2. Unit Economics: Check that your economic model is functional
• Before scaling, make sure your business model is solid. Financial metrics like cost per lead (CPL), customer acquisition cost (CPA), profitability (EBITDA), and lifetime value (LTV) are essential indicators to monitor.
• A healthy LTV/CAC ratio is crucial: if your acquisition cost exceeds the value you derive from each customer, your model is doomed to fail at scale.
3. Cashflow: Control your financial flows
• Cash flow is the backbone of any growing business. You need to carefully monitor the speed at which money flows in and out of your accounts.
• For this, it is vital to have the right tools in place and to surround yourself with professionals who can help you maintain a balanced cash flow. A popular phrase in this field sums up the importance well: “Cash is king, cashflow is queen”.
4. Recruitment plan: Anticipate your staffing needs
• Rapid growth often requires team building. But hiring without a clear plan can be as dangerous as not hiring at all.
• Establish a scorecard for each key position, defining expected results, required skills, and how these positions fit into the overall organization chart of the company.
5. Roadmap: Establish a clear roadmap
• Your roadmap must integrate all the projects in a coherent manner. Each objective must be linked to the others, with a clear vision of how they fit together to form a harmonious whole.
• Using tools like Whimsical can help you visualize this roadmap and ensure nothing is left to chance.

Tips to Avoid Common Pitfalls

Now that you have an idea of ​​the steps to follow, here are some tips to avoid common mistakes:

1. Never believe you are immune to mistakes. Always question your certainties and remain humble in the face of challenges.
2. Take your time. The scale is a marathon, not a sprint. Don't rush.
3. Document everything. Every success and every failure is a learning opportunity for the future.
4. Internalize key skills. Only delegate what you fully understand.
5. Stay focused. Your most valuable resource is your ability to focus on essential priorities.
6. Clearly define your MVP (Mission, Vision, Purpose). This clarity will help you align your team and stay on course.
7. Never obsess over a single metric. Goodhart's Law reminds us that when a metric becomes a target, it ceases to be a good metric.

Scaling is not an easy step, but when well prepared, it is an opportunity to take your business to the next level. By following these tips and approaching each step methodically and wisely, you maximize your chances of succeeding where many fail. Only time will tell if your house of cards will turn into an impregnable fortress or collapse under its own weight. So take your time, follow the plan, and above all, never forget that scaling is all about discipline and preparation.