Premature Scaling: Why It Kills Startups and How to Avoid It

The 2012 Startup Genome analysis, which investigated 650 Internet startups, found that “premature scaling is the most common reason for startups to perform poorly and lose the battle early on by getting ahead of themselves”. Similarly, a complementary report on 3200 high growth startups revealed that “74% of high growth internet startups fail due to premature scaling”. Premature scaling, thus, is a startup killer. But what, exactly, is premature scaling? And how can you prevent it from leading to the death of your company? In this article I’ll provide detailed answers to these two questions as well as outline various key strategies for successfully growing your business.

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