February 21, 2025
Story [#31]

How Not to Break Yourself While Scaling Your Business.

Or minute of Hidden Traps.

Business growth is every entrepreneur’s dream.

More clients, more sales, more money.

But in practice, rapid scaling can hit you like a crisis.

Sometimes, it’s even worse.

The biggest trap?

You can’t just scale one part of your business – you have to scale everything.

Your value delivery chain is a single system – there are no isolated pieces.

Boosting sales feels like a win.

But here’s what actually happens:

  • More sales → more people to hire.
  • More orders → more resources, more equipment.
  • More customers → support starts drowning.
  • Higher revenue → accounting turns into chaos.

Every piece is connected.

If one area grows, the rest will have to catch up.

That’s the hard truth of scaling.

There’s the obvious side – sales, hiring, production.

But it’s the invisible pressure that can break you.

Technical Infrastructure

Today, the abundance of digital solutions and fierce competition have made infrastructure costs less of a burden on operational expenses.

Well, at least for businesses where infrastructure isn’t part of the core production process.

But when you don’t keep an eye on your infrastructure, it tends to grow wild.

And the worst part?

It often crashes right when you’re scaling, under peak load.

This is especially painful for SaaS platforms and online services.

I’ve seen startups hit a growth spurt and end up burning all their profits just to keep their systems from falling apart.

The reasons are always the same:

  • Poorly designed infrastructure.
  • Architectural mistakes.
  • Technical debt.

That’s how your regular $200 server bill can suddenly spike to $20,000 – overnight.

Same story in physical businesses.

Rapid growth means rising costs across the board:

  • Procurement.
  • Production.
  • Logistics.
  • Storage.

And that’s not all.

Your supplier contracts might include:

  • Overcapacity fines.
  • Higher fees.
  • Stricter terms the moment you exceed your usual orders.

“Growth Will Pay for Itself, Right?”

Unfortunately, not always.

When growth is poorly managed, expenses can blow past the revenue you thought was guaranteed.

I know this from personal experience.

In IT outsourcing, we often chased big projects that looked like jackpots.

But it required a large team of developers.

If we couldn’t hire fast enough, we turned to recruitment agencies.

Their fees?

One to two monthly salaries per developer. Sometimes even more.

End result – losses.

We held on, afraid to lose the client and damage our reputation.

But we paid for it by working at a loss.

Why?

Because our hiring and recruitment processes weren’t ready for peak demand.

Growth Isn’t Just Celebration. It’s Risk.

Explosive growth can break you as badly as a collapse.

That fantasy where business scales itself while you sip coffee and count cash?

That’s a myth.

Growth = Preparation.

It’s a shift to a whole new system level.

It’s an invisible but massive workload.

Often – it means extra investments.

This isn’t about sales forecasts or marketing strategies.

This is your operational plan.

With real resource calculations behind it.

So your team doesn’t burn out working 18-hour shifts and you’re not getting "love letters" from data centers and partners.

If you sell digital products, online courses, or subscriptions, you probably use:

  • Stripe, Gumroad, or similar payment platforms.
  • Platforms to host your content.

When your revenue is a few thousand dollars, a 10% fee feels like nothing.

But when you scale to tens or hundreds of thousands – that fee turns into serious profit loss.

That’s when you realize – it’s big money.

And you start migrating to a new platform.

Which means:

  • Switching payment systems.
  • Losing some customers along the way.
  • Burning time and money setting up the new system.

Small businesses often underestimate the importance of picking the right tools for:

  • CRM.
  • Knowledge bases.
  • Project management systems.

What worked at the start can, during growth, lead to:

  • Time drain.
  • Productivity killer.
  • Cost trap as you scale.

SaaS platforms know this game well:

  • They lure you in with low prices or free plans.
  • Once you grow, you’re locked in and fully dependent.
  • Leaving is expensive – so most just pay up and suffer quietly.

When you’re small, you son’t think about it much.

You’re just trying to make it through today.

And survive tomorrow.

But even if you don’t dream of becoming a corporation and you’re happy with your current size – plan for growth.

It doesn’t have to be about getting bigger.

It can be about getting better.

What Will Keep Growth from Crushing You:

  1. Audit Your Infrastructure:
    • What tools are you using?
    • How much do they cost?
    • What’s critical, and what can you cut?
  2. Create a Knowledge Base:
    • Keep a list of all services, platforms, and subscriptions.
    • Who’s responsible? What are the fees? Any risks?
  3. Think Long-Term:
    • What happens if we double in size?
    • Which costs will grow?
    • What could turn into a bottleneck?
  4. Budget for Growth Costs Early:
    • It’s cheaper than getting a "surprise bill" later.
  5. Make a Checklist:
    • What to review quarterly?
    • Which services need reassessment?
    • Where can we optimize?

This gives you control.

And lets you scale without the fear that growth will one day bury you.

Disclaimer.

Every business has its nuances, and every founder has their unique context and resources. Whether or not my advice applies depends on your situation, experience, and needs. But one thing is universal—use your brain.

Think about how to apply the advice in your context before acting.

Your way.

What Tools Should Small Businesses Use and Why

Businesses today are drowning in tools.

CRMs, task trackers, customer platforms, marketing solutions, micro-SaaS automations.

Every day, something new.

Easy to get lost.

So how do you pick what you really need?

There’s no one-size-fits-all answer.

It always depends on:

  • Your business stage.
  • Current needs.
  • Growth plans.
  • Industry specifics – whether you run a service business, production, digital products, or a physical product.

But there are a few universal rules for choosing the right system:

1. Keep It Simple

Your team has to actually use the system.

If it’s clunky and needs an engineer to figure out – forget it.

The system’s value drops to zero – because no one will bother using it.

2. Cost Should Make Sense

Pay for what you use.

If you’re using 20% of a premium platform, you’re probably wasting money.

3. Adaptability

If it’s not built for your niche, it should at least be flexible enough to adapt to your processes.

4. Integrations and API

No tool should stand alone.

Look for:

  • Built-in integrations.
  • Or API access to connect it to your automated workflows.

If it can’t integrate, it can become a bottleneck and force you into unnecessary manual work.

5. Transparent Pricing and Scalability

Know the cost when you:

  • Double your size.
  • Grow 5x.
  • Hit 10x.

Hidden jumps or vague pricing?

That’s a future headache.

6. Reliable Provider

If the tool is mission-critical, pick a provider with a track record.

Not a startup that might vanish in 6 months.

Paying extra for stability is cheaper than rushing to migrate your data after the “We’re shutting down” email.

Micro-SaaS tools work well for non-critical tasks, where losing data or temporary downtime won’t break your business.

Key Takeaway:

Don’t overcomplicate things.

  • If you need a niche solution, get it.
  • Everything else should meet these tests:
    • Simple for the team.
    • Scalable.
    • Reliable.
    • Integratable.
    • Flexible.

If it doesn’t make life easier – you don’t need it.

And one more thing.

A quick video I made on the topic. Might be useful.
People are obsessed with control.
Yet the only thing we truly control is ourselves.

We can’t steer what happens around us.
But we can always choose how we respond.

We hold power over our own mind.
Realize this – and you’ll find strength.

From the journal of Nyx Thorne.
That’s all for today. See you next week.
- Eugene

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Autjor avatar

Hi, I’m Eugene.

I quit my job just before my first kid was born. Started an agency from my bedroom. Leap of faith.

20 years later — 80 people, 3 continents, 7-figure revenue.
But for many years, I was the bottleneck in my own business.

Now I help founders escape the same trap. Through systems that actually work, not theory.

I write weekly: operational war stories, decision systems, and lessons learned the hard way.

For founders who want to build without burning out.

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