According to a study by CB Insights, the top reason why startups fail is due to scaling too quickly or too slowly. In fact, 70% of startups fail due to scaling issues. (1)

Moreover, a study by Gallup found that 43% of employed adults in the United States are experiencing burnout at work, which can lead to decreased productivity, absenteeism, and turnover. (2)

Furthermore, a study by the American Psychological Association found that chronic stress, which is often caused by overwork and burnout, can lead to a range of health problems, including anxiety, depression, and cardiovascular disease. (3)

But the cost of scaling goes beyond just business statistics. It can also have a profound impact on our personal lives. According to a study by the National Center for Health Statistics, 32% of marriages end in divorce due to work-related stress and burnout. (4)

In fact, a study by the Harvard Business Review found that entrepreneurs are more likely to experience divorce, depression, and anxiety than the general population. (5)

The Employment Trap

When we're small, we can do everything ourselves. We're the CEO, the CTO, the marketing department, and the sales team all rolled into one. But as we grow, this approach becomes unsustainable. We start to feel like we're drowning in a sea of tasks, and our business begins to suffer.

This is what I call the employment trap. We're so focused on doing everything ourselves that we forget to build a business that can scale. We're not creating a company, we're creating a job for ourselves. And that's not what we set out to do.

Delegation is the key to breaking free from the employment trap. When we delegate tasks to others, we free up our time and energy to focus on high-leverage activities. We also empower our team members to take ownership of their work and develop their skills.

However, delegation can be challenging for many entrepreneurs. We often feel like we need to control every aspect of our business, and that delegating tasks will lead to mistakes and failures.

But the truth is, delegation is a necessary part of scaling a business. When we delegate effectively, we can build a team that is capable of handling the demands of a growing business.

The Power of Self-Awareness

Self-awareness is the foundation of effective leadership. When we have self-awareness, we understand our strengths and weaknesses, our values and emotions. We know what we're good at, and what we're not. We know what motivates us, and what drains us.

With self-awareness, we can make informed decisions about our business. We can identify areas where we need to improve, and areas where we can delegate tasks to others. We can build a team that complements our skills, and focus on high-leverage activities that drive growth and revenue.

Self-awareness also helps us to manage our emotions and stress. When we're aware of our emotions, we can recognize when we're feeling overwhelmed or burnt out. We can take steps to manage our stress, and prioritize our well-being.

The Scaling Mindset

Scaling a business requires a different mindset than building a small business. It requires a willingness to let go of control, to trust others to do their jobs. It requires a focus on systems and processes, rather than just getting things done.

When we have a scaling mindset, we're not just building a business - we're building a machine that can grow and adapt without us. We're creating a company that can scale, not just a job for ourselves.

To develop a scaling mindset, focus on building the team around your strengths. Meaning, if you are the best engineer, hire the best engineer so you can focus on learning the path to grow and sale.

The Leadership Paradox

Leadership and scaling a business is paradox, because there is no right or wrong. One can be happy and charge a high ticket for the time that is required to do a public speaking job and not go over $2M a year with a 50% EBITDA and a job that makes one travel the world for a living and love it. The other hand, to scale it requires a willingness to let go of control, to trust others to do their jobs. It requires a focus on systems and processes, rather than just getting things done, which may lose what makes the brand unique (hence many acquisitions fail)

Systems and processes are critical components of scaling a business. When we have systems and processes in place, we can ensure that our business runs smoothly and efficiently, even when we're not there.

Ultimately is a choice that only you will know what is best. Hence leadership is a paradox because in the end to scale is to make yourself not needed.

Scaling a business is not just about getting more customers or increasing revenue. It's about building a machine that can grow and adapt without us.

With self-awareness, delegation, and a scaling mindset, we can break free from the employment trap and build a business that truly scales. We can create a company that reflects our values and passions, and achieve the success we've always dreamed of.