The single point of failure in your startup is you

The single point of failure in your startup is you

So you got your startup past the first valley of death. You found product-market fit, got some real revenue coming in, maybe even raised a round. Congratulations. But here’s a question that keeps coming back in almost every conversation I have with growth-stage founders: why does everything still run through me?

If that sounds familiar, you’re not alone. And it’s not a capacity problem, it’s an architecture problem.

The founder bottleneck

There’s a concept in systems thinking called a “single point of failure“, a component that, if it fails, takes the whole system down. In most startups between 1 and 5 million in revenue, that single point of failure is the founder. Every deal, every hire decision, every product call, it all funnels through one person. The team is waiting for approvals instead of executing. The VP of Sales keeps asking how you close deals “the way you do it.” Your inbox is a warzone.

Sound familiar? The instinct here is to work harder. More hours, more calls, more “let me just jump in because it’s faster.” But that instinct is exactly the problem.
In self-defense (yes, I also run a Krav Maga school, bear with me), one of the first things we teach is that under pressure, your body wants to tense up and fight harder. And that’s precisely what gets you hit. The first skill is learning to relax under threat so you can actually move and respond effectively. Scaling a company works the same way.

What the ones who break through actually do

After working with dozens of startups at EY, IMEC, Intel Capital, and now as a fractional CXO, I’ve noticed that the founders who successfully scale past the bottleneck tend to do three uncomfortable things:

1. They document the ugly version first. Not a polished SOP manual that nobody reads. They literally record themselves doing the thing, whether it’s selling, onboarding or making a key decision, and have someone else turn that into a repeatable process. Imperfect, but suddenly transferable. (If you want a framework for this, have a look at the “E-Myth Revisited” by Michael Gerber, still one of the best books on building systems in a business.)

2. They hire for the system, not the gap. Instead of hiring people to “help out,” they first define what the function should look like at 3x their current size, and then hire the person who can build and run that. The question shifts from “who can take stuff off my plate?” to “what does this machine need to look like without me in it?”
3. They let things break on purpose. They deliberately step out of a process and let it stumble. Not to prove a point, but to find out where the real dependency is. Usually, what they thought required a founder turned out to need a checklist.

The real question

If your company can’t function for a week without you answering questions, you don’t have a scalable business yet, you have a job with employees. The fix isn’t more hours. It’s building something that runs when you’re not in the room.

As I like to say: you are free to choose how you run your company, but you are not free of the consequences of that choice. The founders who grow aren’t the ones who grip harder. They’re the ones who learn to let go of the thing that made them successful in the first place.

What was the hardest thing you had to let go of as your company grew? Curious to hear your experiences. And if you’re stuck at this stage right now, just reach out.

Startup success is the execution of your ideas

Startup success is the execution of your ideas

 

 

Startup success is in the execution of your ideas

 

“Ideas are just a multiplier of execution” is what Derek Sivers wrote in his book “anything you want”: You can see how this plays out in the visual scoring table of idea versus execution below. To see the true value, you need to multiply the idea with the execution.

 

ideas are a mulitpier of execution

 

Investor logic supports this approach: investors usually prefer investing in an A-team with a B-idea instead of the other way around. This is because ideas are easy, turning them into a profitable business isn’t. Once you have your brilliant idea, you need to see if it sticks, check with real potential customers if it is a viable solution to a real need that they have. You will need to get out of your bubble and gather hard feedback. You will need to create a product, scrape money together, build a first version (MVP) of that product, and IF you get traction, scale the business. It sounds easy enough, but as the startup curve shows, it’s a tough process, and most don’t make it past this stage.

The Startup Curve

The Startup Curve

Once you do get to a real solution/market fit, you’re ready to start scaling. But be warned: scaling at a rapid pace comes with its own unique set of challenges. What has worked for your startup in the past may not work going forward with your scale-up. You’ll likely experience additional stress and chaos that comes with exponentially growing your company. You will need to navigate additional pitfalls like shifting focus and alignment, hiring prematurely or too late, establishing long term goals, focusing too much or too little on marketing, postponing the next funding round, and lacking of a scalable infrastructure, to name but a few.

Implementation is everything

Everything needs to fit together in order to get to a successful implementation of your growth plans. Ignace Van Doorselaere, current CEO of Neuhaus, explains thus as follows:  “If you line up five dominoes, and you push the first … so that the second, third and fourth fall – but the fifth remains standing – then the score is not 4 out of 5, but 0 out of 5. Because everything that is not implemented does not exist.”

The good news is that companies have been scaling for ages, and that there are some strategies you can build upon. One needs real implementation of the strategy and ideas, because if something isn’t implemented, it’s all wasted effort. You’ll need to take a hard look at your current capabilities and how they fit with your future aspirations, clarify your strategic priorities/opportunities/challenges, and then build an action plan to take your company to the next level.