One of the most common things I come across when I’m working with growing businesses is not a lack of hard work, capability or ambition. Actually the opposite.
Nearly all founder-led businesses start with energy, commitment and a strong determination to succeed. Everyone mucks in, roles overlap and decisions are made quickly. That flexibility is exactly what allows a company to grow in the early years.
But as the business grows, something begins to happen.
The structure that worked when there were ten people struggles when there are twenty, thirty or fifty.
Decisions that used to take seconds now take longer.Departments begin to operate slightly independently of each other….aka SiloCommunication becomes much more difficult.And gradually, lots of things begin to find it’s way back to the business owner.
I hear founders say things like:
“Everything still seems to land on me.”
Or:
“I feel like I’m constantly firefighting.”
It’s not because people in the business aren’t capable. In reality, most teams are working incredibly hard. The issue is usually that the business has simply outgrown the informal ways it originally operated.
Processes that were once verbal are still verbal.Responsibilities that evolved naturally have never been clearly defined.Communication happens through quick messages rather than structured systems.
None of this is unusual. It’s very common in successful small and medium-sized businesses.
The challenge comes when growth continues but the structure doesn’t evolve with it.
At that stage, a few things start to appear:
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the owner is involved in too many operational decisions
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departments begin working in silos
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roles and responsibilities become blurred
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processes are informal or inconsistent
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staff want direction but also want autonomy
What makes this stage particularly difficult is that the business is often performing well commercially, but it’s becoming harder and harder to run.
The founder feels pressure from every direction.
The team could feel confused about where decisions sit.
And the business can start to feel heavier than before.
The solution isn’t about adding more rules or making the business overly corporate. It’s about bringing clarity to how the business operates so that it can continue to grow without everything depending on one person.
That usually involves looking at things like:
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how leadership responsibilities are structured
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how departments communicate with each other
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where decision-making authority sits
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what systems support the day-to-day running of the business
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how managers are supported to lead their teams
When those things begin to click, something happens.
The business often becomes easier to run.
Leaders start to take real ownership of their areas. They’re ‘on’ the business, rather than being ‘in’ it.
Communication improves. People become happier, feel valued, and more efficient.
And the founder starts to feel the pressure lift slightly because the whole of the business is no longer dependent on them for every decision.
Growth doesn’t always create problems. But it very often reveals where a business has outgrown the way it originally worked.
Recognising that and responding to it thoughtfully can make a huge difference to how sustainable the next stage of growth becomes.
If you recognise some of these challenges in your own business, you’re certainly not alone. Growing businesses reach this stage at some point.
Sometimes an external perspective can help bring clarity to how leadership teams, departments and systems work together as the business evolves.
I’m always happy to have a conversation with business owners who are trying to go through this stage of growth.
TJ@Businessglu.co.uk