THE JOMAG TAKE #003 Business as it really is.
THE JOMAG TAKE #003 Business as it really is. Why Most Startups Should Never Scale Let’s kill a dangerous fantasy early. Not every startup deserves to scale. In fact, most shouldn’t. Yet the moment a business makes a little noise, some traction, a few media mentions, a pitch deck with arrows going up, the founder starts talking about expansion. New branches. New markets. New hires. New headaches. Scaling has become a badge of honor. But scale is not a reward. It’s a stress test. I’ve seen businesses collapse not because they were bad ideas, but because they scaled a fragile model. Weak unit economics don’t magically fix themselves with volume. They get louder. Faster. More expensive. Here’s what usually goes wrong: • The product works, but margins don’t • The founder is charismatic, but systems are missing • Demand exists, but execution is inconsistent • Growth is funded by optimism instead of cash flow Scaling amplifies everything including your mistakes. ...