Premature Scaling Leads to Failure

What is the dominant reason for startup failure? Premature scaling.

To be more specific, to scale properly a startup must nurture consistent and timely growth in each of the following five core dimensions: customers, product, team, business model and funding. Premature scaling in any of these dimensions often leads to failure.

For those entrepreneurs interested in the cash outcome as opposed to the king outcome (control), this is a big deal. Startups that experience premature scaling are valued 3x LESS on average than those that scale properly across the five dimensions.

Take a gander at the infographic below from Blackbox’s creation The Startup Genome project entitled “Why Startups Fail.” The image offers intriguing stats with valuable insight for young startups.

Why Startups Fail: Premature Scaling

Originally found on visual.ly.