A 'MUD' MAP: how to avoid getting stuck as you shift from startup to scaleup

The startup journey is a rollercoaster – exciting, exhilarating, undeniably daunting and not for the faint-hearted.

While social media tends to glamorise the #hustlelife, the reality of scaling a business is far more complex.

It’s the point where a company moves from proving its concept to expanding operations, growing its customer base, and increasing market influence – and for those who make it through, the rewards are immense.

From experimentation to optimisation

Startups thrive on experimentation. Grit, determination, good people, and a solid idea are the essential ingredients.

If founders get this mix right – whether by raising capital or bootstrapping – they’re already ahead of the curve.

These factors help navigate the initial building phase, but as traction builds, how do founders know when it’s time to shift from experimentation (startup) to optimisation (scaleup)?

Those who manage to survive the turbulent early days often see growth – until they hit ‘the mud’.

This mud, a near-universal sticking point, typically appears when revenue hits around $10 million annually, or when the team expands to about 25 people.

The ‘mud’ catches almost every business at some point and businesses often stall, stuck at this stage for years or even decades, unable to grow past these milestones. It’s a cycle that often sees founders making drastic changes in desperation to escape it, often to the detriment of the business.

Why do founders get stuck?

It comes down to the classic lesson: “What got you here won’t get you there.”

Good people, hard work, and a great product might get you to that $10 million or 25-person milestone, but that alone isn’t enough to move into the scaleup phase.

This transition can be particularly tough for founders who thrive on the dynamism of startup life.

Scaleup demands structure, systems, and accountability – things that can feel counterintuitive in the fast-moving, innovation-driven startup world. Yet, the key to scaling is creating an environment where innovation can thrive within a scalable, stable framework.

Trying to scale a business without this foundation is like building a one-storey house with plywood and corrugated iron – it works for now, but if you try to add a second or third storey, the structure risks collapsing.

It lacks the strong internal framing, solid foundations, watertight roof, and detailed plans needed for long-term success.

Growing pains: Shifting mindset for scaleup success

Scaling up requires a different approach to startup. Strong systems, well-defined processes, a clear brand, efficient operations, capable leadership, and a robust strategic plan are all essential.

One03 founder Daniel Willis

Just as a builder wouldn’t construct a multi-storey building without detailed blueprints, a business cannot scale without a clear plan and the right support structures.

The challenge lies in the fact that the skills needed to scale are different from those required to launch and get through those early years.

Scaleup is the time to consider bringing in external advisors – not business coaches, but experienced advisors, or setting up an advisory board who can guide leadership teams through the transition.

Navigating this shift is crucial to escaping the mud and returning to a growth trajectory.

Scaling means growing not only in processes and revenue but also in people.

Hiring new talent becomes a priority, and founders must strike a balance between bringing in experienced leaders and preserving the entrepreneurial spirit that propelled the business to this point.

Ensuring the company’s values, mission, and culture remain intact during rapid growth is a strategic challenge, and founders need to instil these core elements in every new hire and across every department.

Conclusion: A new chapter of growth

The leap from startup to scaleup marks the beginning of a new growth chapter.

While it brings exciting opportunities, it also introduces unique challenges that demand a shift in strategy, leadership, and mindset. Scaling a business isn’t just about getting bigger; it’s about getting smarter.

Founders who embrace the need for structure, refined processes, and strong leadership are the ones who will navigate the journey successfully.

While the startup phase may feel like a sprint, scaling is a marathon. It requires patience, foresight, and a willingness to evolve.

The reward? Transforming a startup into a sustainable, thriving business with the potential to disrupt entire industries and leave a lasting impact.

The key to success lies in balancing the innovation that sparked the startup with the operational excellence required for long-term growth.

Once you’re out of the mud the road ahead opens up and it’s often the point where a business starts to feel “like a real business,” even though you’ve already achieved what many entrepreneurs only dream of.