Growing your numbers: From start-up to scale-up

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Growing your numbers: From start-up to scale-up

Welcome back to the final article of the Know, Show & Grow Your Numbers series! In previous articles, we covered "Know your numbers" and "Show your numbers." Today, we’re diving into the next crucial step: Grow your numbers. Whether you’re just starting out, deciding if you should keep going, or thriving but experiencing a cash crunch, growing your numbers is essential for business survival and success.

Regardless of your stage, there’s a pervasive myth that you need to look out for.

Revenue does NOT solve all problems.?

A common misconception in entrepreneurship is the idea that if you just get a lot of customers, you'll figure out how to make money later. The underlying assumption is that getting customers is the hard part, and once they’re using your product or service, you can charge whatever you want.?

I find this attitude condescending - as if customers won’t notice or care.

You may have an opportunity to create value by offering premium service, especially in areas where customers feel like they've been invested in to acquire, but then neglected.

However, you may also be in a commoditized market where customers are focused solely on functionality instead of service.??

Understanding where you fit into the market - whether you’re a more efficient and cost-effective solution OR you’re a high-touch, more expensive option - is critical to understanding your path to profitability.

But in the startup world, too few focus on this because it’s easier to talk about growth and revenue. If you’re not sure how you’ll make money, you need to figure that out quickly. You owe it to yourself to have at least an estimate of what customers will pay that you can validate profitability against - while you’re also testing it in the market.

At its core, growing your numbers means growing your business. This includes increasing revenue, improving retention, expanding customer reach, and optimizing costs to boost profitability. Let’s explore what this means through three distinct business stages.

Stage 1: Starting out – laying the foundation

If you’re in the early stages of your business, you likely have an idea that you believe in and some early indications that it could work. You may be self-funding or considering external capital. The key question is: Are you buying time or buying growth?

Because those are two different things. Generally speaking, early-stage capital is to buy time. You think you have something people want, and you think they'll pay for it - but you haven’t proven it. You think you have a path to profitability, but you haven't been able to map it out yet.?

Bringing capital into the business at this point - whether it's yours or anybody else's - means that you're buying time. The key is to understand how much time you're buying and which experiments you need to run during that period to prove that your business can succeed.?

It’s important to answer questions like: "What are the biggest assumptions I’m making about my business? How much capital do I need to get to profitability? Can I expect to reach profitability with this investment, or what’s my plan for securing additional capital?" Before you use your own money or take investments from friends, family,or even outside investors, you need to fully understand the obstacles you’ll face as well as the opportunities.

To maximize this period:

Understand if profitability is possible – Does my sales price cover the cost of getting customers, delivering what I promised and keeping them happy - with something left over? Because if you don't have a way to get to profitability, then you don't really have a business. You have more of a nonprofit - a company that continues to need funding to continue to grow, can’t sustain itself, and is at risk of wasting all of the capital that's been invested in it.

Test and iterate quickly – Are people willing to pay for what I offer? Do I know how I’ll keep that customer happy and engaged after the sale? ?Keep expenses low while you experiment by starting small and progressively increasing your investments over time. Prioritize your experiments by what can kill your business the quickest.??

Set a timeline for profitability – How many months until I have enough revenue to cover all of my costs? If you plan to quit your job, do the math on how many customers you need to replace your salary before you hand in your resignation. If you can’t make the math work—like acquiring a customer for $25 when you sell a product for $5—don’t wait around. Take action and consider repositioning your offer at a higher price, adjusting the level of service after sale, or trying lower cost channels to acquire customers.?

Validate before scaling – Understand which levers in your business generate a positive return on investment. Ensure you’re attracting customers who are willing to pay - and stay - before pouring money into more marketing.?

Without clear evidence that your business model can lead to profitability, you risk running out of cash before breaking even. The best way to grow in this stage is through smart, calculated experiments that help you learn what works - and what doesn’t.

Stage 2: In the middle – Should I keep going?

At this stage, you’ve been in business for a while, but growth may be slow or unpredictable. Cash flow could be tight, and you’re questioning whether to pivot, persevere, or pull the plug.

Key strategies for growth:

Identify your key growth metrics – For many businesses, their biggest costs are related to finding customers. Think about the relationships between customer acquisition cost (CAC) and the lifetime value of the customer (LTV). If your product costs $20/month and you spend $500 to acquire a customer, they must stay for over two years just to break even. Could I raise prices? How might I lower CAC or the cost of delivering my product or service?

Fine-tune your value proposition – If growth is stagnating, ask yourself: are you clearly communicating what makes you different? Does your messaging align with your customer’s current challenge or need?

Double down on what is working – For example, if one marketing channel outperforms the rest, invest more resources there. In, The One Thing, by Gary Keller and Jay Papasan the authors emphasize simplifying your workload, or focus, by concentrating on the most important task first.?

Find the weak link – Not all activities are equal. It’s your job to be your own best investor in your business, so stop spending and start asking. Where am I investing the most without delivering value??

Leverage your network – It's important to have a community that understands problems and that's willing to talk to you when things aren't going well. You need more strategic feedback than, “just keep going!” You need tactical help.?

This stage is about refining your operations and ensuring that each dollar you spend contributes to sustainable growth. If you can’t see a clear path forward, it might be time to rethink your approach.

Stage 3: Thriving but cash-strapped – scaling sustainably

If your business is thriving, congratulations! But with growth comes a new challenge: running out of cash despite high demand. Scaling too fast without financial clarity can break a business. Balancing growth and stability becomes your most important objective.

Strengthen Pay attention to your systems – Automation, process improvements, and hiring the right people will help you scale efficiently without overextending resources.

Monitor churn, internal and external – Rapid growth means little if customers or team members leave quickly. Keep an eye on customer satisfaction and engagement. Instead of chasing expansion at all costs, reinvest in customer loyalty, employee development, and long-term stability.

Align growth with capacity – If you’re acquiring customers faster than you can serve them, retention will suffer. Ensure your team and your operations can keep up.

Improve cash flow management and optimize your pricing strategy – Faster invoicing, subscription models, or better payment terms with vendors can keep cash flowing smoothly.?

Balance risk and reward – Growth often requires bold moves, but reckless expansion can be costly. Run experiments (using a platform like @Fric.io!) and commit to decision-making based on data.?

Raise smart capital – Investors and lenders prefer funding growth, not just survival. Make sure new capital is fueling expansion, not just buying time.

At this stage, success isn’t just about getting more customers—it’s about keeping them happy and ensuring the business remains financially sound.

Strategic Growth?

Growing your numbers is about more than revenue—it’s about sustainable profitability. Whether you’re starting out, at a crossroads, or scaling fast, the key is to make strategic, data-driven decisions that lead to long-term success while avoiding common growth pitfalls, such as:?

Scaling without a plan – Growth should be intentional, not reactionary.

Ignoring customer experience – Retaining customers is often more cost-effective than acquiring new ones.

Underestimating cash flow needs – Even profitable businesses fail due to poor cash flow management.

Failing to adapt – Market conditions change; staying flexible is crucial.

By identifying your business levers, cutting unnecessary costs, and focusing on profitable growth, you set yourself up for sustainable success. Chasing growth without considering profitability is a trap. But finding a balance between these seemingly opposing goals, you can grow your numbers—and your business—to achieve success in whatever way you define it.

Stephanie Sims is a recovering investment banker, two-time founder, speaker, venture capitalist, and startup educator who believes every entrepreneur should build a business that makes dollars...and sense. She is also the author of Funding Your Business Without Selling Your Soul. After watching too many promising founders chase funding at the expense of long-term success, she created Fric IO —an interactive platform that turns your big vision into actionable steps. Fric helps entrepreneurs like you map and navigate the shifting path toward the world you believe should exist. This skill, which Fric calls visionary prowess, equips you to make confident decisions, take committed action, and chart your own route to success.