Michael Chavira Shares Lessons in Scaling a Business
Scaling a business from a two-person startup into a $90 million enterprise can feel like navigating a vast mountain range. At first, you see just one peak looming ahead—your first million in revenue—and that initial climb demands a specific set of strategies and tools. But once you reach that summit, you realize it’s merely the first in a chain of increasingly formidable peaks. Each requires different “gear,” a fresh mindset, and an evolving approach. The process of sustainable scaling is not about repeating what worked at a smaller level; it’s about constantly reassessing, investing, learning, and recalibrating.
When we first began, everything centered on doing the work ourselves. My co-founder and I juggled client deliverables in the early days while handling administrative tasks in our off-hours. The systems, people, and processes that got us to our first million in revenue were wholly inadequate when we began eyeing the $10 million mark. It wasn’t simply a matter of working harder; that approach brought diminishing returns. Instead, we learned to adopt a “learning loop” mentality—Build, Measure, Learn, Decide—so that after every initiative, we took time to assess what worked, what didn’t, and how we could adapt. This iterative cycle allowed us to reinvent our operations at each growth stage.
One turning point occurred when our headcount hovered around 10 to 15 people. We encountered our first real sense of “churn” as talented employees started to leave for other opportunities. It was the first indicator that we had outgrown our initial culture and structure. Until then, we had been working tirelessly “in” the company rather than “for” the company, focusing on immediate tasks rather than long-term strategy. This was a sobering moment, prompting us to take a step back. We realized we needed to invest in infrastructure supporting sustainable growth, more clearly defined roles, better back-office systems, and a culture that would resonate with employees and customers alike.
Culture, we learned, cannot be dictated from the top. Early on, my co-founder and I tried to set the mission, vision, and values in an afternoon, post them online, and consider the matter settled. But this superficial gesture had no real impact, and within six months, we were spinning our wheels. With the help of trusted advisors, we realized that culture needed to emerge collaboratively. We organized an off-site meeting with only our employees present and brought in a professional facilitator. Leadership stepped aside so that our team could identify the values that mattered to them. The result was transformative. Our people took ownership of the culture and began recruiting new hires who shared those values. This shift-in approach gave our workforce a shared purpose and direction, providing a solid foundation as we grow toward that $10 million peak.
Not all lessons were learned in moments of calm reflection. Some were forged under pressure during periods of uncertainty and external turmoil. Just before the onset of the COVID-19 pandemic, we wrestled with the opportunity to sell the company. We decided against it, a choice that felt particularly fraught as the world fell into economic instability. Rather than retreat, we leaned into growth. We executed our first acquisition, finding a company that aligned closely with our culture and values. The integration was smooth, and we’ve made our approach very thorough and clear communication. Buoyed by that initial success, we took on another acquisition—only to find that not all deals unfold so gracefully. This time, cultural mismatches and operational complexities forced us to refine our strategies and raise our standards. These experiences, challenging as they were, sharpened our instincts and ultimately made us more resilient.
Resilience and adaptability, of course, are essential qualities for leaders aspiring to scale. A strong initial focus on revenue-generating activities is crucial for those unsure where to begin. Before broadening your horizons too quickly, ensure that you have reliable streams of income and the infrastructure to support them. Outsourcing non-core functions—like accounting or administrative tasks—is often a wise early move. It might cost a few hundred dollars a month, but it frees you and your team to prioritize strategic initiatives and market opportunities. By having experts manage the details, you carve out the bandwidth to pursue growth that matters.
As organizations grow, leaders must also grapple with the complexities of scaling culture. Keeping people engaged and aligned requires more than a single workshop or a company memo. Regular check-ins, periodic off-site sessions, and professional facilitators helped us revisit and refine our mission, vision, and values as the headcount ballooned. Acknowledging birthdays, celebrating milestones, and hosting light-hearted weekly riddles may seem like small gestures, but they weave bonds of community and recognition. These touches matter, reminding employees that they’re valued as individuals, not just as cogs in a machine.
None of this means that culture is always easily maintained. There are inevitably times when operational demands overshadow cultural initiatives. When deadlines loom, it’s tempting to put employee engagement on the back burner. But even then, small acts of appreciation and transparency go a long way. Challenge yourself to recognize people’s contributions openly and frequently. Let them know what’s going on behind the scenes—both the challenges and the triumphs—and invite their input whenever possible. Over time, this inclusiveness helps sustain a shared sense of purpose that can endure scaling pressures.
Perhaps the greatest lesson we learned from our journey is that growing solely by “working harder” at what you already do well is impossible. Scaling is not about doing more of the same but evolving into something new. Markets shift, competition intensifies, and services can become commoditized. Without deliberate steps toward innovation, a once-thriving business model can stagnate. That’s why you must invest in new technologies, capabilities, and ideas well before you feel you urgently need them. True innovation may take time to yield returns, but if you start only when revenue plateaus, you might already be too late. By incorporating research and development, strategic partnerships, and forward-looking initiatives into your long-term plans, you create a roadmap that anticipates market changes rather than reacting to them.
Innovation can arise from multiple sources, including collaborations with startups, government agencies, universities, and other corporate partners. These alliances help you tap into emerging technologies and business models. They also encourage employees to think creatively and challenge the status quo. Ultimately, sustainable growth demands a proactive mindset that views scaling not as a single mountain to climb but as a continuous expedition through a range of peaks, each revealing new horizons.
Ultimately, our journey from a two-person startup to a multi-million enterprise was never just about numbers. Each revenue milestone was a marker of progress and a reminder that new peaks lay ahead. We learned that transparent communication fosters trust, that employees who shape the culture become its fiercest advocates, and that strategic decisions must evolve as your business grows. Most importantly, we learned that sustainable scaling is an ongoing adaptation, innovation, and reinvention process.
Looking back, the difference between the early days and our later successes was not just the capital at hand or the size of our client base. We were willing to treat scaling as a dynamic, iterative journey rather than a linear path. Embrace the challenges, learn from the missteps, and continually refine your strategy. Do that, and each new summit offers a better view and a more prosperous, resilient organization ready for whatever landscape comes next.