A founder’s guide to choosing the right growth speed at the right time.
The fastest route isn’t always the best route.
This is true in life—and even more so in business growth.
Many founders believe fast growth is always better. They’re wrong.
The best growth rate depends on your current capabilities. Most of it is within your control.
Here’s what I’ve learned after two successful exits: Growth is like driving a car.
You can cruise at city speeds.
You can accelerate on highways.
Or you can push the engine to its limits.
Each speed serves a purpose. Each speed has risks. Each speed requires specific conditions.
Let me break this down for you.
The Three Speeds of Growth
First, let’s be clear: Growth typically means year-over-year revenue growth. That’s your key metric.
Normal Growth (up to 20% annually)
Think of this as city driving.
It’s controlled. It’s manageable. It gives you time to react.
At this pace:
- You’re growing faster than the economy
- Your systems aren’t stretched
- Your team can properly support each new customer
Amazon chose this path early on. They grew steadily for years, focusing on perfecting their operations first.
Rapid Growth (20-40% annually)
This is highway driving.
You’re moving fast, but you’re still in control.
At this pace:
- Your systems are stretched but not breaking
- Your unit economics remain solid
- Your team is busy but not burning out
Zoom demonstrated this pre-pandemic. They systematically expanded their enterprise customer base while keeping their product stable.
Hypergrowth (40%+ annually)
This is racing mode.
Every system runs at maximum capacity.
At this pace:
- You’re aggressively capturing market share
- Your team is expanding rapidly
- Your processes are constantly evolving
Slack exemplified this. They had built the foundation first, then seized their market opportunity with explosive growth.
These aren’t sequential stages.
A well-funded startup might begin at hypergrowth. A mature company might choose normal growth. Your speed should match your capabilities and circumstances, not your company’s age.
The Growth Velocity Framework
How do you know which speed is right for you?
I’ve developed a framework to help you decide. It looks at five key factors:
1. Market Momentum
Three simple questions:
- Is your market expanding rapidly?
- Are customers actively seeking solutions like yours?
- Is there a closing window of opportunity?
What it tells you: Three “yes” answers mean speed up. Two “yes” answers mean proceed with caution. One or zero means stay at normal growth.
A hot market is an opportunity. But a moderate market lets you build properly.
2. Operational Readiness
Ask yourself:
- Can your product handle 2x more customers?
- Are your core processes documented?
- Can you maintain quality at scale?
What it tells you: Need all three “yes” answers for faster growth. One “no” means stay at normal speed. Two “no” answers mean stop and fix operations.
3. Team Capacity
Evaluate honestly:
- Can your current team handle more customers?
- Can you hire and train quickly?
- Is your leadership ready for the next stage?
What it tells you: Any “no” means be happy at 20% growth. All “yes” answers support rapid growth. For hypergrowth? You need proven hiring systems.
4. Cash Position
Ask yourself one simple question: How much runway do you have?
Here’s what you need:
- Normal Growth needs 6+ months runway
- Rapid Growth needs 12+ months
- Hypergrowth needs 18+ months or strong funding
What it tells you: Your cash position sets your speed limit. No exceptions. Declining runway? Slow down immediately. Strong funding can unlock faster growth.
5. Customer Success
This is your non-negotiable checkpoint:
- Are customers getting consistent value?
- Is churn stable or improving?
- Can you maintain support quality at scale?
What it tells you: This is your override switch. One “no” here stops everything else. Even amazing opportunities can’t beat poor customer success. Fix these first. Then think about growth.
Making Your Growth Choice
Let’s translate your framework results into action.
Normal Growth (up to 20%)
This is your default speed. Stay here until:
- Your unit economics are stable
- Your core processes are documented
- Your core team is complete
- Your customer feedback loops are established
This isn’t playing it safe. This is playing it smart.
Rapid Growth (20-40%)
Accelerate when you see:
- “Yes” on 4 out of 5 framework indicators
- Your customers are asking for more than you deliver
- Your systems are ready for increased load
Hypergrowth (40%+)
This is your all-in moment. Choose it when:
- All framework indicators show strong positive
- Your systems are automated
- Your hiring pipeline is proven
- Your market demands speed
Remember: Hypergrowth usually needs significant capital. Outside funding might be necessary. Fundraising will demand your time and focus. Choose this only if you’re ready for that challenge.
Watch for Warning Signs
Like a good driver, read the signals.
Slow Down:
When your dashboard shows:
- Customer complaints up 20%+ in a month
- Rising employee turnover
- Cash runway below 9 months
- Sales team missing targets
Speed Up:
When you notice:
- Competitors gaining ground quickly
- Turning away customers regularly
- Cash efficiency improving steadily
- Team exceeding targets easily
- Market pulling harder than you push
Making the Transition
Changing speeds isn’t like flipping a switch. It’s like steering a large ship. It takes planning and patience.
When you’re targeting higher revenue:
- Document every process
- Build backup for key positions
- Automate repetitive tasks
- Create training systems
- Set clear success metrics
When you’re lowering the target:
- Tell your stakeholders why
- Focus on your core offerings
- Strengthen customer relationships
- Remove unnecessary costs and complexity
Your Next Step
Take 15 minutes this week to assess your current speed.
Use The Growth Velocity Framework to evaluate your pace.
Then ask yourself:
- Do we see any warning signs?
- Is our team stretched or bored?
- Do our systems have room to grow?
This simple check can prevent major problems later.
Remember This
The goal isn’t maximum speed. The goal is accelerating at the right moment.
The most successful companies aren’t the ones that always go fast or always go slow. They’re the ones that know when to hit the accelerator.
My advice after two exits? Aim for rapid and responsible growth. Build your readiness. Then when the moment comes, accelerate with confidence.
Found this framework helpful? Share this Newsletter to a founder who’s thinking about their growth pace.
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