The Economics of Scaling: What Holds Service Businesses Back from Their Next Level
Randy Burton Randy Burton

The Economics of Scaling: What Holds Service Businesses Back from Their Next Level

Service businesses don’t necessarily stall because of a lack of opportunity. Often, they stall because the economics of growth feel unpredictable and overwhelmingly personal. Owners see the possibilities in front of them with bigger clients, expanding demand, and higher-value work, but the financial steps needed to seize those opportunities can feel too risky. Hiring ahead of revenue, raising price to match value, investing in technology, or expanding capacity require money, time, and confidence. Yet a lot of small service businesses operate with thin margins and inconsistent cash flow, making those investments feel like walking a tightrope.

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Breaking the Owner Bottleneck: How Small Businesses Can Begin to Scale
Randy Burton Randy Burton

Breaking the Owner Bottleneck: How Small Businesses Can Begin to Scale

Many small businesses, especially service businesses, don’t hit a ceiling because of the market, competition, or talent. Their growth stalls because the owner or founder becomes the bottleneck.

It’s not intentional. It’s also not a character flaw. It’s simply how many small firms are built: the owner starts out doing everything—selling, delivering, project managing, approving, billing and those habits stay long after the company outgrows them. Over time, the business becomes dependent on the owner for decisions, expertise, and to some extent even emotional stability. And that’s where growth slows… or stops altogether.

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