Dumb Reasons for Premature Scaling

I recently ran across the infographic below describing why startups fail. I think it accurately points out that startups often fail due to premature scaling (and the associated escalation of expenses).

Reasons for premature scaling are often self-interested, prideful, and escapist:

• Desiring to give the outward appearance of success (e.g. hiring 20 people for your startup when the revenues or stage of the startup do not support it)
• Desiring to avoid work (e.g. bringing more people on-board so that you do not have to do as much work)
• Desiring to have a “big name” hire on your team so that you can appear prestigious to investors (e.g. don’t hire a bag carrying sales guy just because you think it’ll help sway investors)
• Desiring to have a fancy party atmosphere (e.g. wanting to spend money on a big fancy office when you really should be working out of a $12/sqft space and keeping the thermostat off)
• Desiring to eat fancy with your “corporate” credit card (when really you should be spending on things that matter)

What other dumb reasons have you seen for premature scaling?

by ernestoolivares.
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