From $600M to $0

💥 Success isn’t just about growth — it’s about sustaining it.

A few years ago, I joined a fast-growing company that seemed unstoppable.

The business had created an employee share scheme, which made working there even more motivating.

Performance was incredible.

After a few years of rapid expansion, the business went public with a valuation just over $100M.

It didn’t stop there — the valuation climbed to over $600M in record time.

Employees and shareholders were sitting on massive paper wealth.

But then, cracks started to show.

🎢 From Market Favorite to Total Collapse

At its peak, the business was a favorite among stockbrokers.

The growth rate was spectacular — but it was faster than the company’s capital could sustain.

To keep up with expectations, the commercial team started making unrealistic promises to customers.

The problem? Those promises couldn’t be kept.

Margins thinned.

Cash flow dried up.

The business started missing financial targets.

Eventually, even the banks lost confidence — they pulled their loans.

The company's financial structure collapsed almost overnight.

Shareholders lost everything.

Employees who held on to their shares saw their value drop to zero.

In the end, the business was gifted to a larger competitor for nothing.

A $600M company — gone.

❗️ What Went Wrong?

When a business scales, the balance sheet has to scale with it.

Rising revenues need to be backed by:
→ Enough working capital.
→ Sustainable customer contracts.
→ Realistic delivery capabilities.

The business made three critical mistakes:
❌ Over-promising to customers to maintain growth momentum.
❌ Failing to secure sufficient capital to support that growth.
❌ Losing financial discipline as competition increased.

✅ How to Avoid This in Your Business

Scaling is not just about top-line growth — it’s about sustainable profitability.

Here’s how to stay disciplined as you grow:

1. Align Growth with Capital Structure
Growth requires capital — and the balance sheet has to support it.
→ Build strong relationships with lenders.
→ Keep debt levels manageable.
→ Maintain enough liquidity to handle short-term shocks.

2. Be Honest About What You Can Deliver
Your commercial team should know what’s realistic.
→ Don’t make promises you can’t fulfill.
→ Monitor customer satisfaction and delivery timelines closely.
→ Adjust sales targets based on operational capacity.

3. Watch Your Margins Relentlessly
Rapid growth can mask declining profitability.
→ Track gross margins and operating margins constantly.
→ Adjust pricing and cost structures when margins tighten.
→ Don’t trade profitability for market share.

🏆 The Bottom Line: Growth Is Not Enough

Rapid growth feels great — but it’s not enough.

Sustainable success comes from disciplined operations, financial strength, and consistent customer value.

👉 Don’t chase growth at any cost. Build a business that can survive success.

P.S. I’ve seen firsthand how easy it is for even successful businesses to fall apart when discipline slips. If you’re growing fast, now’s the time to take a hard look at your financial structure — before it’s too late.

🔥 Learn how to scale profitably — without risking it all.