How to Avoid Common Mistakes When Trying to Achieve Growth

An eye on people, financials, and processes is key to navigating growth without sacrificing stability.

At the recent Amusement Expo, I had the privilege of moderating a candid discussion with two learning entrepreneurs who are navigating the treacherous waters of building and scaling entertainment businesses: John Dunlap, Five Star CEO, and David Goldfarb, Elev8 Fun Managing Partner. We dove deep into the real-world challenges that plague businesses scaling up, moving beyond theoretical strategies to the gritty, practical lessons learned in the trenches.

Together, we explored the common pitfalls that can derail even the most thoughtful leaders. From the allure of filling roles quickly to the silent erosion of core values, the path to growth is tricky.

Many leaders encounter the same hurdles, and understanding these pitfalls is an excellent first step to avoiding them. Read on to learn how.

Pitfall No. 1: Hiring for Speed, Not Strategy

Growth often triggers a scramble for talent. But throwing bodies at the problem is a recipe for disaster. John shared that building a strong leadership foundation was paramount to their success. He remarked, “By the time you think you need to hire, it’s probably already too late.”

When preparing for growth, consider projecting the business’s future needs in terms of frontline hiring and leadership development. How much time will you devote to new growth compared to your previous commitments to your existing business and team?

Also, don’t just hire someone to fill one gap; use growth periods to help you think strategically about all the roles in your organization and define and redefine roles as needed. When reviewing candidates, try not to prioritize urgency over long-term cultural fit.  Someone may have a terrific background, but if they clash with your company’s culture or values, they’ll create more problems than they solve.

Cross-training and promoting from within can help maintain stability and team engagement. However, don’t assume your existing staff or leaders will be as excited about growth as you are. Take time to share the plan and get buy-in before putting people into positions they may not be ready for or even interested in.

Pitfall No. 2: Underestimating Financial and Cash Flow Needs

Growth demands capital, and overlooking financial realities can lead to a cash crunch. Whether you’re trying to grow quickly or slowly, John and David agree on these key tips.

Prepare for the unexpected. Develop contingency plans and maintain a healthy cash reserve. Many leaders develop an optimistic bias, which causes them to underestimate the likelihood of adverse events, such as an economic downturn.

Remember that what succeeds in one market might not seamlessly translate to another. Instead of a one-size-fits-all approach, systematize your go-to-market strategy, allowing for essential adjustments based on each location’s unique characteristics.

Pitfall No. 3: Neglecting Your Existing Location(s) or Customer Base

The squeaky wheel gets the grease, which may be true, but keeping parts from becoming squeaky in the first place is a better way to maintain stability. As mentioned earlier, you may not have the same amount of time to devote to your existing location, so you must build a plan around strengthening your place in your current market.

Strengthening your brand position could mean investing in more marketing or innovations in your menu or other offerings. The key is that you develop a plan to continuously analyze key performance indicators (KPIs), guest feedback, and market trends to identify areas for improvement.

Most importantly, resist the temptation to focus all your attention on the new and urgent. Your existing facility(ies) and loyal guests are the keys to making growth possible and neglecting them risks undermining the success you’re striving to achieve.

Pitfall No. 4: Failing to Establish or Document Processes

As you scale, the cracks hidden within your operations become glaring chasms. Growth acts like a stress test, revealing every clunky process or operational bottleneck. To avoid a descent into chaos, prioritizing process optimization is non-negotiable. Streamline workflows, eliminate redundancies, and invest in the right technology to boost efficiency before expansion.

For many businesses, processes are developed out of an operational need and often never revisited or documented. When your team is small, or you have your hand in everything, that may work for a time. But as you move towards a growth path, carve out time to analyze, tweak (or overhaul), and document your processes to ensure everyone is on the right track and you’ll be able to scale.

Pitfall No. 5: Losing Sight of Cor Values and Culture 

Even in small businesses, maintaining core values and company culture requires intentional effort, clear communication, and strong leadership. As your organization expands, it’s crucial to embed these values into every aspect of the business—from hiring and onboarding to daily operations and decision-making.

Your leadership team should consistently model and reinforce these principles, ensuring team members understand and embody them at every level. Regular internal communication, such as team meetings, shift huddles, and training and coaching sessions, helps align new and existing team members.

Encouraging staff feedback and engagement can also help sustain an evolving culture without losing its essence. By integrating values into performance metrics, rewards, and recognition programs, you can create a company with a strong culture, even during rapid growth.

Growth isn’t just about expansion—it’s about doing so without compromising the foundation that made your business successful in the first place. By anticipating and proactively addressing these pitfalls, you’ll be better positioned to scale confidently while staying true to your vision.