Scaling Team Growing Pains: Why Your Team Can Break on the Way to $1M

Growing pains aren’t just for teenagers—your business experiences them too! After helping hundreds of business owners build high-performing teams over the past 15+ years, I’ve noticed a pattern that catches many successful entrepreneurs by surprise: The very systems and team dynamics that worked brilliantly in your early days often break down as you approach that exciting $1M revenue milestone.

Here’s the truth that nobody talks about: More revenue doesn’t automatically translate to more freedom or profit. In fact, many business owners find themselves busier than ever, fighting more fires, and wondering why their previously rock-star team suddenly seems overwhelmed.

In this article, I’m sharing the three predictable team breakdowns that emerge during growth phases and—more importantly—practical solutions to help you navigate these transitions with confidence.

When Do These Growing Pains Hit?

First, let’s address timing. While I use the $1M revenue mark as a general benchmark, these team growing pains can hit at different points depending on your business model:

• If you operate with multiple subcontractors or part-timers, you might experience these challenges at $500K
• If you have a high-volume, low-ticket model, these issues typically emerge earlier
• With a low-client, high-ticket model, you might stretch further before hitting these breaking points

One client managed with just a virtual assistant all the way to $800K before team issues surfaced, while others hit these challenges at $500-600K.

Regardless of when they appear, remember this: these growing pains aren’t a sign of failure—they’re actually proof of your success. Your business has simply evolved beyond its original structure!

Breakdown #1: Communication Systems Start Showing Cracks

What does this look like in your business? Information being missed by people who used to be across everything. Previously reliable team members suddenly seeming less effective. Client feedback that isn’t quite as glowing as before. You’re repeatedly clarifying directions to different people, and your personal inbox and calendar are filled with approval requests.

This happens because the increased volume makes those previous casual, informal communication methods ineffective. New team members may have joined without proper role clarity, creating duplication of efforts and misinterpretation of instructions. Meanwhile, you’re trying to stay involved in everything (because it feels like you should), but it’s becoming increasingly impossible. The result? Too many opinions, workflow slowdowns, and a compromised client experience.

The solution starts with conducting a communications scan across your business, looking for information flow bottlenecks. Determine whose opinion actually matters at each stage of your processes. Consider implementing a daily check-in approach (10-15 minutes) while you overhaul communication systems. Establish clear communication guidelines for different channels and tools, and define decision-making processes that don’t always end with you.

Breakdown #2: Broad, Flexible Roles No Longer Scale

You might notice tasks falling through the cracks despite capable people in those roles. Team members unknowingly duplicate work. Previously effective “multi-hat wearers” seem overwhelmed or stressed. And you find yourself stepping in to pick up dropped responsibilities.

Those early team members—often your longest-standing and most dedicated staff—start struggling with their previously broad, do-it-all roles. As volume increases, what used to work becomes unsustainable. What’s particularly challenging is that these valued team members often receive more grace from you because of their history with the business. Rather than recognising that their role has become too broad, you might attribute occasional dropped balls to temporary circumstances.

The way forward involves reviewing and recalibrating roles for your current stage of growth. Group skills and experience together into logical “decision authority buckets.” Define which decisions can be handed over completely, and to whom. Frame this as the business evolving, not a reflection on anyone’s capabilities. And design roles around specific outcomes rather than general areas of responsibility.

Breakdown #3: Collaborative Decision-Making Creates Bottlenecks

The signs of this breakdown include projects moving slower than they should, team members seeking approval for decisions they previously made independently, progress stalling when you’re unavailable, and your calendar filled with decision-making and approval meetings.

The collaborative approach that worked brilliantly in your early days—when everyone weighed in on everything—becomes inefficient as you grow. Team members have been conditioned to involve you in decisions, and the stakes feel higher with increased complexity. The result? Decisions that used to be made quickly now take days or weeks, creating a ceiling on your growth based on your availability.

To address this, identify decisions you’ve made recently that others could handle. Create clear decision-making frameworks outlining who can decide what, when. Define when and for what issues you actually need to be consulted. When team members seek approval unnecessarily, ask “What do you think we should do?” And recognise and celebrate independent decision-making, even when outcomes aren’t perfect.

Moving Forward: Evolution, Not Failure

Just as you wouldn’t wear exactly the same clothes you wore 10 years ago (though your style might remain similar), your team structure needs to evolve while maintaining its core essence.

These growing pains are simply signs of a successful business evolving to its next stage. By proactively addressing these common breakdowns, you can continue scaling with confidence, building a team structure that supports your growth rather than constrains it.

Ready to transform your team’s performance? Check out my Team Performance Audit—a personalised assessment to pinpoint exactly where your team needs adjustment with prioritised recommendations for improvement.