To CEOs: What Are Your Core Competencies?

As you scale, it’s crucial to identify your core competencies. These are the areas where you should allocate resources and focus because they will drive the most enterprise value. The other areas can be managed differently, where you can lean on the know-how of others (partners, agencies, freelancers). I have used this simple framework to help in making this decision, particularly in the context of what drives growth.

With Brand and Product being the primary drivers for customer engagement and monetization, they are the pillars of sustainable success. Therefore, they shouldn’t be outsourced. On the other hand, Growth offers many opportunities.

Of course, I’m biased—this is precisely why we built Exactius six years ago.

The Scale-Up Dilemma: Why Many Businesses Stumble at $20M

I’ve scaled multiplied companies from zero to nine figures across continents and I’ve seen many companies hit a wall around the $20 million mark. 

Why? It's not always about product-market fit or funding. Often, it's simply about how you approach your growth goals.

Here are a few common pitfalls I usually see: 

• The DIY Trap: Growth-focused CEOs, CFOs and CMOs often believe they need to build everything in-house. While this works in the early days of a company, it becomes a big liability as you scale. Your scrappy, do-it-all team that you started off with will struggle with specialized growth tactics or advanced data analysis that are essential as you advance to new growth stages. 
• The Agency Maze: On the flip side, some CEOs choose to outsource everything to agencies. While agencies can bring much-needed expertise, relying too heavily on them can lead to a loss of control and institutional knowledge. Plus, misaligned incentives can derail your growth strategy.
• The Data Disconnect: As you scale, your data needs evolve dramatically. Many companies find their existing BI infrastructure can't keep up, leading to blind spots in decision-making.

So, how do you push past the inevitable growth plateaus your company will hit? Here’s my general playbook:

• Focus on your core competencies: What truly drives your company's value? For most, it's product and brand. Double down on these internally.
• Strategically partner for growth: Consider working with specialized agencies or consultants for areas like performance marketing or advanced analytics. But maintain transparency and control over your data and strategies.
• Invest in scalable BI: Your data infrastructure should grow with you. Consider solutions that can bridge the gap between your internal capabilities and your evolving needs.

Remember, scaling isn't just about doing more of what got you to $20M. 

It's about evolving your approach to support sustainable growth to $100M and beyond.