What Most Founders Get Wrong About Scaling

Apr 2

Welcome to the Dave vs. Startups.

Most founders think scaling requires:

I bootstrapped to $5M doing the opposite.

Here's what actually works (and what doesn't):

Conventional startup wisdom says you need funding to compete.

But the data tells a different story.

75% of VC-backed startups fail after year 4 (when the money runs out).

That’s worse than the typical startup failure rate of 70%

First hard truth about bootstrapping:

Scale means systems, not headcount.

More people without systems = more chaos.

The real key to scaling without funding was customer service.

Sounds boring, but here's the math:

Big companies can't match this level of service.

But here's where most founders mess up.

They try to do everything themselves to save money.

I did this too.

I was in every sales call, handled every crisis, and felt complete burnout.

The breakthrough came when I realized:

I didn't need to hire a lot of people.

I only needed to hire the RIGHT people.

The hardest part was fighting the urge to grow faster.

When you see funded competitors throwing money around, it's tempting to speed up hiring.

But maintaining profit margins is your real edge.

That's what they can't match.

Based on my experience, here’s what works for scaling:

The numbers most won't tell you:

70% of startups fail in years 2-5.

75% of funded startups fail after year 4.

Funding doesn't fix bad business fundamentals.

Sometimes it just helps you fail faster.

You don't need funding to compete.

You need better systems and patience.

Bootstrapping may seem slow, but it’s the sustainable path.

Thanks for reading!
Dave

David Sinkinson

I Talked to Dozens of Founders