The operating model for SaaS has inverted post-2021. Previously, growth came at the cost of declining efficiency ('200% headcount to grow 100%'). The new benchmark is to achieve hyper-efficiency at the margin, demanding teams grow revenue at double the rate of their headcount expansion.

Julie Zhu observes that many of the fastest-growing companies grow so quickly they don't have time to build robust data logging and observability. They succeed on "good instincts and good vibes," only investing heavily in data infrastructure after growth eventually stalls.

As a company grows, its old operational systems and processes ('plumbing') become obsolete. True scaling is not about addition; it's about reinvention. This involves systematically removing outdated processes designed for a smaller scale and replacing them entirely.

The tension between growth and profitability is best resolved by understanding your product's "runway" (be it 6 months or 6 years). This single piece of information, often misaligned between teams and leadership, should dictate your strategic focus. The key task is to uncover this true runway.

Instead of replacing leaders at each growth stage, the Uber Eats management team was built like an "organism" with complementary strengths and was kept largely intact from launch to a $20 billion run rate. This proves a cohesive team that can learn together is more valuable than constantly hiring for "scale experience."

The biggest scaling mistake is focusing on running up numbers while ignoring the underlying mindset. During its peak growth, Facebook put every new engineer through a six-week bootcamp not for immediate productivity, but to instill the company's culture. This investment in a shared mindset is what enables sustainable scaling, preventing the chaos that comes from rapid headcount growth.

As companies grow from 30 to 200 people, they naturally become slower. A CEO's critical role is to rebuild the company's operating model, deliberately balancing bottom-up culture with top-down strategic planning to regain speed and ensure everyone is aligned.

A founder's role is constantly changing—from individual contributor to manager to culture builder. Success requires being self-aware enough to recognize you're always in a new, unfamiliar role you're not yet good at. Sticking to the old job you mastered is a primary cause of failure to scale.

Rapidly scaling companies can have fantastic unit economics but face constant insolvency risk. The cash required for advance hiring and inventory means you're perpetually on the edge of collapse, even while growing revenue by triple digits. You are going out of business every day.