"Makes me nervous": Shark Tank investor Robert Herjavec shares his concerns over scaling a business

Robert Herjavec, a renowned investor on Shark Tank, has openly expressed his concerns about the concept of scaling, emphasizing that it is a journey of stages rather than a leap to immediate success. In an Instagram post on January 8, 2025, he explained,

"One of the things people talk a lot about is scale. That word always makes me nervous."

This statement revealed his cautious approach to business growth, which prioritized sustainable growth over rapid scaling. Robert Herjavec highlighted the risks of expanding too quickly, emphasizing the importance of balancing growth with resource management to ensure long-term success.

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Shark Tank star Robert Herjavec's approach to scaling a business: Caution and strategy

The stages of business growth

Herjavec explained that, during his earlier years in business, scaling was not the primary focus. Instead, his team centered on growth and moving to the next plateau. He described this as a stage-by-stage journey rather than a leap toward immediate expansion. As he recalled, when his business was smaller—ranging from $50 million to $300 million—discussions never revolved around scaling.

The Shark Tank investor underscored the distinction between focusing on scaling and focusing on steady, manageable growth that would prepare the company for future stages.

"We sat around and talked about growth. We had a vision, but we talked about getting to the next plateau." he reflected.

He explained that business growth, like climbing a mountain, progresses through stages, with each summit revealing a new set of challenges and expectations. He stressed that growth should be viewed as a continuous journey rather than an immediate goal.

“You have new problems and you have new expectations,” he said.

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The risks of scaling too quickly

A significant concern for Herjavec was the risk of scaling too rapidly, particularly for smaller businesses. He cautioned that, if companies moved too quickly toward building systems and expanding, they could deplete vital resources, such as cash. This risk could hinder a business's ability to sustain growth and remain stable. He explained,

"If you build scale and systems too quickly, when you're a small business, you're going to use resources like cash or something that may not happen for a long time."

The Shark Tank investor emphasized the importance of taking a measured approach to growth, one that accounted for available resources and the business's ability to manage the complexities of scaling.

Herjavec's concerns about rapid scaling aligned with his broader belief that businesses should build strong foundations before moving to the next phase. He pointed out that rushing into expansion could lead to overextension, especially when the necessary infrastructure and financial resources were not yet in place to support it.

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Sustainable growth and building with intention

In his Instagram post, the Shark Tank investor also reinforced his philosophy of sustainable growth. He wrote,

"Growth is a journey of stages, not leaps," emphasizing that scaling should not be rushed.

He stressed that the key to successful business growth was focusing on sustainability, rather than pursuing scale for the sake of scale.

"The key isn’t rushing to 'scale' for the sake of it—it’s focusing on sustainable growth that prepares you for the next step without overextending your resources," he underscored in the post.

Herjavec’s message was clear: the process of building a business requires thoughtful planning, stage-by-stage growth, and resource management to ensure that the company remains stable as it expands.

The Shark Tank investor also highlighted the importance of building with intention and adapting to each stage of growth. He explained that businesses must approach growth with a mindset that prioritizes the necessary steps to achieve success, rather than simply looking for rapid expansion. He wrote,

"Build with intention, adapt with each stage, and keep your eyes on the horizon."

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