Scaling TOO Quickly?
Scaling TOO Quickly?
What does it take to become a successful entrepreneur?
I was recently asked what one characteristic trait someone must possess to be a successful entrepreneur. I believe it's mental toughness. While this is something you can develop over time, mental toughness is crucial. On one hand, being your own boss is a huge blessing, something many dream about as W-2 employees. But the reality is that being your own boss can also feel like a curse. You have to push yourself to make things happen, and that requires mental toughness because you will face adversity.
You need enough mental toughness to start—many people never begin because of fear, the fear of the unknown. But once you start, you have to cultivate and strengthen that toughness to weather the storms you’ll face.
The second part is understanding that entrepreneurs drive our country, our world, and our economies. I remember hearing a study that said over 80% of all millionaires own their own businesses. As a young 20-year-old who thought I had it all figured out, that stat stuck with me. I realized I only had a 20% chance of becoming a millionaire as a W-2 employee, and I didn’t like those odds. That drove me to pursue entrepreneurship.
Why should business owners be cautious about scaling too quickly?
One of the poor decisions I’ve made is scaling too quickly. I have a huge appetite for growth, which I believe is God-given. I feel called to achieve big things and be a blessing to others. But on the other side, scaling can get out of control if done too fast or without enough thought. I’ve experienced this at least twice, and it has cost me hundreds of thousands of dollars.
For example, in 2015, I started in real estate. By 2016 or 2017, we had flipped about 15 houses and made around $400,000. I remember feeling frustrated that we weren’t growing fast enough. I complained about not having systems in place, like how we bought materials. But I never stepped back to realize we made $400,000 with just four people, including myself. Sometimes, those are the glory days when things were simpler.
Now, with a larger team of 13 people, higher payroll, and overhead, we need to do 20 deals a month just to break even. Scaling too quickly has its downsides. Everyone needs to decide for themselves if they’re truly ready to scale. Are you ready mentally, financially, and logistically? Do you have the right back-office support? If you’re ready to scale and feel called to it, go for it. But for me, I scaled haphazardly, and it cost me.
How can personality assessments help business owners hire the right team?
One thing I’ve learned through this process is the importance of understanding who you are. This isn’t limited to real estate but to any business. I believe you need to understand who God made you to be. We are all genetically different, and that uniqueness should guide how we build our teams.
I recommend taking tests like the DISC assessment, Myers-Briggs, Predictive Index, or Culture Index. These can help you better understand yourself and the type of people you need to hire. If I had gained clarity earlier that I’m a visionary, it would have shaped my hiring decisions. For example, I’m a maverick in the Predictive Index, driven by strategy and constantly moving forward.
By knowing your strengths and weaknesses, you can hire the right people to complement you. Start by understanding yourself first. Take these assessments, or get someone you trust to help you interpret them. Tony Robbins even offers a DISC assessment on his site. Once you have clarity on what you’re not good at, you can hire people to fill those gaps. It’s not just about skills—it’s genetic and spiritual. This approach will help you grow efficiently, rather than trying to do everything yourself.
What are the benefits of joining a mastermind group to grow your business?
One of the best decisions I ever made, and one that has made me an unimaginable amount of money, was joining a mastermind. Back in 2015, when we went full-time in real estate, I posted a video on my channel, Tyler Buys Houses, about our first three deals, where we made a significant profit—$46,000 on the first deal alone.
At that time, I thought I was better than I actually was, but it was mostly luck and the power of real estate. I quickly realized how much I didn’t know and wanted to be part of something bigger. So, I joined a mastermind and was able to rub shoulders with some of the top investors in the country. This helped me scale quickly because I made the tough decision to invest in myself.
Joining a good mastermind often comes with a cost, but instead of focusing on that, I focused on the reward. The knowledge and experience I gained from others saved me from making costly mistakes. It wasn’t just about the decision to join; it was the mindset shift, learning from the experience of others, and getting around people with more expertise. It wasn’t an immediate dollar-in, dollar-out return like advertising, but it changed my mindset, gave me new ideas, and inspired me to scale myself and my business.
*This interview has been edited and condensed for clarity.*
