Before you decide to scale up your business, read this...

After successfully setting up a business, every startup founder dreams of scaling it to the next level. Fast growth attracts investors as it shows that an entrepreneur has a great idea in a hot market. But the truth is that many entrepreneurs are not prepared to handle the demands of a bigger business. In fact, scaling up too fast is one of the leading causes of startup failure. A study from California State University showed that startups that had fast revenue growth performed worse in the long term than their slower-growing counterparts.

Zynga, a gaming company is one prime example of how rapid growth can be detrimental to a startup. Founded by CEO Mark Pincus in 2007, Zynga produced popular games such as Texas Hold’Em Poker, Mafia Wars, and Facebook’s most popular game ever, Farmville – all of which had millions of downloads.