Growth With Grit: How Smart Businesses Face Scaling Roadblocks Head-On

May 10, 2022 3 min read

The growth paradox: When scaling slows you down

Many businesses reach a stage where growth becomes harder, not easier. Your offerings, systems, or operations that once scaled fluidly now strain under size. The key is to recognize predictable barriers and plan around them, rather than being surprised when they block progress.

Let’s walk through six core hurdles that stall growth and strategies to move past them.

1. Saturated markets and fading upside

The challenge: You’ve tapped your initial base of customers. Beyond that, the additional demand flattens unless you expand your reach.

What to do:

  • Diversify your customer segments (new demographics, geographies)
  • Bundle services or introduce adjacent products to pull in new audiences

M&T support: Tap into Merchant Services so you can accept digital payments easily from new customers, especially online or across regions.

2. Rising acquisition costs

The challenge: The easy referrals are gone; now you’re paying for ads, campaigns, and outreach. The margin between acquisition cost and revenue tightens.

What to do:

  • Optimize marketing funnels; always test, measure, refine
  • Leverage content, partnerships, and referrals (lower cost, higher trust)
  • Reallocate budget toward channels with better ROI

M&T support: Use a Business Line of Credit or Term Loan to fund your next growth push without stressing cash flow.

3. Key customer expectations shift

The challenge: New customers expect more… service, speed, flexibility—you name it. What was acceptable early on may now feel insufficient.

What to do:

  • Audit your customer journey from discovery to after-sales
  • Invest in training or systems for support, onboarding, and retention

M&T support: As you scale, connect your business with Cash Management Tools and Business Checking accounts that streamline operations so your focus can remain on customer experience.

4. Competitive pressure and disruption

The challenge: Competitors or new models emerge. They offer lower prices or newer tech that erodes your edge.

What to do:

  • Innovate continuously (feature updates, service models)
  • Monitor competitive landscape and adjust positioning
  • Cultivate unique strengths (brand, relationships, quality)

M&T support: Consider financing innovation or tech upgrades through Business Financing options.

5. Costs that soar with scale

The challenge: As you grow, your overhead, staff, infrastructure, and support costs grow too. Without careful planning, profits vanish under scale.

What to do:

  • Forecast hidden scaling costs (i.e. additional staff, benefits, tech licenses)
  • Automate or optimize processes to reduce marginal cost per unit
  • Outsource non-core tasks rather than adding full-time roles

M&T support: Leverage Business Lines of Credit to bridge working capital needs as you invest in scaling.

6. Internal capabilities and leadership gaps

The challenge: What got you here won’t always get you further. You may need new skills, leaders, or systems that you don’t yet have.

What to do:

  • Identify gaps in leadership, systems, or talent
  • Invest in training, mentorship, or hiring the missing roles
  • Delegate early so you can focus on growth strategy

M&T support: Explore your M&T Business Education Portal for resources on leadership, planning, and operational efficiency.

A roadmap to navigate these challenges

  1. Map your growth zones: Identify whether you’re in launch, scale, or growth mode and target the challenges relevant to your stage.
  2. Select two barriers to address first: Don’t try to fix everything at once.
  3. Align tools and capital: Use M&T’s suite – merchant services, financing, accounts – to support those first two moves.
  4. Measure and iterate: Monitor metrics tied to each barrier (customer acquisition cost, retention rates, operational efficiency).
  5. Revisit every quarter: Scaling conditions evolve. Adapt your focus and tools.

Why growth that’s built on purpose lasts

True growth isn’t just more; it's better. Businesses that scale thoughtfully, including balancing new customer acquisition, internal system strength, and financial stability last. As you scale, your business becomes a force for your community: jobs, services, economic vitality.

At M&T Bank, we’re invested in your long-term success, not just today’s revenue. Let our tools, education, and capital solutions support your journey.

Explore M&T Business Banking to see how our products can back your next growth phase.

For educational purposes only. Always consult a qualified professional about your personal situation.
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