Business
Amer Atiyah  

Valleys of Death, When Companies are Unable to Scale to the Next Level

You might have reached a point in your business where you have a “big” business, but you’re lacking to make it even “bigger” because of limitations in talent and systems. That’s what’s called: “Valleys of Death”. 

Either revenue or number of employees often determines companies size, and sometimes both. 

There are roughly 28 million firms in the US, of which only 4% ever reach more than $1 million in revenue. Of those firms, only about one out of 10, or 0.4% of all companies, ever make it to $10 million in revenue, and only 17,000 companies surpass $50 million. Finishing out the list, the top 2,500 firms in the US are larger than $500 million, and the top 500 public and private firms exceed $5 billion.

If you take the number of employees to determine the size of the company, you might end up with the following organizational structures:

  • One to three employees where the majority are working from home
  • Eight to twelve employees, an efficient company with a leader and a bunch of helpers
  • 40 to 70 employees, with senior management of four to seven employees, and each, is managing 7 to ten employees, in a company where everyone knows everyone’s name
  • 350 to 500 employees, with seven leaders, with seven managers each, running teams of seven to ten, a very efficient company
  • 2,500 to 3,500 employees, with more multiple of seven to ten in each level of the hierarchy

I will be speaking about how you may be able to go to the next level of the business if you ever have been stuck in one of the valleys of death by embracing a few strategies in marketing, systems, and talents management.

Here is another post in my blog that I think would be great to read about workplace politics. Please drop me a message on my Linkedin profile page.

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