Escape the Revenue Trap


I see this pattern all the time in scale-ups that look healthy on paper but feel increasingly strained in practice.

It happens when revenue becomes the goal instead of the result.

In Science of Scaling, Benjamin Hardy makes a deceptively simple but critical point:

Scale doesn’t happen by chasing upside, it happens by enforcing constraints.

Specifically, by defining a floor -- the minimum standard below which you no longer operate

if you’re serious about building the future you say you want.

For scale-up founders, nowhere is this more relevant, or more routinely violated, than in how revenue decisions get made.

The Signal

Revenue is coming in, but the system is working harder than it should.

Observable signals:

  • Revenue growth without margin improvement.
  • Teams stretched thin supporting edge cases, custom work, or “just this once” deals.
  • Sales forecasts that are unreliable because every deal is structurally different.
  • Leadership debates dominated by tradeoffs instead of clear priorities.

Nothing here feels dramatic.

It feels functional, manageable, viable.

That’s exactly why the pattern sticks.

The cost compounds quietly: increased complexity, slower execution, lower leverage, shrinking margin and a team that feels increasingly disconnected from direct impact.

The Root Cause

The root cause isn’t desperation or lack of discipline, it’s a deeply embedded fallacy that all revenue is good revenue.

That belief is reinforced early in the founder journey, when cash flow solves existential problems and flexibility is an advantage. But at the scale-up stage, the same instinct becomes a liability.

Revenue-chasing persists because:

  • Payroll, overhead, and growth expectations create real pressure to “keep deals moving.”
  • Founders default to pattern recognition that used to work.
  • Short-term revenue creates emotional relief, even when it introduces long-term drag.
  • There is no explicit, shared standard for what qualifies as an acceptable opportunity.

Without a standard, every deal becomes a conversation.

And over time, the business drifts, not because of a series of bad decisions,

but because too many unfiltered, unqualified decisions pile up.

The Tool: The Floor

The tool is the Floor: a clearly defined minimum bar for revenue opportunities.

If an opportunity falls below it, you do not pursue it,

regardless of how attractive the near-term cash looks.

This is not about being rigid.

It’s about being intentional.

The Floor functions as:

  • A discernment tool for founders and leadership teams
  • A decision filter that removes ambiguity from opportunity evaluations
  • A protective mechanism for margin, focus, and team capacity

When the Floor is clear, revenue decisions stop being emotional or situational.

They become structural.

The Technique: How to Define and Use Your Floor

Step 1: Establish the Minimum Criteria

As a leadership team, answer these plainly:

  • Does this satisfy our minimum gross margin for this work?
  • Does this impose an acceptable level of operational complexity?
  • Does this opportunity reinforce our core ICP?
  • Can we deliver this using existing systems and roles?
  • Would we want more of this exact work six or twelve months from now?

A single “no” is enough to disqualify the opportunity.

Step 2: Make the Floor Explicit

Document it, share it, repeat it and use it transparently.

For example:

“We do not pursue revenue that:
Falls below X% gross margin
Requires custom workflows or exceptions
Distracts from our primary customer profile
Introduces complexity we can’t staff sustainably”

If the Floor lives only in your head, it will fail under pressure.

Step 3: Apply It Early

The Floor should be used before:

  • Custom proposals are scoped
  • Discounts are discussed
  • Partnerships are negotiated
  • Leadership time is consumed debating tradeoffs

If the Floor isn’t met, the answer is no.

Not “let’s see,” not “just this once,” no.

Step 4: Reinforce It as a System

  • Train sales and leadership on the Floor.
  • Reference it directly in deal reviews.
  • Track how often it prevents misaligned revenue.
  • Normalize disciplined rejection as a sign of maturity.

This is how discernment moves from personality-driven to system-supported.

Why It Works

The Floor works because it replaces reactive decision-making with structural clarity.

  • It reduces cognitive load by eliminating false options.
  • It aligns teams around standards instead of opinions.
  • It protects margin without requiring constant vigilance.
  • It converts strategy from an aspiration into an operating constraint.

Most importantly, it interrupts the feedback loop where short-term revenue relief creates long-term organizational friction.

This is not about slowing growth, it’s about ensuring that growth compounds instead of complicates.

Your Turn

Reply and let me know, honestly: what kind of revenue are you currently tolerating that you wouldn’t want to build your future around?

And if this surfaced the realization that your business doesn’t have a clear Floor, or that it exists informally and inconsistently, I use Signal Sessions to help founders define these constraints, pressure-test decision filters and get their floor installed ASAP.

This isn’t a motivation problem,

it’s a systems problem.

We can solve it.

The Signal Report

A weekly bulletin for leaders who have outgrown founder-led hustle and are ready to build systems that sustain their vision and scale their business. Each issue decodes one “signal” — those subtle patterns that reveal friction, bottlenecks or untapped leverage. You’ll learn what it means, why it matters and how to fix it, all in 5 minutes or less, so you can shift from signal to system and from vision to velocity.

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