Business 101 June 23, 2026

What Entrepreneurs Must Give Up to Scale a Business

By Mikael Borres

Scaling a business always involves a trade-off, experts say.

Every major decision has a tradeoff. The question is which tradeoff you’re willing to accept.

Sustaining profitable growth requires a balance between demand and supply, according to a Harvard Business Review (HBR) article.

Companies need a growth strategy that addresses three interrelated decisions: how fast to grow; where to seek new sources of demand; and how to amass the financial, human, and organizational resources needed to grow.

“Each of those decisions involves trade-offs that must be considered in concert with a company’s overall business strategy, its capabilities and culture, and external market dynamics,” Gary Pisano wrote for HBR in the March 2024 article.

For Armando Bartolome, a franchise expert and business mentor who has guided Filipino entrepreneurs for over 35 years, scaling is “removing the unwanted baggage” that can weigh a business down.

“When you try to scale up, you have to review where it is that you want to go, how far you want to go, and what your commitment is,” Bartolome said in a Google Meet interview with The Business Manual.

Reflecting Before Reviewing Growth Plans

To find the “unwanted baggage,” Bartolome advised entrepreneurs to review existing business concepts. This allows an entrepreneur to determine which ideas are relevant and viable to a business’s scaling plans.

He added that entrepreneurs should know what they have to face when they scale:

“For example: If you started in a small town and you want to scale to a different or a bigger town with a bigger population, you have to identify, ‘Will my concept be viable for them or acceptable to them? Will my products or my services be competitive as I'm a newcomer to the town? How fast can people understand the concept that I'm bringing in?’”

Pisano advised businesses to be aware of non-financial constraints like systems, processes, human capital, and culture.

“Obtaining any growth-fueling resource—money, people, brand, access to capabilities, and so on—involves trade-offs,” he wrote.

Organic resources may align more with company values, but take time to build. Outsourcing, on the other hand, may lead to faster growth, but can mean less control over activities critical to the value proposition.

Letting Go of Comfort and Old Habits

Scaling your business may mean learning to live without much comfort. An entrepreneur may have to leave their environment if they feel like it restricts their ability to run and grow their business.

They may need to cut professional ties with people who do not contribute to the business’s growth. They might also have to lose the ability to maintain a work-life balance or stable finances in the hope of reaching their entrepreneurial goals.

Many, moreover, might find giving up these things too difficult in an emotional sense. They not only have to let go of comfort but also of familiar cultures and ideas, including people whose lives have intertwined with the entrepreneurial.

Frequently Asked Questions

What trade-offs do entrepreneurs need to accept when scaling a business?

According to Harvard Business Review and franchise expert Armando Bartolome, entrepreneurs must accept trade-offs across three decisions: how fast to grow, where to find new demand, and how to acquire the financial, human, and organizational resources needed — each of which must align with overall business strategy.

What should Filipino entrepreneurs review before deciding to scale their business?

Entrepreneurs should assess whether their existing business concept remains viable in the new market — evaluating product competitiveness, consumer acceptance, and logistical readiness. They must also account for non-financial constraints including systems, processes, human capital, and organizational culture before committing to any scaling plan.

What do Filipino entrepreneurs risk losing financially when they scale?

Franchise expert Armando Bartolome advises entrepreneurs to expect financial losses of at least one to two years during scaling. A DTI-commissioned BCG study found that over 70% of Filipino MSMEs expected better 2025 performance, but financing access remained the most persistent challenge to sustainable growth.

How does the Philippine MSME failure rate affect decisions to scale a business?

Philippine MSMEs face one of ASEAN's highest business failure rates. A 2018 study found that only six in ten exporting MSMEs survive their first year, dropping to fewer than four in ten by year four. This makes the decision to scale — and its timing — strategically high-stakes.

What is the right time to scale a business, according to business experts?

There is no universally correct timing for scaling, according to Gary Pisano of Harvard Business Review and Armando Bartolome. The decision should be driven by market-specific capability advantage, strategic clarity, and commitment to the goal — not by waiting for ideal market conditions that may never fully materialize.