You must have a product that does the job – i.e. you must have found product/market fit (see a separate article on product/market fit).
You must have a business model that works – i.e. you have unit economics that produce a positive result, so that for every cycle the engine of your business turns you earn money, rather than lose it. Only then does it make sense to rev up the engine. (see a separate article on Business Model)
Some acid test type of questions to verify you really are ready to focus on just scaling your business:
- You can make your business cashflow positive within the next 3 months
- At least 1 of the 5 biggest customer deals have been completed successfully without any involvement of any of the founders.
- You must have at least two non-founder team members generating more annual revenue than their all-in cost is to the company.
- You must have at least one non-founder team member who is bringing in more revenue than the customer-facing founder.
- The Founder can switch her email off for 2 weeks and it causes no dent in revenue