Shift when you are in the red line,

Advice I was given when learning to drive a stick shift.

The gear you are in has an operating range, as you accelerate and approach the edge of its range, you need to shift to a higher gear to continue accelerating.

The needle on your RPM gauge helps you understand when you approach the edge of your gear’s operational range- the red line.

Startups grow faster than their people.

As the growth accelerates, you will approach a red line.

This is the time you shift.

People have skills related to size and scale.

Everybody has an operating range.

Some people have very broad operating ranges, and some have very narrow.

A sales person who is great at personal selling, might drive up to $1M/month before they redline. In order to keep accelerating, you need to bring in a sales person who operational range is $1M-$20M/month.

It is easiest to see this with CEO’s. One whose operational range is to run a 0-$200M company works differently than one that works in the $200M-$5B range as does one who runs a $5B-$50B enterprise etc.

It is important to understand your operational range,

and know when you red line.

Then you will manage the shifts (and not be shifted)

Original Linkedin Post: http://bit.ly/2tDW65C