Excellent breakdown on diseconomies of scale in service businesses. The point about complexity being the real enemy is underrated, lots of operators chase growth thinking it solves problems but it just amplifyies operational friction. Built ops infra for a hosptality tech startup that tried to expand from 3 markets to 15 in ayear and watched the quality evaporate cuz local execution got sacrificed for standardization.
Excellent breakdown on diseconomies of scale in service businesses. The point about complexity being the real enemy is underrated, lots of operators chase growth thinking it solves problems but it just amplifyies operational friction. Built ops infra for a hosptality tech startup that tried to expand from 3 markets to 15 in ayear and watched the quality evaporate cuz local execution got sacrificed for standardization.
100% agreed - “dis-economies of scale” is quite a simple yet often overlooked idea that can bite you later when scaling for scale’s sake.