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From 10 to 50 Employees: the 6 Breakdowns that Hinder Growth (and how to Anticipate Them)

Picture of Juliette Saez-Lopez

Juliette Saez-Lopez

Verified User

The Invisible Wall of Growth

You’ve passed the 10-employee mark. Congratulations. Your agency is thriving, clients are coming in, and you’re even recruiting regularly.

And yet, something is amiss.

Decisions take longer. Some employees seem lost. You spend your days putting out fires instead of growing your business. Financial management? You do it “by feel” between client appointments.

Welcome to the 10-50 employee zone. This no man’s land where 70% of agencies struggle to structure their growth without losing their soul. The problem isn’t your vision. Nor your talent. It’s that your startup organization is no longer suitable. And that of a structured SME is not yet in place.

Between the two? Six major organizational breakdowns. Six moments where everything can turn for the better… or collapse.

BREAKDOWN 1: the Founder who Can No Longer Manage Everything

The Principle: from “Superhero” to “Orchestra Conductor”

At 10 employees, you were everywhere. Involved in quotes, recruitment, client briefs, financial management. You still approve 80% of important decisions, and your employees systematically await your green light to proceed. It’s normal; you created this company, it’s your baby.

However, at 25 employees, this model becomes your worst enemy. You have become the bottleneck of your own growth.

The figures are stark: 30% of companies fail in their first growth phase due to what is called a “leadership crisis.” The founder fails to transition from “I do everything” mode to “I delegate” mode. The result? Executive burnout, frustrated teams, waiting clients, missed opportunities.

Even worse: founders spend an average of 60% of their time on operational tasks that could be delegated. Meanwhile, who develops strategic partnerships? Who works on the 3-year vision? Who identifies new growth drivers?

The “all in my head” model doesn’t scale. At 10 employees, it still works. At 20, you’re constantly overwhelmed. At 30, it’s guaranteed burnout, for you and for your teams who are spinning their wheels waiting for your arbitration.

How to overcome this hurdle?

The shift begins with a painful realization: you can no longer be excellent everywhere. You’ll have to choose. Identify your three to five truly strategic decisions, those that ONLY you can make because they shape the agency’s future. The rest? You must delegate it. Truly delegate. Not just distribute tasks while maintaining final control.

Specifically, this involves:

  • Train your first managers so they can make autonomous decisions
  • Give them a clear scope of decision-making with clear rules
  • Accept that “80% done” by someone else is infinitely better than “perfect” by you but in three weeks
  • Implement processes that allow teams to move forward without needing your input ten times a day

It’s terrifying at first. You feel like you’re losing control. But the exact opposite happens: you finally become available again for WHAT MATTERS. The vision. Business development. Strategic clients. Decisions that truly impact profitability.

BREAKDOWN 2: the End of Informal Management

The Principle: from “We just Talk” to “We get Structured”

Do you remember the blessed time when everyone naturally crossed paths in the open space? When decisions were made around the coffee machine? When a simple “Hey, are you handling this project?” was enough to distribute the work?

At 30 employees, that time is over. And you see it every day in these absurd situations that multiply: “Wait, I thought you were handling this client?”, improvised meetings that last three hours without producing anything, critical information circulating via instant messaging and getting lost in the flow. No one really knows who does what, who decides what, who needs to approve what.

Research on corporate communication is clear: from 15 employees, informal communication becomes structurally inefficient. Beyond this threshold, it’s impossible for everyone to maintain a quality relationship with all employees. The result? Information gets lost, redundancies multiply, tensions emerge.

The figures speak for themselves: 24% of productivity evaporates due to poor internal communication. A quarter of your production capacity goes up in smoke simply because no one knows exactly who is responsible for what.

What kills agencies at this stage is the absence of a clear management structure. At 50 employees, navigating without an organizational chart is like flying an airliner by instruments. You hope everyone intuitively understands their role, but in reality, it’s widespread ambiguity.

How to overcome this hurdle?

The temptation to resist is strong. “We’re not going to become a big bureaucratic company with organizational charts and heavy processes!” Except that structuring isn’t bureaucratizing. It’s simply clarifying. Who does what. Who decides what. How information flows.

It starts with an organizational chart. Even basic. Even imperfect. The important thing is that everyone knows where they stand in the organization and who to approach for different issues. Then come roles and responsibilities: for each key position, what falls under their decision? What needs to be escalated? What are their areas of autonomy?

Then simple management rituals:

  • A weekly team sync to coordinate work
  • A monthly steering committee to align priorities
  • Quarterly retrospectives to capitalize on learnings

The goal isn’t to multiply meetings, but to establish regular moments where information flows in a structured rather than chaotic manner. Finally, clarify decision-making channels: for each type of decision, who is informed, who is consulted, who decides, who executes?

The result? Everyone knows who does what, who decides what, and how to escalate information. No more “I thought it was you” and “no one told me.” Make way for a fluid organization where everyone can work calmly within their scope.

BREAKDOWN 3: “Gut Feeling” Management is No Longer Enough

The Principle: from “It’s Going Well” to “I Manage by Metrics”

Let’s be honest: at 10 employees, you managed your agency by feel. Revenue came in, salaries were paid, and you had a vague idea of your margin. That was largely enough. When everything was in your head and you could follow each project in detail, there was no need for sophisticated dashboards.

But today, with 30 employees, 50 ongoing projects, and several million euros in revenue, reality catches up with you. You discover your financial results two months after closing. It’s impossible to know if a project is profitable IN PROGRESS; you find out when it’s too late to correct course. Strategic decisions are still made “by instinct” because you simply don’t have the data to make factual choices.

And then there’s this recurring moment of panic: your favorite spreadsheet, the one that centralizes all your management, starts to show its limits. The formulas no longer keep up, data is scattered across fifteen different files, and every time an employee opens it, you pray they don’t break everything.

SME statistics are alarming: 66% of them encounter major financial difficulties, often linked to faulty management. Conversely, companies that have implemented structured management show operational margins 30 to 50% higher than their competitors. It’s not that they are commercially better. It’s that they know exactly where they make and lose money, and they adjust accordingly.

How to overcome this hurdle?

The transition to structured management begins by identifying your five to ten truly critical indicators. Not fifty useless metrics that obscure the essential, but the few figures that tell you whether or not you are on track:

  • Monthly and projected revenue
  • Profitability per project and per client
  • Team utilization rate
  • 3-month cash flow forecast
  • Client payment terms
  • Customer acquisition cost

Then, you need to be able to track these indicators IN REAL TIME. Not at D+60 when the accounts are finally closed. In real time. This involves connecting your data, automating reporting, building dashboards that update automatically. And most importantly, establishing a management discipline: a weekly moment where you review your figures, identify discrepancies, and decide on corrective actions.

This transformation is radical. You move from intuitive management to data-driven management. Your decisions are no longer based on impressions but on facts. You identify projects that are drifting before they sink your profitability. You spot clients who consistently push the limits. You adjust your prices based on real data rather than assumptions.

The result? You know exactly where you stand, at all times. Year-end surprises disappear. You finally manage your agency rather than enduring it.

BREAKDOWN 4: Chaotic Recruitment

The Principle: from “We Take who We Find” to “We Attract and Retain the Best”

You know the drill. An employee announces their departure in three weeks. Panic on board. You urgently post an ad, you receive fifteen resumes, three of which are decent, you conduct three quick interviews between two client meetings, and you hire the “least bad” hoping it goes well.

The new hire arrives. No one really has time to take care of them. They’re given a computer, vaguely introduced to the team, and expected to fend for themselves. Three months later, either they’ve survived and stuck it out despite the obstacle course, or they’re already looking elsewhere. In the latter case, you’re back to square one.

Result? An exploding turnover rate. 50% departures in the first year is not uncommon in agencies that don’t structure their recruitment and integration. And meanwhile, you struggle to attract truly good profiles, those who have a choice and who scrutinize the signs of a professional organization.

The figures are clear: 52% of small and medium-sized businesses cite recruitment quality as their number one challenge. Even more problematic, each bad hire costs you between 30% and 50% of the annual salary for the position in question. Take a profile at €40K: a failed recruitment means €12K to €20K goes up in smoke between search time, aborted integration, decreased productivity, and the new recruitment to launch.

How to overcome this hurdle?

The shift begins by structuring recruitment. This doesn’t mean becoming rigid or corporate, but simply professionalizing the process. Clearly define the desired profile before posting the ad. Establish a coherent recruitment process with several steps that truly allow for evaluating skills AND cultural fit. Train your managers to conduct effective interviews rather than casual chats.

Next comes onboarding, the neglected aspect of most agencies. Research shows: an employee’s first three months determine whether they stay or leave. Structured onboarding can reduce turnover by 25% and increase productivity by 11% from the first few months. Specifically, this means:

  • A 90-day integration plan planned in advance
  • A dedicated buddy who supports the new hire daily
  • Regular check-ins for quick adjustments
  • Real training on the agency’s tools and methods

Beyond recruitment, you need to think about retention. Your best employees have options. If they stay with you, it’s not by default but because they find value there. Defining clear career paths, even in a 30-employee structure, is possible. Show that skill development is valued. Create opportunities for progression, even lateral ones.

Finally, work on your employer brand. At this stage, you don’t need sophisticated marketing campaigns. Just consistency: are your current employees proud to work for you? Do they speak positively about you to others? Is your company culture distinctive enough to attract the profiles you’re targeting?

The result is an ability to attract the right profiles, integrate them effectively, and retain them long enough to make the investment profitable. You break out of the vicious cycle of constant recruitment to enter a virtuous cycle where your teams stabilize and develop their skills.

BREAKDOWN 5: Role Specialization

The Principle: from “Swiss Army Knife” to “Expert”

In the beginning, it was simple. Everyone did a bit of everything. Your employees juggled prospecting, production, client follow-up, and invoicing. This versatility was even a source of pride: “Here, no silos, we’re all hands-on!”

However, at 30 employees, this model starts to show its limits. Your teams do a bit of everything, but nothing really well. Service quality gradually erodes. You lose bids against more structured agencies that can mobilize true experts on each subject. And above all, you feel that this forced versatility prevents your employees from truly excelling anywhere.

The data is clear: agencies that have structured their roles and created centers of expertise show 40% higher productivity than those that maintain a generalist model. It’s not that they work more hours. It’s that they are more efficient on each task because everyone has specialized in their area.

From 20 employees, versatility becomes a hindrance rather than an asset. Your sales reps who also manage production do neither correctly. Your consultants who also have to prospect hate that part of the job and neglect it. Result: everyone is frustrated and underperforming.

How to overcome this hurdle?

The shift requires identifying the major functions to separate. Sales versus production, obviously. But also project management versus execution. Business development versus client management. Operations versus support functions. The goal isn’t to create hermetic castes, but to allow everyone to develop true expertise in their field.

Specifically, this means creating centers of expertise:

  • A sales division with profiles that spend their time prospecting, pitching, negotiating
  • A production division with subject matter experts who excel in their discipline
  • A management division that ensures everything runs smoothly regarding planning, budget, and quality
  • Support functions that manage administration, HR, and accounting without burdening operational staff

This specialization also implies reviewing your recruitment. You can no longer settle for versatile junior profiles. You need to start attracting more senior profiles, with true sectoral or functional expertise. People who bring specialized know-how that you don’t have internally.

The transition is delicate. Some long-standing employees, accustomed to doing everything, might perceive this specialization as being sidelined. Hence the importance of supporting the transformation: explaining why this evolution is necessary, involving teams in defining new scopes, and training everyone on their new responsibilities.

The result? Everyone excels in their area rather than being mediocre everywhere. Service quality improves significantly. Clients feel it immediately. And your employees, freed from tasks they disliked, can finally focus on what they do best.

BREAKPOINT 6: the Diluting Company Culture

The Principle: from “Everyone Knows Everyone” to “We Share Values”

Do you remember your first ten hires? They were all chosen as much for their cultural fit as for their skills. You spent time together, not just at the office. There was that palpable “company spirit,” that common way of approaching problems, that camaraderie that meant you understood each other with just a hint.

At 35 people, something cracked. New hires don’t really grasp the agency’s DNA. The values that were consensual at the beginning have become blurred. Cliques start forming between old-timers and new recruits, between different teams. The atmosphere is no longer the same, and you don’t really know why or how to fix it.

Statistics are relentless: between 10 and 50 people, employee engagement drops by an average of 11%. It’s not that they are individually less competent or less motivated. It’s that the bond connecting them to the company has weakened. Conversely, companies that maintain a strong culture show a retention rate 57% higher than the average.

What happens is that implicit culture no longer works. With 10 people, everyone was socialized directly by you, the founder. Everyone naturally integrated the way of doing things, the priorities, the values. But at 30, new hires are integrated by other employees who themselves have their own interpretation of the company culture. The message dilutes, distorts, and gets lost.

How to overcome this hurdle?

The shift begins by formalizing your values. And be careful, not generic corporate bullshit. Real, actionable principles that describe how you make your daily decisions. For example:

  • “We prioritize deliverable quality over short-term profitability”
  • “We say things directly rather than playing politics”
  • “We test quickly rather than planning for a long time”

Next, establish company rituals that embody these values. This could be a monthly lunch where the entire agency gathers. Quarterly retrospectives where successes are celebrated and lessons are learned from failures. Informal moments where different teams mingle. The important thing is to create regular opportunities where the common culture is strengthened.

Communication also becomes crucial. With 10 people, everyone naturally knew where the agency was headed. At 30, you need to communicate explicitly and regularly about the vision, objectives, and major decisions. Not impersonal corporate emails, but authentic exchange moments where the leader shares what’s on their mind.

Finally, involve teams in important decisions. The more the agency grows, the stronger the temptation to make decisions from the executive committee. However, this verticality kills engagement. Employees need to feel that they influence directions, that they are consulted, that their opinions are taken into account. This doesn’t mean deciding everything in a general assembly, but creating spaces for co-construction on topics that concern them.

The result is that everyone continues to pull in the same direction. The agency’s DNA remains intact even as it grows. New hires quickly understand how things work here and what is expected of them. Old-timers don’t feel like they’re betraying the initial spirit. And you, the leader, can finally sleep soundly knowing that the culture is solid enough to survive without you.

Anticipate rather than endure

You will experience these six breakpoints. It’s mathematical. It’s not a question of “if” but of “when” and “how.” All agencies that cross the threshold of 10 to 50 people go through these stages. The difference between those that survive and those that break their growth comes down to one word: anticipation.

The classic trap is to wait until you’re against the wall to react. You tell yourself it will hold up a little longer, that you’ll see when it’s really necessary, that you don’t have time to sit down and structure things. And then one day, there’s a crisis. A key departure that destabilizes the entire organization. A project that goes off track and plummets your annual profitability. A team that no longer communicates. A strategic client lost because quality was no longer up to par.

At that point, you’re in firefighter mode. You’re racing against time. You’re managing emergencies rather than building the future. And you lose months, sometimes years, catching up on structural delays you could have anticipated.

We’ll tell you more in this webinar:

Questions to ask yourself right now:

  • Which breakpoint am I currently struggling with?
  • Which one is coming in the next six months?
  • What can I implement RIGHT NOW to prepare for it?

Growing means accepting change. Your 50-person agency won’t look like your 10-person one. And that’s normal. The challenge? To structure without bureaucratizing. To professionalize without killing the soul. To transition from craftsmanship to industry without losing excellence.

Because ultimately, these six breakpoints are not obstacles. They are thresholds. Doors to cross to get to the next level. And on the other side? An agency that runs without exhausting you, aligned teams that perform, controlled growth that no longer frightens you.

Alright, let’s get to work.

You may be asking yourself these questions?

01 how Do I Know I've Become the Bottleneck?

Typical signs: approvals piling up “on my desk,” slowed decisions, teams waiting, meetings where everything comes back to me. The remedy: delegate clear decision-making scopes, train 2–3 first-line managers, establish the “80% is enough” rule (I only approve critical/strategic items), and set a weekly arbitration ritual.

A simple organizational chart (who does what / who decides what).

Role & responsibility descriptions (areas of autonomy + escalation).

3 rituals: team weekly (operational), monthly Executive Committee meeting (priorities), quarterly retro (learnings).

An explicit decision-making process (informed / consulted / decides / executes).

The “bare minimum”: monthly & forecast revenue, margin per project/client, utilization rate, 3-month cash flow, DSO / payment terms, CAC. Put them in a real-time dashboard, review them weekly, and link each deviation to a dated corrective action.

Scorecard per position (skills + cultural fit) before opening the search.

Standardized interview process (comparable evaluations).

90-day onboarding (objectives, buddy system, follow-up points).

Skill development & visible prospects from the start.

Work on employer branding (internal consistency, testimonials, team rituals).

As soon as quality and speed degrade or profiles are “doing a bit of everything.” Create departments (sales / production / management / support), define internal interfaces & SLAs, offer career paths (lateral & vertical), and support the transition (training, communication on the “why now”).

Goal: excellence through specialization, without creating silos.

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