25 Jan The Most Dangerous Stage of Growth Isn’t Failure (It’s the In-Between)

There’s a moment in every growing company that doesn’t get talked about enough… partly because it doesn’t announce itself clearly.

• Decisions carry weight.
• You’re no longer scrappy.
• The business has real momentum.
• Mistakes cost more than they used to.

But you’re also not “big enough” yet—at least not on paper—to justify a full-time executive hire. This is the danger zone of growth: When things are just complex enough to hurt, but not obvious enough to justify a full-time solution.

And it’s where many companies quietly stall. Not because they’re failing, but because they’re unsure how to move forward without overcommitting or improvising themselves into risk.

When “Winging It” Stops Working

In the early days, improvisation is a strength. Leaders move fast, roles are fluid, and decisions are made with limited data but high conviction. That flexibility is often what allows a company to find its footing in the first place. But, as the business grows, that same improvisation starts to work against you.

• More customers mean more variability.
• More employees mean more coordination.
• More revenue means more exposure to risk.

What once felt like agility begins to feel fragile. Leaders spend more time reacting than anticipating. Decisions take longer because they involve more people and higher stakes. The CEO becomes increasingly involved… not because they want to be, but because gaps start appearing everywhere else.

At first, it’s manageable. Then it becomes exhausting. The company isn’t failing. But, it’s straining. Leaders can feel that strain in their calendars, their inboxes, and the constant sense that something important is being held together by effort instead of structure.

Why Full-Time Still Feels Like Too Much

When pressure increases, the instinct is often to hire. For many CEOs in this stage, a full-time COO or CFO doesn’t feel like the right move yet (and for good reason). The role isn’t fully defined. It’s inevitable that the business model is still evolving. Perhaps the cost feels significant relative to current margins. Finally, committing too early risks locking into the wrong structure.

So, leaders hesitate. They tell themselves they’ll revisit the decision after the next milestone. They ask existing leaders to stretch just a bit more. And, they carry more responsibility themselves than they realistically should.

In that waiting, the business stays stuck between two worlds: no longer simple enough to run on instinct, but not yet structured enough to scale smoothly.

The Cost of Staying in the Middle Too Long

This in-between stage is where problems compound quietly; often without a single breaking point to force action. Decision-making slows because authority is unclear or overly centralized. Teams become frustrated as priorities shift without explanation. High performers absorb more responsibility because “they can handle it.” And, the CEO becomes the de facto system for keeping everything aligned.

Because revenue may still be growing, it’s easy to normalize this tension. Leaders assume it’s “just what growth feels like.” Yet, over time, the cost becomes real: burnout, missed opportunities, inconsistent execution, and leadership fatigue that no amount of effort can fix.

Staying in the middle too long doesn’t just slow growth. It erodes confidence in the business’s ability to handle what’s next.

Why Fractional Leadership Fits This Moment So Well

This is where fractional leadership often makes the most sense. Not as a stopgap, but as a deliberate strategy. Fractional COOs and CFOs bring seasoned experience precisely when the business needs clarity, discipline, and structure… without forcing a long-term commitment before the role is fully understood. They help leaders stabilize growth transitions by:

• Turning ad hoc processes into repeatable systems
• Replacing intuition-only decisions with visibility and data
• Clarifying ownership so execution doesn’t depend on heroics
• Expanding leadership capacity so the CEO can lead, not triage

Most importantly, they help companies move through the danger zone; not linger in it.

A Realistic Example: Crossing the Gap

Consider a growing services firm that had recently crossed $8M in revenue. Growth was strong, but the founder was still deeply involved in pricing decisions, staffing, and delivery oversight. Margins were tightening, and leadership meetings were dominated by short-term problem-solving.

A full-time COO felt premature. The leadership team couldn’t clearly articulate what the role should own, and the cost felt risky given margin pressure. By bringing in fractional operational leadership, the company gained immediate traction. Decision rights were clarified. Delivery processes were standardized. Leadership meetings shifted from reactive updates to forward-looking planning.

Within a few months, the CEO had regained meaningful bandwidth, the team operated with greater confidence, and leadership could finally define what a full-time role should look like. Based on reality, not guesswork.

The strategy hadn’t changed. The structure had.

Experience Beats Improvisation

The danger zone of growth isn’t about lack of ambition or capability. It’s about timing, and timing matters. Too early for full-time. Too late to wing it.

The companies that navigate this phase successfully don’t push harder or wait it out. They bring in the right experience at the right moment. Just long enough to stabilize, clarify, and prepare for the next stage. Because growth doesn’t stall from lack of effort. It stalls when leaders are forced to choose between overcommitting and under-supporting the business.

Fractional leadership offers a third option; one that keeps momentum intact while reducing risk. For many CEOs, it’s the difference between staying stuck in the middle… and moving forward with confidence.

If you’re needing some advice surrounding this scenario, I’ve helped many companies/CEOs navigate through. If you’d like to pick my brain, you can contact me here via my website or email me directly at michael@consultstraza.com.