Jason Lemkin's red flags for VPs who can't scale past $10M ARR

The Gist

• Lemkin identifies 6 signs a VP can't scale, including lack of organization and hiring clones
• Top VPs recruit 2-3 strong candidates per role within weeks, a rare skill
• Failure to build diverse teams or delegate to strong directors limits growth potential

• VPs who can't scale past $10M ARR often lack organizational skills or fail to recruit strong managers under them.
• Hiring friends or similar individuals may work early but doesn't scale; diversity in talent is crucial for growth.
• Excuses about increasing revenue targets signal a VP's inability to scale.
• A VP threatening to quit over hiring a CRO or SVP above them is a red flag.
• If bookings don't increase materially in 2 quarters, the VP has likely reached their limits.

• Assess organizational structure and dashboards by $5M ARR to ensure scalability.
• Recruit diverse and experienced managers under VPs early to prepare for scaling.
• Monitor excuses about revenue targets as a sign of scalability issues.
• Consider hiring a CRO or SVP if a VP resists or shows inability to scale.

• $5M-$10M ARR (Threshold where VPs often struggle to scale without better organization or leadership.)
• 2 quarters (Timeframe to assess if a VP can materially increase bookings before reaching their limits.)