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The business is growing. You’re overwhelmed. Welcome to the small business black hole.
For Alan Pence, founder of the Owner Institute, building a multi-million dollar company didn’t come from working more hours or saying yes to everything. It came from realizing that what got him to $1M in revenue was exactly what was keeping him from going further. Like many founders, Alan hit the wall. The point where the systems broke down, burnout started creeping in. That wall? He calls it the “small business black hole.”
In this episode of Rising Tide Startups, we sit down with Alan to unpack the patterns he’s seen across hundreds of businesses. He explains why burnout, blurred vision, and stalled growth are symptoms of a deeper issue: the business is built around the founder instead of beyond them. Alan shares how to shift from being stuck in the day-to-day to building a company that scales sustainably—with clear systems, empowered leadership, and a renewed sense of purpose.
Whether you’re hitting a revenue ceiling, burned out from doing everything yourself, or wondering if your business is building a life you want—this episode is for you. It’s honest, practical, and filled with the kind of insights you’ll wish you had five years ago.
Key Takeaways:
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- Founders often become the bottleneck. Many businesses stall because the owner is doing too much or holding on too tightly.
- Start with personal vision. You need to know what kind of life you want before you build a business to support it.
- You can’t scale if you try to do everything. At each stage, the owner must shift roles, delegate, and level up skills.
- Hire for what drains you. Free up your time and energy by handing off tasks that wear you down.
- Understanding your numbers helps you grow without guessing or overspending.
- Common Barriers at Different Stages
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- $1M Stage: Founder is doing too much. Needs to focus on sales and delegate everything else.
- $2–5M Stage: Growth requires key operational hires to handle increased complexity.
- $5–10M Stage: Need to build a real leadership team with specialized functions (sales, ops, HR, etc.).
- $10M+ Stage: Owner must extract themselves from what they’re best at and structure scalable systems.
Listen to the full conversation here:
- YouTube: https://www.youtube.com/@risingtidestartups
- Apple Podcast: https://podcasts.apple.com/us/podcast/rising-tide-startups/id1330525474
- Spotify: https://open.spotify.com/show/2eq7unl70TRPsBhjLEsNZR
Connect with Alan:
- LinkedIn: https://www.linkedin.com/in/alanpentz/
- Owner Institute: https://www.ownerinstitute.com/
Closing thought: “Small businesses stay small for a reason. That reason is the owner.”
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