Worksheet: Name the next size step

A model built for a smaller business shows the strain in overhead first. This sheet plots overhead against revenue, names the next size step and puts the question on the planning calendar. It builds the Competent step of the check:

The model fits today's size, and whether it still does is asked every year at planning rather than when something breaks.

Step 1. Overhead against revenue, three years

Year	Revenue	Overhead	Overhead as a share of revenue	Revenue growth	Overhead growth
Two years ago
Last year
This year
e.g. Last year	$180m	$27m	15%	12%	18%

Overhead growing as fast as revenue, or faster, says the model has stopped scaling.

Step 2. Name the next size step

Size step (sites, head count, countries, products)	Expected date	What breaks first	Change the model needs	Lead time for that change

If the lead time is longer than the time to the step, start now.

Step 3. Put the question on the planning calendar

Planning meeting	Date	Question asked	Owner	Answer recorded where
Annual plan		Does the model still fit the size we will be next year?

A business under 50 people: name the next step up that would break how you run today. A second site or a full owner's diary are the usual ones. Then plot overhead against revenue for three years.

Done when: the fit of the model is a standing question in the annual planning meeting, with the answer recorded.

Adapted from our own scalable-organisation proposal (Forty 2, 2024).