The Growth Trap: Why Most Brokers Get Stuck
Growth vs. Scaling: The Fork in the Road for Mortgage Brokerages
“Are you growing... or are you scaling?”
It’s a deceptively simple question. But in over two decades of working with mortgage brokers—from fresh solo operators to established multi-broker practices—I've found it to be one of the most important strategic questions a business owner can ask.
Most brokers I meet tell me they’re scaling. But when we lift the hood, we often discover they’re really just growing. And the difference matters—a lot.
In this blog, I want to unpack the critical distinction between growth and scaling in the context of mortgage broking. I’ll share the telltale signs, common pitfalls, and most importantly, what to do if you want to truly scale—without blowing out your costs, burning out your people, or building a business that’s only sustainable on your own shoulders.
Let’s get into it.
Growth Is Additive. Scaling Is Multiplicative.
Let’s start with definitions.
Growth means increasing your revenue, deal volume, or market share. Sounds great, right? But growth also tends to bring more staff, more manual processes, more admin, and more stress. You make more money, but you also work longer hours, hire more people, and introduce more moving parts. Your revenue grows, but so does your complexity.
Scaling, on the other hand, is what happens when you increase output without increasing input at the same rate. It’s about improving leverage. Scaling means building the kind of business where you don’t need to throw people or hours at every new problem. You’re building capacity, not just headcount.
Let me put it another way:
Growth adds people. Scaling builds capability.
And in our world—mortgage broking—that distinction makes all the difference between being stuck in the grind or creating a business that gives you time, money, and freedom.
The Growth Trap: Why Most Brokers Get Stuck
If growth feels good, why is it a trap?
Because growth without scale leads to what I call “founder fatigue.” You, as the business owner or lead broker, become the bottleneck. Your team runs to you for decisions. Your systems are duct-taped together. You’re doing well, but it feels harder, not easier.
Here are some signs you’re stuck in the growth trap:
You’re hiring to solve every problem. Need to improve turnaround times? Hire. Need to increase lodgement volume? Hire. It’s endless.
Your costs are rising faster than your revenue. You’re doing more business, but your margins aren’t improving.
You’re constantly firefighting. Every day feels reactive. You’re solving problems you thought you’d already solved.
Your business is overly dependent on you. Without you, things slow down—or fall apart.
Sound familiar?
This is what we see when growth is mistaken for scaling. But there’s a better way.
Scaling Smarter: What It Really Looks Like
At Recludo Group, we work closely with mortgage brokers who are ready to stop chasing volume and start building value. And here’s what scaling really looks like in that world:
1. Systemised Delivery
Scaling starts with repeatability. You don’t want to rebuild the wheel for every client. That’s why we help brokers map and systemise their client journey—right from first contact to post-settlement care.
A systemised workflow allows your team to deliver consistent, high-quality service without reinventing the wheel every time.
Ask yourself: Could someone else in your team deliver the same client experience without you?
2. Technology That Enables, Not Confuses
Tech is a multiplier—if it’s used properly. The right tech stack (CRM, automation, communication tools) reduces admin, increases transparency, and boosts productivity.
But more tech isn’t always better. Many brokers have three different systems that don’t talk to each other. That’s not scaling—it’s chaos in disguise.
We guide our brokers to choose integrated, scalable platforms that align with their business model—and their team’s capability.
3. Roles and Responsibilities That Are Crystal Clear
Scaling businesses have one thing in common: everyone knows what “done well” looks like in their role. There’s no ambiguity, no duplication, and no wasted motion.
Compare that to a growing brokerage, where people wear five hats and trip over each other trying to get things done.
One of the first things we do with clients is help them clarify their org structure—today’s and tomorrow’s—and define what success looks like in each role.
4. Culture of Ownership, Not Dependence
Scaling teams take initiative. They don’t rely on the founder to make every decision. That requires a culture of trust, accountability, and aligned incentives.
We work with business owners to shift their leadership style from “heroic problem solver” to “coach and guide.” It’s a tough transition, but it’s essential.
Key Takeaways: Growth vs. Scaling
Let’s make it plain:
So, where are you right now?
If you’re in growth mode, that’s not a bad thing. Every business needs growth. But scaling is what turns growth into freedom. Scaling is what allows your business to grow without relying on you to keep pedalling faster.
Action Steps: How to Start Scaling Now
Let me give you some practical steps to shift from growth to scale. These are the same principles we use at Recludo when working with high-performance brokerages.
✅ 1. Audit Your Time
Start by asking: Where is your time going? Are you stuck in day-to-day delivery, or focused on building your business?
Try this: Track your activities for a week. Categorise them as “growth” (e.g., doing deals, managing staff) or “scale” (e.g., building systems, hiring leaders). What do you notice?
✅ 2. Map Your Client Journey
Every brokerage has a client journey—even if it’s just in your head. Map out every step from lead to post-settlement.
Then ask: What can be automated? What can be delegated? What’s missing?
You’ll often find opportunities to streamline and standardise.
✅ 3. Define Your Org Chart—Twice
Create two versions of your org chart:
Today’s version: Who does what right now.
Future version: What roles will you need when you double your volume without doubling your headcount?
This exercise helps you think like a business builder—not just a broker.
✅ 4. Invest in Leadership, Not Just Staff
Many brokers hire assistants, processors, or admin staff. That’s fine for growth.
But to scale, you need people who can take ownership—not just tasks. That might mean hiring a team lead, an operations manager, or a marketing coordinator who can own outcomes, not just actions.
✅ 5. Get External Perspective
It’s hard to read the label from inside the bottle. This is why external coaching, consulting, or peer networks are so valuable. They help you see the blind spots—and challenge your assumptions.
Scaling isn’t something you do alone. At Recludo, we work shoulder-to-shoulder with brokers to build scalable business infrastructure—from strategy and systems to structure and succession.
Final Thought: Scaling Isn’t the Goal—Freedom Is.
At the end of the day, scaling is not about getting bigger. It’s about building something that works without you.
It’s about creating the space to:
Lead instead of manage,
Think instead of react,
Build wealth instead of just income.
Because let’s be honest—most of us didn’t start our businesses to become busier. We started them for freedom, control, and purpose.
So if you’re ready to stop running faster and start building smarter, the question isn’t can you scale—it’s will you?
And if you’re not sure where to start, reach out. This is exactly what we do at Recludo Group—help mortgage brokers turn great brokerages into scalable, valuable businesses.
Let’s build a business that works for you, not just because of you.
Ash Playsted
GM – Broker Performance
Recludo Group
Helping mortgage brokers scale without chaos.
