5-50 is a method of startup planning in which a company gets 5 customers and works out all the kinks before trying to grow any bigger, then scales to 50 clients, holds there and works out the kinks again.
The method stages growth in two plateaus. At 5 customers the offering is refined until it works; only then does the company scale to 50, where it stops again to resolve the problems that appear at the larger size. At that stage the business should be profitable on a contribution basis at least, a test of its ๐Unit Economics, before it grows further.
๐Noah Auerhahn conveyed the method to ๐Jeff Abrams.
