Top Tips for scaling up your startup — TheCodeWork
Your dream company is not just a concept anymore. It is now a reality. You have launched your product successfully, and it’s gradually gaining popularity! Ah, the perfect picture, no? So the next step now is, of course, scaling up your startup!
Maybe you want to broaden your customer base, increase your brand recognition, or maybe you’re thinking about going global. The options are endless.
But how can you do all of these things? Well, ‘scaling up’ is the answer to your question!
You have to think about it at some point in your startup journey.
Scaling up is a crucial stage in any small business. If you expand too slowly, you run the risk of missing out on vital opportunities. On the other hand, if you grow your company too quickly, you might create a slew of organizational issues that will be difficult to reverse. In fact, hasty and thoughtless scaling can even lead to business failure!
Sounds super scary, doesn’t it? But don’t worry! Because we have created the ultimate solution for your scaling worries.
And I am very excited to present to you:TheCodeWorks’s Zero Equity Startup Ecosystem! The first of its kind in India, our Startup Ecosystem is here to solve all your startup-related problems in a jiffy!
In the meantime, let me walk you through some of the top tips for scaling your startup. Are you ready? You better be!
How does scaling up differ from growth?
You were confused between these two terms, weren’t you? Let me solve that for you! See, if you want to expand your business, you basically have two choices: To grow or to scale.
And no, they do not mean the same thing.
Growing refers to the method of increasing your company’s profit through investments in human capital and technology. When your startup is growing, you are boosting the following:
- Market share, and
- Number of staff employed
As good as that sounds, your expenses will also increase at the same pace (if not faster). Make no mistake: growing sucks up a load of cash!
Now, coming to the next part,
Scaling is a process by which you can improve your startup’s revenue with minimal investment. Lucrative, right? Here are the major facts about scaling up your startup:
- Scaling generally focuses on automating processes in order to reach a wider audience base.
- When you’re scaling, your revenue grows much faster than your expenses. Thus, leaving you with cash and resources to fund and support the expanded business.
Fun and logical, see?
But there is a catch (of course). Scaling, if not done correctly, can be very unpredictable and risky for your business.
So, if you are a budding entrepreneur, talk to the industry experts (I am talking about us, of course) who have been working with the growth and expansion of startups for a while now.
Top Tips for scaling your startup
What’s your long-term goal here? To be an industry leader, right?
Well, let me tell you that this is possible only by making the right decisions- at the right time. I sound like a boomer right now, don’t I? But trust me. It is what it is.
So, here are a few things you should consider when you are planning to scale your startup.
1. Learn the fundamentals
Before you even consider scaling your startup, ensure that you have a firm grasp on the basics (we’ll talk more about them soon). According to a survey by StartupGenom, premature scaling accounts for 70% of startup failures. Do not make this mistake.
Before getting your “scale-up” gear on, ensure that your basics are good to go:
You can do this by taking in customer feedback and doing some market research. One of the best ways to do this is by building a minimum viable product (MVP).
Need a tech team to build an MVP for you? Here we go:
- Get to know your customers. Find out who uses your products/services the most
- Build a solid marketing strategy. Determine which marketing channels have the highest ROI and scaling prospects
- Check that you have the funds to scale. If necessary, seek additional funding. You’ll have to put profitability on hold while scaling, and you don’t want to run out of funds halfway through, do you?
2. Harness the powers of Technology
I cannot stress this enough! Growing a business in the 21st century is all about making the most out of technology.
This includes (but is definitely not limited to):
- Creating online storage and organization systems (like using specially designed software to keep track of inventory)
- Establishing marketing automation
- Arranging payroll for quick processing
The bottom line is: You must make technology your best friend.
Even if it takes a long time at first, these actions will pay off in the long run. You will gain access to data more quickly, get faster market entry, and streamline your operations for a scalable business model.
One of the best ways to achieve all that is by building an MVP!
Also, for the startups with an established online presence, do you use different tools for file sharing, meetings, messaging, and so on? Well, that is a thing of the past! You can now save both time and money by using fewer, multipurpose tools for all these tasks. Take MS Teams or Slack, for example!
Planning to make your online debut? TheCodeWork can help with that!
3. Focus on marketing
Think about it for a second: how can your startup scale if no one is aware of it? Brand visibility is key in this day and age.
So here’s a pro tip: Choose your marketing strategies wisely, and scalability will definitely follow. Not all forms of marketing are equally effective. For example, direct marketing and word-of-mouth marketing are difficult to scale.
In contrast, content marketing is one of the most effective scalable growth strategies. Content marketing has endless growth potential. Not surprisingly, it is one of the most preferred marketing methods for the majority of startups.
Also, hey! Make sure to keep an eye on your social media during your startup’s early stages. Remember, your business is very much in the public eye. Plus, is anything nowadays even legit unless it is on social media? So go ahead and create that LinkedIn profile right now!
Too much to follow up? Why don’t you let us help you out?
4. Outsource the non-essential tasks
For most large corporations, “in-house” is the name of the game. They have developers, graphic designers, SEOs, CPAs, and even lawyers working for them. Smells like the future!
But anyway, as a startup owner, you do not have this privilege (yet). So, if you want to grow, you must outsource all non-essential roles.
- Your graphic design company does not require a legal department.
- Your SEO consulting company does not need a full-time PowerPoint creator.
You simply need to concentrate on your strengths. How? Well, this lean approach will eventually allow your startup to make it big. When you have mastered your core strengths, you will be able to scale up.
5. Prioritize customer retention
When you’re just starting out, you should primarily focus on acquiring more customers, but when you’re scaling up, your emphasis should be on retention. You get my point, right?
Prioritizing customer retention will reduce your acquisition costs while also increasing profit. What’s more, retention fosters customer loyalty. Simple! And I am sure this is something you definitely want for your business.
In the long run, it will help you to develop a reliable revenue mechanism. Trust me!
Here’s a tiny example -
Imagine that you are a startup in the SaaS (software as a service) industry. In that case, you might want to consider improving your subscription renewal. This will help you to hold onto your customer base.
But, how can you improve your customer retention strategies?
Book a free consultation with our team of experts!
6. Build the right team
A business is only scalable if the right people are on board. I am sure you agree with me on this!
Here are some ways in which the right team members can help you in your scaling efforts:
- Your team members can give you brilliant ideas. And you know what they say: you cannot put a price tag on a great idea
- Choose team members who are proficient in more than one area. In a startup environment, one individual may be required to do multiple jobs
- Hire people who have a diverse skill set or who can transfer skills from one assignment to another
However, you must first hire only those individuals who are required for the operation. You may also outsource your requirements till you build the right team.
Talking of outsourcing, reach out to us for technical assistance at TheCodeWork.
Scaling up can be a tricky, risky, and even frightening process at times. However, sooner or later, your business is bound to go through this process.
The key to effective scaling is timing, that is, knowing when to expand your startup. You might want to consider scaling when your current processes begin to feel small. Or when your consumers expect that extra mile from you, or when you find new opportunities on the horizon.
Scaling is all about removing the old processes in order to find newer avenues for growth. And if you are unsure about where to start with your scaling journey, the TheCodeWork team is here to help!
Remember, scalability is also a mindset. Sure, you need the right people and procedures. But, in order to make it big, you must also think big.
Aim for the skies and we will have your back. Reach out to us for a free consultation now!
Originally published at https://thecodework.com on July 27, 2022.