If you’re looking to scale startup companies, you need to remove the bad first. Here’s how to do it and thrive!
I know from personal experience that when a startup begins to take off, it can be tempting to try and keep everything going at once. But if you want your business to reach its full potential, you need to focus. And part of having focus means knowing what not to do.
For example, when my startup began gaining traction, one of the things we had trouble with was managing our customer support requests efficiently. We were getting more and more each day, but we didn’t have the manpower or resources yet to keep up with them all without sacrificing quality. So instead of trying to do everything at once, we decided to prioritize only the most important tasks and outsource the rest. It was a tough decision because it meant saying no to users who needed help, but it was essential to overcome this hurdle and move on.
A scale startup is a company that is growing rapidly in size and revenue. They are typically characterized by having a large market opportunity, a strong team of founders and employees, and a business model that allows them to scale quickly.
Scaling Up Your Startup Business
You might be thinking about whether it’s time to scale up. After a certain stage, startups gain all the perks of a full-fledged company.
One of those perks is the opportunity to expand and grow your business. Scaling can be a pivotal point for your business, and there is a proper time for doing it.
Trying to scale your business too quickly before you’ve even found your foothold in the industry could compromise your sustainability and leave you struggling.
If you wait too long to grow your business, you run the risk of missing out on lucrative opportunities that could help you expand and succeed.
Scaling your startup is incredibly important, and you don’t want to put it off too long.
You’ll have to take a very close look at your financial situation to see whether you can scale your business up. If scaling up is too time-consuming and cuts into your profits, then you might want to hold off until you’re in a more stable position.
Staying in startup mode for a little bit longer might be the wise move for your company, depending on your financial circumstances. A lean startup is always better than a failed business.
Here are four things to consider before deciding to scale your startup business.
1. Study Your Business Before Thinking of Scaling Up
Before you can scale up, you need to have a clear idea of who you are as a business. What are your main products and services? What are your unique selling points and what makes you stand out from your competitors? What areas do you still need to improve upon?
Before you can scale a business, you need to identify its strengths, weaknesses, and any opportunities.
Monitoring how your products and services are selling will give you an idea of which areas are performing well and which could use a little work.
Market research is essential to understanding consumer needs and trends.
This will tell you if you need to increase your sales efforts.
If your product’s market is not already saturated, what is the point in creating a product that exceeds its market demand?
You will only create a surplus of products, which will make it even harder to sell them later on.
You need to do some research on your target audience. Using information such as their buying habits and online behavior, you can better understand what marketing strategies you need to apply.
Once you have a good understanding of your target audience, you can start to tailor your product offerings to better meet their needs. This may involve making some changes to your marketing and sales strategies.
Intensive market research is the key to understanding which marketing and sales channels will be most effective for your products or services. By taking the time to understand your target market and what they want, you can create a sales strategy that will help you reach your business goals.
As you begin to think about scaling up your business, it’s important to take the time to master your sales channels. Knowing which channels are most viable for your products and services will help give direction to your expansion plans. This research will ensure that you’re able to reach your target market and continue providing great value for your customers.
What sets your start-up apart from others? Is it a good value for money?
Are you good at paying attention to details? Do you provide exceptional customer service?
Is it the outstanding customer experience you provide?
When you know what motivates your customers, you can better target your sales efforts to meet their needs. This, in turn, will help you scale your business in a way that is beneficial for both your customers and your bottom line.
Don’t forget to think about your goals as an organization.
When scaling your business, always keep in mind your long-term goals. Make sure that your growth only helps to enhance your brand, not hurt it.
2. Think Big, Think Long, and Think Smart
Only true innovators ever make changes that have a lasting impact on business, so don’t be afraid to aim high.
The sky’s the limit when it comes to your five-year plan. Cover all your bases while exploring new ways to expand your business.
But be strategic about it.
Understand where you are now to see how far you can grow and how quickly you can do it. This also means understanding your weaknesses and strengths, as well as your potential to scale.
Align your organizational goals and deadlines so you don’t rush and fall flat on your face.
This will help you plan for any risks that may come up as your business grows. By being proactive and planning ahead, you can avoid potential problems and keep your business running smoothly.
It’ll help you view the business world as a real-life game of chess, with competitors moving the pieces across the board. If you want to scale the business ladder, you’ll need to bring your A-game.
Always be two steps ahead of your competitors. Play the long game, not for the small victories.
You need to be able to take a step back when things are moving too fast and make level-headed decisions. If you let your emotions guide your choices, you will likely end up making poor decisions that you’ll regret later on. Always think about the long-term game instead of getting caught up in short-term gains.
3. Expect Accountability
Scaling means identifying your top performers and replicating their attitudes and behaviors throughout the organization.
The best way to do this is to make them feel like they’re responsible for the growth of your start-up.
People feel compelled to tell their colleagues when they’re screwing up or teach them in order to help them reach the same standards. There’s a sense of responsibility and ownership among employees in these types of organizations.
To scale a startup, it is important to expect accountability from employees. IDEO is one example of an organization that has done this effectively by creating a workplace culture committed to high standards and constant feedback loops.
4. Remove the Bad So the Good Can Thrive
It takes a lot of positive feedback to negate the effects of just one negative comment.
One study found that it takes at least five positive reviews to outweigh the effect of a single bad review. Furthermore, one bad employee can negatively impact the performance of the entire team by 30 to 40%.
All of this is evidence that to truly spread the good, you must first get rid of all the bad.
While most people agree that it’s important to fire quickly, it’s not always about getting rid of the 10% of employees that you won’t need. Sometimes it’s about cutting the deadweight of things that are not working.
When Cost Plus World Market was on the verge of going bankrupt, CEO, Barry Feld, made it his goal to get rid of all the negative aspects of the business.
After Feld found out that customers who are personally greeted when they enter the store buy more and stole less, Feld instituted a mandatory greeter policy across the entire chain.
He also made it a rule that the restrooms would always be clean and that he learned this from his time working in retail and that a dirty bathroom was usually a sign of other problems.
These two major factors led to the company’s recovery and ultimate acquisition by Bed, Bath, and Beyond.
Over at Twitter, Chris Fry banned cell phones during management meetings after he noticed that company leaders were voting on issues while staring at their phones.
Since they were not paying attention, he rounded up all of their phones in a basket — a tall order for Twitter employees. The result: they now have shorter but more productive meetings.
That is a perfect example of how removing something negative can allow the positive to flourish.
Startups give you the opportunity to spot these issues as they come up and stop them from becoming too ingrained in the company.
As a founder, your job is to identify and remove any roadblocks that could prevent pockets of excellence from spreading. By doing so, you can help ensure that your startup scales smartly.
When you visualize your business growing, you can scale smarter.
If you want your scale startup to thrive, you need to be willing to remove the bad. This means focusing on only the most important tasks and outsourcing the rest. It might also mean saying no if it is necessary to overcome hurdles and move on to bigger and better things. So don’t be afraid to make tough decisions – they could be exactly what your business needs to scale successfully.