The Journey From Starting Up To Scaling Up

The invisible point of commonality between all startups is exploring the route between growth and scaling up. Charting a triumphant journey of progress from a startup to a scale-up requires ceaseless networking, judicious application of digital advertising, and outsourcing. And statistically, the odds against a startup are rather intimidating. According to the Startup Genome report, 90% of all startups fail. Only 50% of startups survive the first 5 years and only 1 in 200 become actual scaleups. However, the ones who do manage to conquer the odds and persist have several traits in common. Companies that give due importance to talent, customer gratification, and fundamental principles are the ones most likely to succeed.

Before we delve further into the key proponents that help entrepreneurial ventures metamorphose from a startup to a scale-up, let us try and understand the distinction between them. Eric Ries, the author of the book Lean Startup, defines a startup as:

“A structure designed to create a new product or service under conditions of extreme uncertainty.” It is a company in the first stage of its operations, established by one or more entrepreneurs, serving a usually underserved market segment through unique and disruptive products.

A scale-up, on the other hand, is a startup that has progressed, grown in scale, and established its market credibility. The Organization for Economic Co-operation and Development (OECD) defines a scaleup as a company that has an average annualized return of at least 20% in the past 3 years, with at least 10 employees at the beginning of the period.

To decode the difference between the two in simple terms, a successful start-up evolves into a scale-up.? They are both essentially different stages of a business cycle. Once they begin scaling, the key for any startup is to maintain the momentum, adapt to the dynamic market needs and consistently deliver results to consumers.

However, the critical point of transition between the two is often not predictable or tangible. Hence it is imperative that entrepreneurs have a well-planned approach to facilitate the progress of their business.

How Can Startups Successfully Scale Up?

1. Commitment is the key

Consistency towers above everything. It is essential to be committed to the work you are doing since it ignites the passion for persevering action. Instead of focusing on the next big thing, focus on the small things you can do daily to reach your goal. Michael Angelo famously observed that, “Trifles make perfection, but perfection is not a trifle”. It is attention to the small details accompanied with the dedication to excel that sets apart a successful start-up from the plethora of others struggling to sustain.?

2. Improve leadership to build your team

A positive work culture and efficient division of responsibilities are crucial to ensure a conducive environment for growth. This leads to building a proper channel of communication and authority which is proven to encourage a good flow of creative ideas and feedback. A good leader needs to practice discipline, be adept at resolving conflicts, and empowering colleagues. Additionally, qualities like foreseeing the bigger picture, identifying opportunities, anticipating challenges, and potentially avoiding them, are what set great leaders apart.

3. Expand and leverage your connections

It's essential when you are starting to scale your venture to collaborate with as many stakeholders as possible. It helps you reach a larger audience and gives you much-needed exposure. The extended ways of collaboration are through influencer marketing which mostly follow the barter system, which can help in saving a lot of money for startups.?

4. Accentuate your Marketing

Depending on the nature of your business, figure out the marketing channels that drive the maximum amount of return on investment for you. For example - If you are into cosmetics product marketing, then depending on the nature, the ultimate consumers can be found on Instagram and LinkedIn, so the next step of forming a marketing strategy should be based on these channels. Marketing carries the power to give you access to your exact target audience, so a startup must leverage it judiciously.?

5. Hire the right people

Leaders are only as strong as their team. It's akin to a pyramid with the leader on top and the group acting as a pillar that makes it survive! The selection of the team must be made with utmost precision. Motivational speaker Simon Sinek famously said “Companies, like people, should never change who they are so others will like them. They should find those who like them for who they are.” The team members must believe in the company's vision and align their goals with the organizational objectives. This leads to a union that ensures that everybody is growing together.

6. Prioritize Customer Satisfaction

The success of every organization is directly tied to the demands, needs, and wants of the consumer. Ensuring consistency and quality along with providing?effective customer support is the pivot around which the longevity of a?business heavily rests.?

Attaining the status of a startup is an exciting phase for any business. However, this upward trajectory is peppered with challenges as well as potential opportunities, and needs a gamut of additional skill sets to propel the momentum that has been achieved. Scalability can be achieved and maintained with the right processes and people in place. In order to become a thriving scale-up, the possibility of potential growth needs to be translated into reality through judicious nurturing, mentoring, and strategic planning.