SCALE OR DIE (Part 1)

Working with startups chasing the scaleup opportunity can be exciting, but it is also a very hard chase of not just getting your sales to the next level, but the whole process reveals your weak points one after the other which you will have to address and correct. This is an ongoing process that feels like it will never stop and actually you get into the whole innovation circle by getting going like this.

When you found a company you have some idea of the concept, the business model, and might quickly get to a prototype trying to prove that the concept works (agile development, design thinking, get to your minimum viable product and various other names and processes but in essence failing fast, learning and moving on with the improved version) and that has some key importance as it shows whether the product actually can work and how. You have in various ways raised some initial funding to get this far.

Startups can have various lives and realities, whether it is something that stays in the “lab” as a proof-of-concept, able to do some exciting research projects and you might well be able to establish not only key know-how but actually patentable ideas.

But here my real curiosity starts: where does it take you in the next step – my sentiments with startup companies are to go for the commercial scale-up. A risky and big play, but ever so exciting to test out the business model for real. Get your stakeholders onboard - define your goals, stake out the strategy and go-to-market plan! Find customers who are willing to implement the products and services for something that can be disruptive and transformational. Innovation needs technology, market and people to make it happen. Starting on this high energy demanding process will take you on a fantastic ride with many surprises – the prototype might not (yet) be a complete product, or not work in that form with everyone. It might be that you discover some new use, added features, or actually that the market is different or changes while you are driving the early implementation and chasing clients.

A lot of decision making on the go in real-time required. Scale-up and product trialing might also lead to pivoting of your product or business model, or even both. I think that the client engagement is extremely important and also your own capabilities in your startup to understand and interpret the client needs, use and challenges into your own product. This gets you to the product that provides value at the user’s end. And always you are only as good as your last project. The proof-of-concept becomes more like proof-of-life for your business.

For startups aiming for the scaleup it also means that you have to SELL. You need to find the innovators in the market, who are willing to bet on an unproven horse in the race? You have to show and develop the value of your product in the customer setting. The early customers many times are willing to get a not fully ready product, but rely on the value it creates and the improvement points for the product are made up by the extensive customer services you are investing your time and efforts on. A lot of learning comes in this phase and helps pivoting and firming up the market readiness.

Selling is essential and this will further show on the functionality of the startup in the business ecosystem. When the sales volumes are picking up it will also help you to sort out bottlenecks, inefficiencies and other flaws in your present setup. A scaleup company needs to be dynamic and adaptive, ready to do hands-on maneuvering while you are accelerating.

All this while you also operate as lean as possible, so be sure to take out any inefficiencies whenever detected, it will otherwise haunt you and be a burden. I wouldn’t say that there is a set recipe, as every startup I have been involved in has had its’ own unique features and varying external influence parameters. But the fast and lean processes, with constant market and client feedback setting the course of the compass needle are central. As a piece of advice for the scale-up phase – ensure that you have the right team with you, a strong complimentary team will be worth a lot and one of the most important building blocks when you step in the scale-up shoes. Add the right tools, work processes and methods and you might get on the road building a successful business!

And remember to have fun and celebrate your successes on the way to possible glory!