Growing leaps and bounds, pulled and stretched by innovative and new age ideas the start-up culture has found home in the hearts of youth- tossing well thought careers to march on their passion impulse to build an empire of their own!
Even as the minions of the start-up land successfully establish their foundations, a greater challenge- that of magnifying the expanse of their operations mightily awaits them.
‘Scalability’ of the business
Despite the entrepreneur’s far reaching visions of scalability, more than often a compelling comprise on quality and the challenge to keep up the business’ revenues comes slithering as the end of brilliant ideas and entrepreneurial ventures.
From organizational structure and systems to people and mindsets, here’s the right recipe of rags to riches for your start-up striving to grow!
Getting the fundamentals right
You can’t build castles in the air! The adage that holds much relevance in business scenarios, elucidates the simple fact that just like empires built on weak pillars comes down in crumbles, businesses scaling on weak foundations see an early nightfall.
According to a survey of over 3200 startups by StartupGenom, about 74 per cent of startups fail as a dire consequence of premature scaling.
What is premature scaling?
Asking yourself these precise questions will help you to decide on the readiness of your startup to scale or expand-
- Is your core product line a “market fit”- does it satisfy the market it is trying to reach? Take ample feedbacks and do sufficient data analysis to improve the product’s market fit degree.
- Have you discovered the largest core users of your product? Before spreading the wings of your startup, determine your market. Ensure that your scalability has a scope of consumption.
- Have you determined the distribution channels for your products?
- Have you determined the approximate figures of the return on investment? Test the business’ scaling potential in small measures with small budgetary allocations.
- Do you have the sufficient resources to scale your business- from money to manpower?
Introduce greater efficiency in operations- automation and outsourcing
1) Automate the processes
Convenient for streamlining operations as well as for creating a reliable data bank, automate all the processes that you can.
From setting up cloud storage to setting up training processes for new recruits, setting up marketing automation, pay roll for quick processing and bill pay for automatic withdrawals, among others. Automation will form a crucial part of scalability- bringing down cost and rapidly increasing efficiency!
2) Outsource the non-essentials
Equipped with only a constrained affordability, the startups unlike the big players of the industry must keep their ‘in-house’ team concentrated and unelaborate, focusing on delivering the company’s core expertise and outsourcing the non-essential operations.
Just like a growing publication company does not need a law department to focus on. Hitting two crucial points at once, outsourcing will not only help the startup to focus on and strengthen the core competencies of the company, but will also bring down the costs of the company- hereby buckling up for the scale-up.
Social Media is the king marketing- and, it’s free
As much as marketing forms the heart of business, it forms the heart of scalability too. An expansion plan stands void if it’s not coupled with the convenience of appropriate marketing.
As the startups get ready to enter the big space, their marketing methods must evolve to appeal the mass and in the age of internet, this doesn’t always come with a lot of cost.
Leaving the grapevine marketing and door-to-door selling days behind, the new age content marketing holds two-folds potential to pro-actively reach out to the mass, along with a good chance of going viral and an exposure to the worldwide audience.
Thus, look out on the social media space for convenient, efficient and cost-effective marketing. Even as the costly PR agencies are flourishing today, a well-managed effective online campaign keeps no startup from making the most of the internet’s mammoth potential .
Hire the right people for the right ‘jobs’
As outsourcing the non-essentials must be a priority for the startup, your in-house team focusing on the core competencies must be relevant and handpicked.
Hire someone you need, and hire someone who is not rendered useless as you automate your processes. Thus, your employee must be able to do more than the technology and the artificial intelligence you apply.
Employ bright minds and mindful observers. Operating at the core of the company, employees are exposed to the intricacies of your business, dealing with loopholes and identifying the growth potentials. An employee can be a treasure of ideas if placed rightly.
Versatility! Employ dynamic personalities. Adaptable and versatile. A startup provides its employees with a multifaceted work environment, exposing one person to a variety of works thus employ people with multiple skills and talents.
The employees you hire and the processes you apply also determine how independent a business can be. As we emphasize on making the business scalable we move towards making your startup truly independent, growing on the ideas you conceived than solely on your efforts. A truly scalable startup stands tall with or without you, and the moment the startup outgrows you- deem it ready for the big journey of scaling up!