Growing a startup is similar to gardening; it’s not enough to purchase and plant a seedling, you have to constantly feed it, trim it and make sure it is thriving.
When starting a business, it is difficult enough to get the idea off the ground, but doing so is not a sign of success yet.
A new company needs constant attention and effort to grow it in order to be profitable and successful.
Doing so is not easy, and requires skills and knowledge in various industries.
In this article, we will share some real tips on how to scale your startup.
One of the most common mistakes that founders and CEOs of startups make is not planning ahead.
For example, if they want to sell tea, they may project how much money it will take to create the packaging and order the first batch; however, they rarely think about the future.
If the first sells, how will they come up with funds to order the second batch?
How will they approach vendors to convince them to carry the tea in their stores?
Will the stores offer up shelf space that is already dedicated to selling tea from other brands?
Where will the production of teas be made, and would it be cheaper to manufacture them overseas?
If so, what would be the logistics involved in shipping them to the UK?
All of these are vital questions that require carefully thought-out answers.
Many startups fail before the second round of funding because they didn’t project the associated costs correctly.
The skills and knowledge of those employed by the startup are crucial to its survival.
It can be enticing to want to ask your spouse, friend or colleague to go into business with you because you’ve been talking nonstop about your dream, and they have contributed ideas.
However, it is important to truly evaluate whether those individuals would be the best fit for your business.
Do they have the business acumen required to lift the business off the ground?
What if you have a disagreement about the best course for the startup, who will get the deciding vote?
You also want to focus on how you treat your regular employees.
For example, you may hire someone to help you get the business off and running, but once you become somewhat successful. you may consider hiring someone with more experience for a senior role.
Doing so may not always be the best move because the other party has been with you from the start and truly knows your business inside and out.
If you don’t promote this employee, he may choose to leave the organisation altogether.
Therefore, it is important to consider who you hire, and how you reward each and every team member along the way.
A startup is never easy to scale, it requires careful planning, backup scenarios, the right people and enough fundraising.
Follow these two steps to grow your business the smart way.
Head of Training and Development