Launching a new startup is an exciting and challenging process, but it’s just the beginning of a business owner’s journey. Once the launch is successful and money starts flowing in, owners often think that the tough part is over and growth will easily follow. However, statistics tell a different story. A recent study by Startup Genome found that 74% of Internet startups failed due to scaling prematurely.
Most startups are interested in growing as quickly as possible to capitalize on their respective markets. If done incorrectly, though, rapid growth that is not well-planned can lead to disaster. Growth hacking experts agree that the key is to focus on processes that will help you scale quickly, yet effectively. Here are five important process-based tips that can help you quickly and efficiently scale your startup.
Confront Complexity Early
When you grow your startup, simple systems can easily evolve into complex mazes that quickly get out of hand. Adding new employees or vendors with different working styles and processes leads to system conflicts and extra steps if the processes are not consolidated and streamlined. Keep an eye on working practices and make a point to remove unnecessary steps whenever possible. You should also make sure everyone is on board with using one main form of communication whether it’s using email, weekly conference calls, or team management software like Basecamp.
Focus on Infrastructure
Startup growth strategies should always include a plan for developing an infrastructure that can scale with you. Without the proper foundation in place, your business will be on shaky ground and quick growth can easily cause it all to crash. Make infrastructure decisions before growth occurs, not afterward. Determine what the right IT investments are for your company’s growth needs and budget. Then, select the right vendors, and discern what other key areas will help you to continue providing high-quality service as you grow. If you choose to invest in a cloud-based platform for your IT needs, for example, make sure you concentrate on the tools that can grow with you instead of those that will need to be continually upgraded. A good example of a scalable cloud-based platform is Amazon Web Services.
Specialize and Delegate
Keeping too tight of control over your company will cause major problems as you scale. Growth hacking tips for startups always include the ‘d’ word: delegate. Before you start handing off tasks, though, make sure you have specialists in place who can take on the jobs that fall under their strengths umbrella. Delegating tasks to anyone who has time to take them on can result in a decrease in quality.
Consider Outsourcing Non-Essentials
Outsourcing can be an effective way of freeing-up your internal staff, but make sure it doesn’t get out of control. New business consultants advise outsourcing only those non-essentials that are not a core part of your business. For example, an app development startup can consider outsourcing payroll, but should keep coding and framework in-house.
Find Expert Mentors
Working with a startup expert can help you avoid many of the pitfalls involved in scaling your business. The above tips will help you get started, but when you find the right mentor who has experience in your industry and a track record of successfully scaling businesses, your startup gains years of knowledge that you’d otherwise have to learn the hard way. Mentors are one of the most valuable resources for startup owners and they can be the key to your future success.
Need help scaling your startup the right way? Visit our website for more startup business resources and mentors who can guide you on your startup journey.