Investors believe in startups which seem scalable which mean the business has a great potential and the startup turns into a cash cow for the investors to earn long term profit. Therefore, it becomes very crucial for the owner of the startup company to take some crucial decisions so that the startup explores its full potential and that startup starts climbing the ladders of success. The free cash flow should be taken into consideration while thinking of scaling up. With limited resources, it is very much necessary to know how to accelerate growth which will help in creating competitive sustainable advantage.
How to Scale Your Startup, Tips to consider
To write a success story for one’s startup, here are a few startup tips one need to take care of which will help in achieving one’s goal:
Create Milestones for the startup
One must think hard about one’s business and decide on creating milestones which are realistic in nature.One must also analyze the capital requirement for achieving these milestones. The next step is to gain support in terms of capital from the investors or if you are bootstrapping then bring down your cash burn rates. The most important step is once the milestones are set; one should adhere to them firmly. Communicate these milestones to your team so that they know which path to follow and what to achieve.
Hire only as needed:
Hire the right people who fit to the organization requirement and who have the dedication to take one’s business to a great success.
Build a strong team to help one achieve one’s goals. Inculcate a sense of strong vision and adherence to values in them which will help them share the vision and goal of the organization.Motivate the team to achieve the goals and vision of the company by adhering to the values laid down for your organization.
Hire employees as much as required by the business. As by adding more and more employees, it will add up to the huge payroll of the company. Also with the increase in the staff and labor, it will complicate the task of managing and coordinating with them.It will create additional hierarchies in the company.
Automate the routine tasks:
A labor and staff intensive startup becomes difficult to manage with time. To increase the efficiency of one’s startup,identify the routine and common tasks in one’s business processes and automate them. Document these tasks and make training videos to enable the new staff to come and pick up these tasks quickly.
Automation also helps in achieving and serving large number of customers which is beneficial for any business and this in turn will trigger the growth of the startup.
Improvement and Optimization:
After the systems of your business are in place, the next step is to continuously look for improving and optimizing the systems or processes in the startup. Technology advances at the blink of the eye. Keeping oneself abreast with the latest innovations and technology advances which can be implemented in the startup becomes a task of great importance. The continuous improvement and optimization will help the startup to improve the business process and thus reducing time and increasing the efficiency of the startup.
THE GROWTH PROCESS
- Qualify the top users: who are they, what is exceptional about them, what makes them important.
- Identify where they go online, what draws their interest.
- Access supply channels, how to get them in that specific places?
- Automate existing process by innovation and thinking dynamically, and as a result scaling your business up.
Let’s see each process step by step:
- Extrapolative metrics for revenue possibility.
- Engaging users might not be the top indicator of income. Dependable constant subscribers are more precious than soaring usage, non paying user.
- First Party data. Use diverse kind of analytics.
- Third Party data. Append and drag in other information source about your users to recognize and meet their requirements.
- Follow cross-channel movement. If you’re sending out usual email ad, locate who opens the communication, what time and from where are they opening the email and use that to aim that market.
- Cohort scrutiny. Separate users into distinct groups that have a little in common in stipulations of the numbers you’re optimizing for.
- Psychographics (their occupation, interests, stuff you can recover from their Facebook profiles)
- Demographics (their category based on location or some other parameter)
- Find adjoining markets. Who else is promoting to these people? Plan on making a delivery deal or joint venture with them.
- What are users discussing about now? (E.g. follow their Twitter feed. What key words they use.)
- Where do they squander their time?
- Who’s selling to them? What other content or ads does your user see besides yours? Who is your competitor?
Traffic superiority is the whole thing. Low value and low priced traffic with small money power or no access to your products drool. High value and more classy traffic with high monetization potential or trouble-free access to your products rules.
- High monetization possibility. At the start, focus on ways to get a superior exchange rate. Example: Groupon scaled rapidly using extremely non targeted, ultra cheap traffic from transversely diverse sites, but differentiated by location in order to classify non targeted traffic.
- High share of voice. This is the % of the advertising communication out there that belongs to you. E.g. If I own 2 out of 20 ads on a page, my allocation of voice is 10%. Aspire for as high a split of voice so you can increase people’s notice.
- Small overlie with existing audiences. 5-10% of the traffic has a high switching possibility. You desire to find these users and aim them.
- Any one of your team member can be a growth hacker. Excel is a smart resource.
- Discover non-tech solution. Cheap outsourcing is a better way to solve problems.
- Shun building from scratch. Put your arrogance away for a bit and try to use other products or channel that may be more efficient to achieve your goals.
- Achieve anything by integrating external products and diversifying your product.