You’ve gone through all of the painstaking steps to start your business and now you have to deal with the hard part – managing it. Startups are incredibly fragile due to the lack of a large customer base and lack of financial cushioning should there be any issues with mismanagement. Many issues can plague a young company, but the most common is not scaling properly to fit their market and demand. In fact, 70 percent of startups struggle with scalability, whether it’s scaling too fast or too slow.
What is scalability? Basically, it’s a startup’s ability to increase its revenue without increasing its costs. Not all startups will scale immediately in the beginning, but it is important to focus on this as you plan for your startup’s future. After all, if you don’t have the ability to take on new customers or meet the expectations of your current audience your business will likely falter. There are many important factors to consider but there are a few key things you can do to ensure the success of your startup:
1. Have a vision – All sustainable businesses have one thing in common – they have a clear vision for their future. Look five or ten years down the line and think about different ways your product or service will be relevant.
2. Develop a plan – A strong business plan should outline all of the goals and objectives for your startup. The plan should show potential investors how you will realize your vision.
3. Redesign when necessary – Creating a scalable business means that you need to be able to transform your business over time in order to gain more customers. Look at ways you can expand your product or service or see ways that you can penetrate other markets.
4. Focus on customer service – Your customers are the lifeline of your business and should be your top priority. Your customers will feel valued and turn into your brand advocates.
If you want more information, the infographic below goes into more detail on how scaling affects business, some ways to scale and insight into your competitors.
__________________________________________________________
Ivan Serrano is an internet journalist living in Northern California. While he mainly writes about social media, small business and digital marketing, he’s been known to often write about technology and finance as well. When he’s not inking another self-proclaimed masterpiece, Ivan likes to practice his photography or watch his favorite sports teams with his friends.
