Startup Scaling up Challenges

What types of Startup Scaling up Challenges are faced ?

It is a natural phenomenon that any growth throws up challenges. Startup is no exception. The startup in the initial stages  faces different challenges like hiring the right skill sets. acquiring customers and establishing a brand. Growing refers to acquiring more customers. If the market is growing for the segment acquiring market share may be less difficult. When growth rates are modest the competition reacts and upsets a startup's apple cart.The established players might reduce prices and  may have higher resources for marketing.

Startup Scaling up Challenges - Factors

The challenges can be within or from external environment. It may be easier to handle internal challenges but external environment  may be difficult.

The first challenge could be lack a team as the initial phase was managed by a solopreneur or a  team of 2-3 startup team members.Growing is resource intensive and vitamin 'M' is in short supply.

A year in the life of a startup may appear too long and in the mean time  new products/ services have hit the market with better futures or lower price points.

Sometimes governments might have brought in new legislation requiring compliance and compliance costs  money.

Startup Scaling up Challenges- Dilemmas

Different companies experience different challenges while they scale.

Scaling a company isn’t an easy thing to do, as the many changes needed can derail even previously successful businesses.
The typical dilemma is how fast/ quickly one should scale up? If you are venture funded there is tremendous pressure to grow and one may buckle under it.

The strategy and skill set required to scale up is different. Does the founding team has capabilities?

Does the team constantly scan the environment. Are the issues faced in the first phae is so  overwhelming it is difficult to climb the growth mountain?

Startup Challenges- Gyan from Fairbairn - Founder-POD POINT

 “Each time your business doubles everything seems to break; your sales process, finance processes, management information flow, so every time your company doubles in size, you end up re-designing every process you have."

 Useful weblink

7 Scaling Challenges That Can Sink Even Successful Companies


Recommended Book

The Startup Checklist: 25 Steps to a Scalable, High-Growth Business - David S.Rose

This book is designed for a very specific type of business starter: the entrepreneur who is deliberately setting out to create a scalable, high–growth business designed for the twenty–first century; a business that will hire employees, issue stock options, raise money from outside investors, grow rapidly, and eventually either be acquired by a larger company or "go public" through an initial public offering. Starting that kind of business gets very complicated, very quickly, and making even small mistakes at the beginning can cause problems at every later step along the way.

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Startup Scaling up Challenges- Conclusion

Scaling a business is an important part of growth, but it’s easy to make mistakes.

  1. Build Management bandwidth.
  2. Perfect the product/ Service
  3. Rapid Growth/ Moderate Growth decision is key
  4. Assess key risks at growth stage.
  5. Mobilizing capital for expansion
  6.  Have operating Team to run existing business and growth focus should be by the entrepreneurs team
  7. Believe in delegation
  8. Problems do not disappear of their own.
  9. Keep flab at bay and use technology/ Improve Processes

Avoiding the above  pitfalls will help the business scale successfully, bringing  the increased profits, growth and longevity one desires.