4 Must-Do’s Before You Begin To Scale Up Your Startup.

So you’ve successfully set up your startup? What Now?

Well, it’s time to scale up. And scale-up fast.But make sure to lay down all the necessary groundwork to make the transition from startup to scale-up a seamless one.

Here are four ways in which you can prepare to scale up your startup.

Ensure Product-Market Fit.

If you don’t work on perfecting your product offering and recklessly move on to the scale-up stage, you carry these imperfections forward and doom your startup to failure. For example, the infamous ‘Google Glass’ was laughed out of the market and deemed a miserable failure as it not only lacked clarity in functionality, it was also a grave safety hazard, as it constantly emitted carcinogenic radiations so close to the head. 

If Google had placed emphasis on research and taken the time to understand the potential privacy concerns that would arise from allowing people to discreetly record their surroundings they could have saved themselves from failure and designed a product that actually created demand and was safe to use. Had they targeted a different segment of the market or designed it for industrial usage, it could have even been a successful undertaking.

What a startup can take away from this anecdote is that, while a big giant like Google can easily survive a total market failure, a newly established or an early-stage startup may not, as they lack the necessary resources and customer trust to bounce back and start from scratch again.

Go Out There And Secure That Investment.

This step is crucial as, without sufficient resources, all your efforts will come to an absolute standstill. Funding is everything, and you need to do everything in your power to acquire it. The last thing you need is to run out of money before a crucial growth obstacle. 

Before you even start thinking about scaling up, you need to start working on an effective investor pitch. While formulating your scale-up investment pitch remember that you’re not just trying to tell the investors why they should buy your product, you’re also trying to tell them why people will buy your product and the best way to do that is with numbers such as

•  CAC, LTV to help them  gauge the dedication of the customer base
• ARR, MRR, profit margin and customer retention rate to help them gauge current demand and future profitability

You need to keep in mind that at this stage of your startup growth, the investors will be on the lookout for actual proof that your startup has a dedicated customer base, coupled with sustainable demand and future profitability instead of just an idea, like in the seed stage.

Focus On The Big Picture

Check Yourself – If you find yourself engulfed by urgent tasks that need to be taken care of right away, instead of making important decisions regarding your startup’s future. You need to take a step back.

What most entrepreneurs fail to do is excuse themselves from the routine operations of the startup. By failing to delegate, entrepreneurs lose sight of the ultimate goal. Leadership suffers and the startup sinks without the direction of a captain who’s too busy cleaning the decks of the ship instead of navigating away from icebergs.

We advise you to let go of the reigns of routine operations, trust your team and focus on the big picture instead.

Surround Yourself With The Right Team.

into creating world-class products.

• A Growth Focused Creator

Every startup at the core needs to have creators who can build world-class products, by going to the farthest extent possible to uncover new technologies. They must also be capable of creating unique UX designs and finding those Aaha!! moments for the customers. 

• A Growth Oriented Data Analyst 

Data is one of the most defining aspects of your startup, the more you’re able to harness and control it, the better you can understand your customer base. Investing in a rock-solid data team will add immense value to your product.

If you’re struggling to find the right set of human resources for your team or to augment the initial core team of your startup, don’t worry, Magic Factory can help you find just the right talent. On Partnering with us, you will get access to quality and cost-effective offshore talent across

• Software Development
• UX Design
• Data Analytics
• Automation
• Experimentation
• Data Science

You, just go ahead and lock down your initial core members and we’ll do the rest, by ensuring that you have the best team of remote workers at your disposal.

With a promise to give your startup the competitive edge of a unicorn

Signing off,

Team Magic Factory