Startups are inherently risky. According to CB Insights’ research, 70% of tech startups fail about 20 months after their first revenue growth.
Let’s say you are a StartUp that has been around for a few years; you have a specific customer base and you have grown from a small team to hundreds of employees. This is where you need to ask yourself: “How do I know when I am ready to grow more?”
To find the answer to this question, question your business on the following 4 items.
In its simplest definition: having a good product that can satisfy a market. If your customers are responding quickly to your product innovations, your revenue is growing fast, and you can fulfill sales support as quickly as possible, you have passed this item.
Repeatable sales model
If the number of your customers is growing and you don’t need to customize your sales processes for each new customer, you have a repeatable sales model in place for different customers. This is an important criterion for the ScaleUp initiative.
According to “The ScaleUp Revolution” study by Insight Partners, many executives (64%) are looking for a partner to provide strategic resources for their business. If you have funding to support you in this way, you are on the right track.
Bigger team and internal restructuring
Remember, as your company grows, so will your team. You may need more people in the sales and marketing team and want to ensure that your strategy and business operations are better managed. If you have already started to build a structure to meet this need, you are almost ready!
By paying attention to these 4 points and adjusting your strategy and business processes according to these criteria, you can take firm steps towards becoming a ScaleUp startup.