For consolidated entrepreneurs, converting their startup into a scaleup is one of the inevitable headaches they will have to suffer. The change of mentality is not a transition that is easy, because developing a product is a completely different task to sell and grow a company; taking the business to the next level becomes the task of titans.
For a company to be considered a scale-up it needs to have an average annual return of more than 20% during the last three years and have at least 10 employees, according to the Organization for Economic Cooperation and Development (OECD).
In this regard, we share three proven tips that will help you better process the change from startup to scaleup, so you can get the most out of your business:
1. To grow, it is necessary to change paradigms
Many start-ups with aspirations to become scale-ups fail because they are not able to understand that the take-off stage ended and that it is now necessary to start thinking about how to move on to the next stage. However, if business owners manage to identify the new needs of their growing business, then it will be easier to find the way.
Imagine that you have a company that wants to sell a digital payment system for merchants. During the first phase you will need to focus on developing a solid system, so you will need programmers and specialists in finance, but once you are ready, your most pressing need will now be a field sales force to offer your product. So your role as a manager will be to operate a company, not a development company, but one that sells a technology for a specific niche.
“The change of stage implies an unfolding of the company to a completely different reality where perhaps many businesses get stuck because they do not have the skills to implement that new business.”
2. Identify the changes you need
As startups move into the growth stage, they need to standardize their business processes so that great experiences can be reproduced consistently. This is only achieved by incorporating experience in the processes and structures that keep the company afloat.
“A major problem is getting the talent that is required for each function, but the main problem is before that, when they do not realize what they need.”
3. Do not be afraid to incorporate talent
Having a good idea is just the beginning of a business, because the real challenge to climb is to be able to effectively implement it, without forgetting that the skills required for both processes are completely different, so you may even like manager your skills are short.
“That’s where entrepreneurs start to stumble a lot because, in the first place, they are afraid of incorporating talent and adding skills to the team, they are very focused on the paradigm they come from.”
If an entrepreneur stays focused on what works and leaves aside what does not work, if he continuously innovates and polishes his processes, then his startup will scale to become a scale-up, creating more jobs, generating more income and making an impact more positive with your clients and with the target audience.