The decision to scale your company is probably proof that you are doing well and you are able and ready to face new opportunities and challenges.
However, before you take the plunge into a new direction, you have to look at your current level of maturity and the relevant capabilities your startup company possess, whether tangible like budgets and technology stack or intangible like people and skills.
The strategies worth considering in your company scaling process are as follows:
Boosting existing Product Sales
This is the fail-safe and the easiest way to grow your company. The risks are relatively low and you may only need a bigger location, an altered pricing strategy or a better marketing modus operandi. On the bright side of things, you are dealing with your existing customer segment, the one who is already familiar with your products or services, so you will know if you take the wrong turn during the implementation phase.
Setting up a complementary Product Line
Assuming that you have at least one successful, best-selling product or service that has been around for some time and that you and your team has been collecting data and evaluating customer feedback and reviews, you may start developing a new pipeline of even more successful products or services. This is not only a typical expansion tactic but a very normal way of progressions since products easily evolve into product portfolios together with their customer’s share of wallet.
Investing into a New Location or a Market Segment
This strategy requires extensive research, beta testing and weatherproof marketing strategies, especially if you are shifting your customer focus in different age groups or in different parts of the world. Distance between physical locations usually creates management issues and increases complexity but can be addressed with the selection of the most business friendly country or the one with soft landing facilities available that make things easier to execute and achieve expansion via this strategy.
A merger or an acquisition is as a viable expansion strategy, assuming that you manage to find the right partner, fit, since it combines the better of the two companies involved. Not only does it increase the customer base fast, but it also expands the combined entity intellectual capital and operational effectiveness. However, you must know beforehand that corporate partners expect a short-term and recurring quarterly performance.
Growing is a logical step when your company reaches a certain point in its development cycle, and of course there are many roads to scaling, and as long as it fits your business model you can pick and choose which is the right one.
Want to learn more on how-to-do, drop us an email and we will be happy to share our knowledge and insights with you!
Christos Lytras – Managing Partner