Scaling start-ups

Scaling a start-up requires careful preparation and a timely launch.

  • Scaling is exponential growth, where your revenue grows faster than you spend. The net income is often reinvested to further the growth of the company.
  • Growth is often a linear term. The start-up revenue increases as more resources are added, such as capital, people and technology.

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The Seven Deadly Sins of a Growth Marketing Strategist

europeanbusinessreview.com

A start-up often fails because of premature or late scaling. 90% of start-ups fail: 10% fail in the first year and 70% in the following 2 - 5 years.

The following questions can help assess if your start-up is ready for scaling.

  • Are the sales figures growing?
  • Do all the founders have a shared vision about future development and growth?
  • Is cash flow positive?

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A common mistake for start-ups is to fail to consistently gather and analyze key indicators.

Marketing approaches that secure start-up growth is brand marketing, performance marketing, and product marketing. Each approach is connected to a specific stage of the sales funnel: awareness, acquisition, activation, revenue, retention, referral. If you move from one task to the next, you may waste time, opportunities, and investment. So instead, focus on one or two tasks from the list.

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Vanity metrics reflect how well you grow your social media followers, get more website visits, and gain trial users, but they fail to meet your business goals.

Sometimes start-ups choose too many metrics. Despite their progressive increase, they don't contribute to business growth or help to attain business goals. The issue is that the start-up does not have a relevant metrics base. You should choose two or three relevant metrics and set a deadline for them.

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Understanding your client's real needs are essential for a long-lasting relationship. 

To help get to know your clients, consider the following questions:

  • What problems do our clients need to solve?
  • Why should they choose us?
  • How can we be useful to them in the long term?

It is sufficient to identify the needs of your best users. They are loyal and independently promote your product. 

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Marketing strategies are pointless if a product is not validated and the audience does not see its value.

Marketing is used to highlight your product's advantages.

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Long-term success is achieved through a clear marketing strategy, not by the individual aspects - customer knowledge, brand awareness, product validity, etc.

The main goal of a start-up is growth. Therefore, understanding the start-up market can help find the right marketing tools to influence the audience.

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The journey of a startup is often bumpy. A startup can fail when there is a lack of patience and respect for you and your team. 

Be patient, respect the ideals and be grateful for the continued experience.

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