5 ideas for scaling your begin
When you’ve met your previous business goals, have the right people, and have strong cash flow from repeatable sales, you can scale your business.
From VITALY KUPRENKO
Let’s see how it works.
# 1. Start with the basics and scale up later
Make sure you know who your ideal customer is and what problems you are solving for them. Who exactly do you want to work with?
Suppose you have a startup that aims to help non-tech founders build a mobile app for their business. In this case, focus on people who already know what they want to build.
Don’t spend most of your time explaining to non-tech people who have no idea what apps they need and if they even need them.
By focusing on the right audience, you can help your startup grow faster. You begin to better understand customer needs, develop more focused products, and tailor the product to the needs of your audience.
Finally, make sure you have enough resources – money, people, time – to start scaling your startup.
# 2. Do your best, outsource the rest
Having a large in-house team is common in large companies. For example, if they are a full cycle software development company, they will need everyone to support the product from planning to release.
Business analysts, UI / UX designers, QA safety engineers, Android, iOS, web developers, DevOps, and PMs – they’re not even all of the people involved in creating a single mobile app.
All of these people want a competitive salary, a comfortable office, software / hardware to work on your product, and so on. In return, you bear a lot of costs, which you can optimize through outsourcing.
For a small startup, there is no need to hire internal staff for everything. You can choose between in-house and outsourced software development and hire a few employees or teams to work on your product.
For example, you might want to move your website from Angular to React. What’s the point of hiring a few full-time React developers and UI / UX designers when you only have to do the job once?
By outsourcing you save costs and don’t have to concentrate on anything other than your product.
# 3. Choose your marketing channel
There is no point building a product for users if users never know about it. Before you start scaling, think about how you can let more people know about your startup.
In fact, there are quite a few marketing channels: content marketing, SMM, direct marketing, influential marketing, and so on.
The truth is that almost all successful startups get the most users from just one marketing channel. If you focus on a few channels at once – especially if you’re a startup with minimal resources – you risk too much valuable time figuring out which channel to leave and which to focus on.
# 4. Measure your success
Attracting customers with no clear goals is nothing more than a random activity.
So define your metrics and keep checking them.
Here are some financial KPIs you may need to review:
– – Monthly recurring income (MRR) or annual recurring income (ARR) – how much your product earns over time;
– – Customer acquisition costs (CAC) describes how much money you spend to get each new customer
– – A customer’s lifetime value (LTV) shows the profit you make with a customer over the entire period
Regarding user interaction, here are some things to keep in mind:
– Daily active users
– Number of user sessions and lengths
– Customer Churn (shows the number of users who have left your product)
You always have a few metrics in mind, and it can be a good idea to pick a few KPIs to track each day.
# 5. Invest in technology
The startup cannot scale when it is labor intensive. Technologies are changing that, making it easier to achieve more scalability with less work.
Today’s businesses don’t use software for everyone. They run on multiple products depending on what your business needs.
The most common are:
– – CRM to store data about your customers. You can use the information to answer customer questions faster, improve marketing strategy and analyze common buying patterns. example: Salesforce, HubSpot, Sugar CRM and Zoho CRM.
– – Accounting software Generate timely and accurate reports and make financial decisions. example: Zoho Books, FreshBooks
– – HRM systems to manage people and automate manual tasks. example: Zoho People, Freshteam.
– – Digital marketing tools Create marketing campaigns and measure their effectiveness.
The software allows you to automate various internal and external processes.
For example, you can start automating customer onboarding to pick up users right after they register on your website. When a customer signs up for your product, you send them a welcome email with further instructions.
That doesn’t mean, of course, that you fire your employees.
By automating processes, you reduce costs, minimize manual work and assign team members to more important and creative tasks. Not only will you reduce the risk of human error, but you will also save a lot of time.
Today is a great time to start your own software company. Maybe the best time to do it.
However, growing your business is usually much more difficult than starting it. However, when you start a business that really makes a difference and solves your customers’ problems, you can find and scale your audience.
There are many modern ways to make investments these days, such as popular AngelList and crowdfunding.
Vitaly Kuprenko is a technical writer at Cleveroad, a web and mobile application development company in Ukraine. He likes to talk about technical innovations and digital ways to boost companies.