Many startup companies face a catch-22 scenario as they are looking to scale up their operation.
Growth strategies often require a significant investment in overhead, which is risky for a business still in its infancy.
The challenge is to find ways to increase your customer base and revenue whilst keeping new costs to a minimum.
Following are several effective strategies for upscaling your startup company while minimising your investment in overhead.
Grow Your Startup Systems
As you look to expand your business into new markets, locations or formats, it is common that you have to implement systems for each core business function to match.
On the surface, this may sound like you have to match investments you made in your startup in areas like accounting, information technology and marketing.
One way to mitigate these expansion investments is to apply repeatable processes or activities or to automate certain steps.
Part of the cost of establishing a startup is the manual time it takes to get new systems in place.
By modelling what you’ve already done to achieve operational efficiencies, you can avoid the need to repeat the entire timeline again.
Connect People Through Technology
Expansion doesn’t mean you have to replicate the same footprint that you made initially in building space, equipment and people.
Ideally, you can find ways to streamline operations through technology, allowing your team to accomplish more as the business scales.
Having a central accounting team or marketing team, for instance, allows you to avoid investing in full staffs of people in every functional area for each new location.
Alternatively, you could have smaller teams at new locations that communicate through technology systems with a central hub to manage activities across the entire organization.
Outsource New Business Development
One of the most practical ways to expand without overspending is to outsource new business development.
With this strategy, you pay for the services of a partner that leverages expertise in helping you tap into new markets.
This approach allows you to save on overhead, as you don’t have to invest in additional full-time team members who then have to take time developing and implementing a growth plan.
A business partner with expertise in helping clients move into new markets, like Internal Results, can help you scale up more efficiently because they have established processes and contacts.
There are always risks when a startup reaches a point where scaling up becomes the next logical business move.
You don’t have to venture out on your own.
Outsourcing your new business development allows you to leverage the experience of a company that has a proven model for helping clients expand and grow revenue while minimising costs.
Are you ready to learn more? Contact us now to discuss your upscaling plans.