Underlying any transformation often requires a change in strategy. To grow from a start-up to a scale-up, it is necessary not only to have a scalable business model, but also to have the strategic vision and to be able to find the resources to do so.
A scale up is normally defined as a scale up when its growth reaches +20% per year over a period of three years. Obviously, achieving this level of success is by no means easy. Verne Harnish, one of the world's leading experts on scaling up - named by Fortune as one of the 10 brightest minds in the world of small business - has identified 7 key steps to achieve this.
Let's see what they are.
1 - Absolute commitment to growth
The first step is to really want to make your mark in the industry in which you operate. An innovative vision and absolute dedication to the will to grow are the fundamental prerequisites for all subsequent steps. At the same time, however, growth objectives must be realistic and based on concrete, achievable plans and actions.
2 - Developing leadership skills
It takes more than a founder to build a successful company, not least because the transition to scaling up requires a broad and integrated set of competencies and skills. Leadership is measured by the ability to motivate and drive one's team towards the goals to be achieved. Being able to build a team with broad and transversal skills is therefore of paramount importance for a successful leader. Reading widely, studying, joining strategic groups and learning from mentors are good strategies to work on developing leadership skills.
3 - Hire the right people
Any organisation can only grow with the right people on board. Especially in the early stages it is important to understand what core skills you need to have in your team and what skills you can outsource. Creating a team with a set of transversal skills or capabilities that can be transferred to different tasks is a good strategy to remain flexible and agile in the face of rapid change.
4 - Partnerships and collaborations
Growth doesn't have to be limited to the boundaries of the company. External partnerships and collaborations are great ways to foster creative flows and access to soft skills. Building a strong network of relationships with sales partners, suppliers, customers and stakeholders creates the right environment to develop an innovative project.
5 - The importance of processes and automation
Standardised and repeatable processes save time and resources. You may need to invest in IT or training at first, but these efforts pay off in the long run with faster access to data, more effective delegation and streamlined administration - all of which are key to a truly scalable business model.
6 - Invest in marketing
Getting the word out is crucial. It is impossible to scale a project if few people know about it. Marketing investments, therefore, are crucial even if it is not always easy to measure the ROI directly.
7 - Turn on autopilot
For a company to become truly scalable, it should be able to function without the founder. To do this, it is necessary to learn to delegate responsibilities from the start, understanding which strategic areas need attention and which can be proceduralised and standardised. Only when these fundamental steps have been implemented and the company is in a position to grow even without the constant attention of the founder, can you really expect to push for exponential double-digit annual growth.
Source: https://blog.growthinstitute.com