If you’ve recently launched your startup, you’re probably wondering what steps you’ll have to take in order to keep it afloat.
When investors become interested in your startup, they’re not just looking at your product; they take into account your team, business plan, and goals for the future. This is why scalability is a very important characteristic for early startups to have.
Unfortunately, research shows 70 percent of startups struggle with scalability. Not sure what scalability means? It’s a startup’s ability to increase its revenue while keeping costs low. To achieve this, a startup must be able to reduce the time involved when solving tasks and minimize the impact of higher volumes of business on your contribution margin.
As you continue to plan for the future of your startup, it’s essential to focus on scalability. Here are five tips to help you keep your startup afloat:
1. Set a clear vision
If you want to create a sustainable business, you have to have a clear vision for the future of your startup. Think about the different ways your product or service will be relevant over the next five years and determine how you’ll continue to serve your customers.
Without a clear vision for your startup, you won’t be able to adjust to new trends or technologies. In addition, your startup can’t be scalable without a vision at the forefront of your business.
2. Develop a strong business plan
Research shows that 46 percent of small businesses fail as a result of poor planning. If you want your startup to stay afloat, then you need to develop a strong business plan that outlines the goals and objectives for your startup.
As you develop your business plan, think of a model that will be attractive to future investors. Do you want to viewed as a scalable startup? Do you want to reach a large portion of your market share? Do you have any goals for creating revenue and cutting costs? These are all elements startup founders must consider when creating their business plan.
3. Be willing to redesign at any time
Startups that are willing to redesign raise 250 percent more funding than startups that don’t. The reality is, your startup needs to create an idea that’s scalable and can be transformed over time. Investors don’t want to invest in a product or service that will be obsolete in the next year. Investors want to invest their money into a startup that will be ahead of industry trends and be a startup that’s focused on innovation.
4. Put your customers first
Although startups have a number of things to worry about when launching, your customers should be a top priority. Don’t neglect your customer service strategy and be sure to market your product in a way that relates to your target audience.
It’s also important to have open and transparent communication with your customers. Research shows 71 percent of customers expect a response from customer service within five minutes. As a startup, it’s important to be available to your customers at any time and let them know that their needs are your priority.
By putting your customers first, they’ll set the sails for your startup and keep your business afloat. Your customers will feel valued by your business and will eventually turn into loyal brand advocates who will spread the word about your business.
5. Continuously improve your business
Just because you’ve launched your startup doesn’t mean it’s smooth sailing just yet. There are a number of factors outside of your control, such as the economy and customer demands, that will contribute to the success of your startup. If your startup isn’t flexible enough to respond to new trends and market demands, you could quickly sink.
As you create your business plan, be sure to include some wiggle room for future trends and advancements in your industry. Create a strategy that focuses on continuous innovation and makes an effort to plan ahead for the future. This will help you continuously improve as a business.
By following these tips, you’ll maintain a scalable startup and be prepared for any changes your business will need to adapt to. As long as you focus on your startup’s vision and create a business plan, you’ll be able to keep your startup afloat for years to come.
What tips do you have for creating a scalable startup?