Monday, April 2, 2012

Scaling

Scaling a startup can be tricky, not enough growth can eat up capital quickly and too much growth can cannibalize a business. By focusing on technology and development or sales and marketing, companies can over establish themselves and then inevitably run through resources faster than they can be re-obtained. Resources being anything from relationships and partnerships to actual raw materials or capital. Some companies build a product and expect it to sell itself, others sell a concept and then expect to be able to build it, and neither of these focus on optimizing time and man power. Rather, companies should be focusing on internal operations. By providing services to customers, companies can establish brand loyalty over product loyalty and though building brand loyalty takes much more time, it results in much greater brand equity. Scaling a start up requires intense attention to internal operational efficiency.

Nate  

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