If you want to get a startup rolling, what is the one thing that will make your investors interested? Is it a good idea or a strong business plan? Maybe it is the way you present your findings or just the team you have behind you? When it comes to investing – there are many things that can make people interested in supporting you. However, one of the priorities – and the things that they love to see – is how scalable your startup is.
First-timers might not know what this is – you might have not even heard about the term. Of course, you will want to create a scalable business – but how can you do so when you’re only starting in entrepreneurship? Well, basically, startup scalability is the ability to multiply revenue with only small incremental costs. In simpler terms, it is the way to make a business more sustainable – to be able to pay itself off. Accomplishing this might not be easy – but there are some things you can do at the very start to set up your business toward sustainable growth.
Back up your idea with thorough research
When starting a business, you will hear that a good idea can be quite a dealbreaker. Sometimes, this is true. There are investors who will absolutely support an idea that sounds amazing even if you did not properly prepare to present it. However, more often than not, the investors are looking at their bottom line. By investing, they hope to earn money from you. And so, they will want to support an idea that will make this possible.
This is why it is imperative that you do thorough research before you are ready to present your idea to the investors. You will want to have a lot of data that can back up your idea, no matter how amazing (or not) it is! With good market research, even an average idea has more possibilities to succeed than an amazing idea with no backup! So, make sure that you sit down and look at the state of the market. Think about what people need.
It’s important to look at the future if you want startup scalability. Think about how the need you have discovered in the market will change and how the businesses will adapt to it. Have a clear vision for the future, learn how to properly present it, and you will find investors who will support you with ease!
A good business plan will help you with presenting your idea
One of the key components of every startup presentation is a good business plan. This is also one of the first things the investors will want to look into and explore with you. If you are unfamiliar with what a business plan is, it pays to take note of how to create one. Simply put, it is a plan, sometimes even just a single page one, of how you will conduct your business. Here, you will put how you want your business to grow and develop in the future. It is a great opportunity to show your investors how you will set it up toward sustainable growth.
However, an important thing you want to remember is that the business plan is not only for the investors, but for you as well. Inside, you will want to display the goals and objectives you have, as well as how you intend to reach them. Create a strong structure to show that your startup will be fail-proof, but make sure it is also flexible.
Flexibility, or the ability to adapt to the ever-changing market, is an essential part of every startup. This is why you will need to have a business plan that you can change when the need appears. Creating project portfolios can help you with this. With them, you will be able to structure your teams and projects in a way that’s easy to manage and productive, but also change it with ease. This makes a strong and flexible business plan that every investor will love.
Human resources are an essential part of every sustainable business
The second aspect of any startup scalability are human resources – or the people you have in your team. Who you employ will affect how your business grows – and its possibility for sustainable growth. Remember – your employees will have their own vision of the business. This is why it is imperative that you create a strong team around you.
The leading principle you need to have while finding people for your startup is that you need to work on your business, not in it. This means that you should hire people who can manage projects for you. Productivity in ppm project management is a huge scaling factor. By addressing it early you will be able to set up your business toward sustainable growth well.
Learn when and how to outsource to get the most out of your business
Another tricky part of setting up your business for success is how you outsource your resources. The ability to do this well can easily make or break the scalability of your startup. So, what should you keep in your startup – and what should you look for in other companies?
Well, an important thing to remember is never to outsource core competency. This is something that is yours – and you should use it! The same should apply to the intellectual property you own. If you do not own something, try not to rely on it too heavily.
However, it is obvious that you cannot do everything by yourself. For example, creating experts in your company can take a lot of time. It is a slow and expensive process, so it might not improve your startup scalability. This is a perfect example when you should use outside resources. The thing to remember here is that you need to pick and choose your battles. There is no right answer – so see what works for you and your projected growth.
Do not forget about the technology you can use to set up your business toward sustainable growth
This is an often-forgotten factor when setting up a business. Many entrepreneurs think about their business plan, the resources and people they will work with – but they don’t really think about the technology which they will use. This is unfortunate, since your software plays a big part in the sustainable growth of the business and can easily help your startup scale-up. To demonstrate this, just think about the technological innovations you have witnessed in recent years. The world is constantly changing and improving, and you simply need to stay on top of it to change with it.
And this is where a lot of problems occur. Business owners often use older software and equipment models, which only slows the project management down. So, when picking the technology, you will use in your startup – both software and hardware – focus on things that are easy to update and improve.
What’s important is to keep in mind that you will want technology that will help you with streamlining your business. This way, you will keep your productivity and output high, while using the least amount of resources. What’s more, you can use technology to engage with the customers and create a huge base with a few simple clicks. Finally, use it to examine data and overview the whole business process. Doing this, you can examine just how well you are scaling and what you can improve in order to push your business toward sustainable growth.
Automatization can lead to extra productivity
Finally, another great perk of using technology is to automatize parts of your project management. This is simple math – you will scale better the less you are dependent on labor or staff. So, in order to get a self-sufficient business, you will want to look into the minimum staff approach as well as the technology that can help you with this.
Also, make sure you are documenting everything as your business develops – whether you are using new and helpful software or allocating resources to different parts of the company. This way, you will create online trainings for your employees, which automatizes the process of teaching them. What’s more, you will keep everything on track, which is one of the essential parts of running a scalable business.
About the author:
Content writer at Nifty, leading project management tool. Petar Djordjevic is also a Math student working to become a professional novel writer. In the meantime, he is learning about online writing, content optimization and ways to boost client’s website users’ experience.