Growing Pains: Scaling issues and how to avoid them

As a founder’s startup moves through the various stages to maturity, it is inevitable that they will face scaling challenges. Scaling a startup can create the opportunity for success for a founder. However, according to Entrepreneur.com there are challenges and mistakes that a founder could face that could sink even the most successful of companies.

First, that many founders end up scaling their startup completely too soon, they jump the gun, or they rev up production and growth without having a solid footing or customer base. The second, is that founders often make the mistake of choosing the wrong people to work or do business with. Thirdly, is putting huge efforts and money behind marketing and sales because they think that is all it takes to take their business to the next level. Next, competing on price just to gain the position as a low-cost leader, often sacrificing quality and profits along the way. Another mistake founders make is remaining stagnant in their management structure even throughout growth and movement through the various stages. Next, some founders choose to ignore issues, as if they will just disappear. Lastly, many make the mistake of not tossing or eliminating the things that do not work anymore.

So, with all of these potential mistakes to be made, how can a founder avoid them and circumvent the crash and burn? Make sure the market has sustainable demand. Focus on building a strong, long-term demand in the marketplace. Choose the right people, at the right time. Find the top performers and utilize their talents to help get through the growing pains. Develop these performers and reward them appropriately. Get better as the company grows and gets bigger. Put energy into creating quality and provide exemplary customer service. Grow, alter, and change the management structure to fit the company as it moves through the stages to maturity. Address issues as they arise and face them head on, ignoring problems does not work and could cause lasting damage. Focus on goals and the overall purpose and vision. If something does not work, either fix it or get rid of it.

Patel, S. (2014, December 22). 7 Scaling Challenges That Can Sink Even Successful Companies. Retrieved from https://www.entrepreneur.com/article/240887

Transitioning from a startup to growth-stage company. (n.d.). Retrieved from http://fortune.com/2013/02/11/transitioning-from-a-startup-to-growth-stage-company/

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2 Comments on "Growing Pains: Scaling issues and how to avoid them"

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Ashley Martin
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Hi Natalie, Your post included several mistakes and possible alternatives to consider when considering your startup business. One must not only focus on building a successful company, but we must all consider and learn from past mistakes that have caused other entrepreneurs various dilemmas. It is easy to get wrapped up in pursuing the lowest bid or increasing funds for advertisement and marketing. But you must realize exactly what you are sacrificing in the long term. Do you want to sacrifice quality when you are building a business? Of course not. The competition is fierce in some industries and sacrificing… Read more »
Rakib
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I like the direct style of writing that is if something does not focus with the goal then either fix it or get rid of it. Well said!