Published on September 23rd, 2014 | by Jose Vasquez0
5 Keys to Managing Startup Tech Companies’ Expansion
Startup tech companies attempt to grow as fast as possible, but growing too fast can be problematic. Use these keys to better pace that expansion.
You’re passionate, ambitious, and motivated to grow your startup tech company as fast as you possibly can. And there’s nothing wrong with that eagerness—as long as you don’t get lost in it.
Too many startup tech companies have made an error in expanding too quickly. If you offer a product before it’s finished, you could alienate your entire audience. If you expand into new markets before understanding your original target, you could lose both.
Follow these careful, modest strategies to control the speed and aggression of your technology company’s growth, and avoid the pitfalls of radical expansion:
- Have a Plan. This should go without saying, but you need to have both short-term strategies and long-term strategies. Make a calculated and conservative plan to expand your company, and follow that plan as carefully as possible.
- Pay Attention to Your Cash Flow. Bad cash flow ruins too many businesses. Pay attention to how much money you have coming in versus how much you’re spending. Don’t borrow frivolously or you’ll pay the price later.
- Assess Your Human Resources. Can your team handle your current pace of growth? Get a feel for everybody’s workload, and consider hiring new resources if necessary, ideally before you break into a new market or launch a new product.
- Phase Your Approach. Focus on the minimum viable product at all times, and split your growth into distinct phases. Don’t go overboard by trying to grow in too many areas at once. Trying to accomplish multiple goals simultaneously isn’t necessarily bad, but make sure you are focused on one phase at a time.
- Listen to Your Customers. Nobody knows you better than your customers. Their needs are first and foremost, so listen to their feedback as you roll out new features or unveil new plans.
It’s easy and good to get excited about growth, but you need to have a solid strategy if your business is going to grow successfully. Plan conservatively, work in phases, and listen to your team and your customers.