Visit the gym before scaling
Visit the gym before scaling
Good to think about
1. Many people are under the impression that a startup is like a rocket with a big red button. You validate your idea and demand, and boom, your rocket takes off, and you start scaling. But that's not quite true. Between the validated idea and successful scaling, there's a tedious growth stage when your startup transforms from a temporary organization with an amateur team into a real business.
2. It's like hitting the gym for the first time and attempting to lift a 100-kg barbell. Your joints aren't ready, and your muscles are weak. The barbell will simply smash you. The same goes for a startup that has recently validated an idea and is raising funds for rapid scaling. The startup either will not raise the round or will be smashed under the weight of this investment.
3. But investments are crucial for the growth stage because you need to invest in the team, infrastructure, and business processes ahead of generating revenue. To eventually make that 100-kg barbell, you have to gradually add extra weight step by step.
4. That's where you need fuel to nurture your business muscles along the way. This money is more modest than what's required for scaling and comes gradually to avoid overwhelming your startup. This stage is typically covered by business angels and public scholarships since the funding amount is too small for venture capitalists.
5. Additionally, the risks remain high during this growth stage, often referred to as the "Death Valley." You achieved your first results (the validated idea) with enthusiasm, but now you face many systematic routines that require different skills. At this point, many enthusiasts break down.
6. Testing the core idea is crucial during the initial stages, but at the growth stage, it's the team that is tested. It's not about whether the team can continue doing the same things, but rather if they can overcome new obstacles. This stage is necessary, and there's no way of skipping it.
7. The good news is that while you can't speed up growing your physical muscles due to nature's limits, the time it takes to grow your startup depends solely on you.
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