In the first six months of 2020, more than 338,000 start-ups have been launched in Britain. This staggering number reflects a growing movement. Every day, more and more entrepreneurs are choosing to become their own boss, gather a trusted team, and pursue their dream.
But while we see lots in the media about the number of start-ups that are founded (and fail) each year, we see a lot less advice aimed at entrepreneurs who have reached the next stage of their journey.
Growing from a start-up to an established company is arguably one of the most challenging aspects of running a business. As an article in Forbes puts it, ‘the mission of a start-up is to search for a business model, while the goal of a company is to execute that business model.’
This post will explain how you can continue to execute your own model, enjoy your successes, and aim even higher.
Recruit specialist talent
As your company becomes better established, your budget will start to increase. This should give you the opportunity to expand your team. Start-up entrepreneurs generally fly solo, or with a small team of founders and business partners. But part of being a successful CEO is knowing what you can’t do alone.
Identify weakness amongst your team and recruit candidates that can fill in the gaps. Whether it’s someone to manage your Xero tracked inventory, a digital marketer, a part-time accountant, or an office assistant, investing in talent is an excellent way to take your business to the next level.
Iron out your company policies
Defining your company’s policies is particularly important if you’re considering expanding your team. At the helm of a start-up, it can be tempting to spend every waking moment working on your vision. But an established company will need to set policies that help safeguard a constructive, positive, and healthy working atmosphere for your employees.
These policies should cover everything from working hours, HR strategies, and company expectations. If you’re amassing a sizeable customer base, it’s also important to define the way you interact with customers and how you store their data in accordance with GDPR.
Just make sure you don’t recruit for the sake of recruiting. Expanding your business too fast is a key reason why the start-up failure rate is so high (93%), as it can drain your resources and take your business in a direction you’re not ready to realise.
Set your next goals
As you’d expect, the majority of businesses grow most quickly in their first few years. In fact, it’s been estimated that the average start-up sees a revenue growth rate of 178% in their first year, 100% in their second, and 71% in the third. So while your percentage increase will almost certainly slow down, how can you ensure you’re still making significant gains?
The best way is to keep tracking your progress, celebrating your achievements, and set the next goals you want to hit. Whether it’s a target revenue, a number of monthly users, or a market share increase, the most effective goals are both aspirational and achievable.