Startups are not supposed to stay young forever. There will come a time when they have to mature. After all, this type of business is supposed to go big. Otherwise, there might be a problem with its business model. It might not even be sustainable or profitable. If you believe that your startup is practical and that its model is scalable, there will always be time for its growth. You just have to stick to your strategies, modify them when needed, and get rid of those that do not work anymore. There will come a time when you will easily spot the signs of the start-up’s growth, and that is what you need to watch out for. Because what will happen next is crucial: the transition.
A lot of start-ups fail in the transition stage due to many reasons, mainly due to lack of preparations. Some fail because they have underestimated the amount of work involved. Either way, you have to realize that the success of the startup’s transition depends on your readiness, and that is what this article is preparing you for. Below are some of the things to keep in mind that will help your startup transition into a legitimate company:
Formalize the roles
When your startup is expanding and turning into a full-fledged, profit-making business, you realize that there will be more people coming into the mix. These people are handpicked to fill posts that are important for operations. However, they may be working on some tasks that are not part of their scope. At this point, what you should do is start formalizing the roles. Define the roles so that there will be no overlaps, which are sometimes the contributing factors for operational inefficiencies and conflicts.
Be definite with the culture
Startup cultures are often perceived to be relaxed and fun. The culture is pretty much malleable, but when your startup is already becoming a business, your culture should have a skeleton so that you and your employees will be on the same page. The culture will serve as the DNA of your brand identity. Just look at how Procter and Gamble has done it.
Brush the operations
As you are starting to define roles and positions, defining and finalizing the operations should follow suit. What you need to do at this point is to get rid of the processes that only cause delays. Streamline the product development process and reconsider how you market your business. If you still cannot afford to find people for some areas of your business, like in the finance department, you can work with advisors, such as Xero accountants.
No startup is supposed to stay small. It is designed to grow after hitting some of your goals. When you have ticked off the boxes, that is the time that you will know that you are ready to transition. Be careful and painstaking at this part of the growth process, as it is crucial. A minor lapse can compromise the success of the transition, so come up with a great strategy.