Tips for Scaling Your Tech Startup

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Every entrepreneur dreams that their startup will be the Next Facebook, Uber, or Airbnb. Scaling a business is a sign of success and reassures an entrepreneur that they are headed in the right direction. However, if you try to scale too fast, your business may collapse. One study found that up to 74% of high-growth startups failed due to premature scaling.

The figure is higher for tech startups which have the highest failure rate of all small businesses. On the other hand, scaling too slowly can also make you miss opportunities that could help your business grow. The trick is to find a balance. Here are five tips you can use to scale your tech business.

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Determine If You’re Ready for Growth

You can use multiple indicators to get a clear picture of whether it’s the right time to expand your startup. Review your sales growth forecast–the number of new clients, the projected orders, and the revenue you intend to generate. Do the same for your expenses. If you’re getting more orders, what would it cost you to get the systems and labor force to handle those orders? Your current Profit and Loss statements should help you evaluate and plan for scaling.

Get Funding

To scale your business, you need money. You may need to deploy new technology, hire more staff, and create advanced systems for measuring and managing results. Business development experts advise utilizing the available resources to expand a business. You can also get a loan; so long as it isn’t a predatory loan and you can afford to pay it back.

Inquire about small business development loans in your area and business grants. If you prefer to use your own business resources, you can apply for car title loans online using company vehicles. This is better than borrowing money from investors and giving them a stake in your business.

Invest in Technology

You can’t talk about expanding your business today without talking about technology. You can significantly cut down labor costs and run business processes more efficiently if you invest wisely in technology. Consider automating most of your business operations. You’ll minimize human error, reduce work turnaround times and enterprise costs, and improve workflow efficiencies. Additionally, integrating systems can enhance data consistency and maximize productivity.

Surround Yourself With Those Who’ve Done It Before

Technology is always changing. Tech solutions that worked a decade ago have evolved or become obsolete. But the good news is business expansion methodologies don’t evolve at a rapid pace, so you can borrow a leaf from those who have gone before you.

Surround yourself with those who have been on the same path and learn their tried and tested methods. They’ve made mistakes, failed, and gotten back up again–so they can show you the way. You can significantly boost your chances of success by consulting them and applying what you learn.

Scaling a tech startup is more challenging than scaling other startups because tech startups have a high failure rate. But with proper planning, it’s possible. Consider bootstrapping or get an affordable loan. Invest heavily in technology to speed up processes, enhance efficiency, and boost productivity. Lastly, don’t forget to seek practical advice from those who’ve scaled their businesses.