Building a growth scalable business starts with choosing the right idea.
Let me explain.
Imagine two possible business models in the restaurant industry.
In one model, you can choose to start a restaurant chain, or you can choose a model to build a platform that aggregates existing restaurants to enable users to discover and book a table with them.
In both cases, you are in the food business….. but,
While one model can scale fast, the other requires significant investment every time you open a new store.
(This takes us to number secret)
What's the Number 1 secret of ideas that scale?
The common thread with every idea that scale is that it depends on technology and is designed to grow fast, both in value and its customer reach.
Let’s see a few examples:
- Alibaba/Amazon - the largest retailer in the world does not have inventory
- AirBnB - the world’s largest accommodation provider does not own a room
- Uber/Didi Chuxing - the world’s largest taxi company does not own a car
- Google - The world’s largest information portal does not create the contents.
Let’s see the other secrets that make startups to scale.
1. BUILD PRODUCTS THAT YOUR CUSTOMERS WANT.
Startups are meant to solve problem that people are seriously annoyed about, and are willing to pay to let it go.
The first step is to validate your startup idea by building a MVP.
Note that your startup is not ready to scale until you build an MVP that show that it works and that there are actual customers that are paying or willing to pay for the product.
To achieve this goal, you need to focus......
Focus on serving your customer and building an amazing product and also continue to keep the product relevant to your customers' evolving needs.
2. CREATE A GROWTH PLAN FOR YOUR BUSINESS.
What makes some startups scale and grow faster than the others?
According to Sangeet Choudary it is growth engine.
“Scaling a startup is a lot like starting a car. There are two ways of starting a car and making it run. You can drive another car and ‘bump’ into the first car to make the first car move. The car does move with that ‘bump’, but that movement isn’t sustainable. The best way to run your car sustainably is to fit it with an engine.”
To put that in context, offering free services, promotions, PR and big-ticket ads is good but they are like giving your startup a “bump”. Therefore, in order to grow your startup at scale, you really need is a growth engine.
You can get started with resources in this growth hacking masterclass slides.