Managing Scale is critical for startups as well as corporates.
Scaling-up a start-up is the vision of every founder and usually he /she does whatever it takes to secure the exponential growth. Same with large corporations or banks or even governments, which introduce digital transformation projects and need to scale them up so they become the new business norm. Imagine a bank introducing a new lending platform for small business. They need to make it work and scale in order to replace the current practice.
In all cases, the scale-up process is the same for all kinds of companies, it contains two phases and it is HBR that introduces it in a very interesting way (https://hbr.org/2023/01/the-overlooked-key-to-a-successful-scale-up).
The 1st phase is the Exploration phase, where the company explores the product-market fit of its product, service, project or idea if it is a large corporation. The 2nd phase is the Exploitation phase, where the company tries to “cash-cow” the business model that proved successful. Companies fail scale-up, when mismanage the middle stage that means the critical phase between exploring many opportunities and exploiting one, or the few that will make the endeavor successful. This part is called Extrapolation!
During this mid phase, which is heavily consuming resources, companies aim for profit-market fit. They need to demonstrate not only that the venture can ramp up revenue rapidly but that every new customer brings in additional revenue and incurs only marginal cost, the key to profitable growth. For start-ups this is a survival issue but also for large corporates, it rates as a top priority since almost 95% of new products or services that are introduced fail to reach their goal (https://medium.com/product-center-of-excellence/why-so-many-product-ideas-fail-6a90af06c15a) and due to digital transformation there are many of new launches.
FUND4ALL – www.fund4all.gr – was founded aiming to offer exactly this flexibility to companies, small or larger. Working exclusively with fintech market, we have the knowledge of the business models and technologies, but also the people to support them in order to play this role. We can build parallel to core activities, the new apps, platforms, services, products which entail scaling risks and turn the process to a controllable variable. This way, the risk is mitigated, market tests do not harm main business and only the potentially successful projects move forward. We can even build staff, operate them, test them and technically mature them before they are officially launched to the market.