Business Growth Framework - Scaleup Stage

This framework is the starting point for much of the work we do at Build Grow Last.

At the scaleup stage we have completed the process of defining what the business is and what it does, we used to be thinking about experiementation and pivots but we’ve completed those now. It’s time to scale. Scaling means doing more of the same without a loss of quality or an increase in costs. This is about

  • Building the business that can deliver for 1000’s rather than 10’s

  • Hiring teams to do this work to a template

  • Bringing in leaders and managers so we can move away from the details

Marketing

We’re past asking ourselves what works because we know that we can attract customers, we now need to do this at a larger level. Remember we’re going to build a business that can service lots more customers so we need to make sure those customers are ready.

  • What does out marketing team look like?

  • Should we use agency folks, or be all in-house?

  • How will we track our successes as we grow?

But don’t forget to leave some space for innovation? Social platforms and customer preferences change.

Sales

It’s time to take the leaders out of the sales process. That doesn't mean you’ll never speak to a customer again but the process, the craft, of selling needs to be within a new selling team. They’ll bring you in when they need you but the chasing and negotiation is up to them.

  • How will we recruit and incentivise a sales team?

  • What tools will they need to understand and keep track of their customers?

  • How will you know that they are being successful, what will we track?

Sales can be volatile in your business, expect to steady this part of the ship and stay close to these folks.

Operations

The operations of the business need to run like a Swiss watch when you add growth. Any ‘leakage’ in your processes or technology will immediately become a human problem with a human fix and that will not scale for us.

  • Build on the templates and tools from the prior stage, use specialist people and tech for your industry and sector.

  • Manage what’s happening, you’ll need to build reporting to make sure you know that the work is being done and what’s holding the processes back.

  • Make investments here that will last for years, you’ve proven you can do it, now double down on longevity.

Finances

When your business machine is humming away you need to start to run it from the books rather than from the shop floor. Scaling business owners bring in finance professionals to help them think in multi-year terms when it comes to building teams and infrastructure.

  • Consider a fractional CFO to build out financially sound growth plans

  • Think about funding options for your scale, you’ll move faster than you will against cashflow funding

  • Hand over book keeping to a reasonably sized accountants, make sure they have clients of your target size

Stay close to the numbers too, you should be getting monthly accounts and weekly process reports.

Essential Reading: Any ‘small business’ guide. Most of them are the same in the basics and they will help you understand what’s needed and answer any questions you might not want to ask the accountant.

The Oxford Dictionary of Accounting. Because folks will throw terms at you that you need definitions off (not the random opinions of the internet!)

Legal

Your lawyer will start to take you to lunches around this point, you’ve moved from a ‘now and again’ client to one that needs much more help. Lean on this support, even when it’s expensive.

  • Contracts are part of the process, not optional, automate this

  • Your IP has a value, protect it carefully.

  • Understand your legal responsibilities to your growing team

When you get to the later stages these legal aspects protect you from attack and maximise the value you’re building in the business.

Compliance

With size comes scrutiny, make sure you understand what regulations ‘kick in’ as you get bigger. Consider hiring a firm to manage compliance for you, or at least allow time for operational leadership to manage this in house.

  • We should always be within compliance, no remedial work needed.

  • This is part of the culture. Safety, security, hygiene, they are just how things are done.

It’s tricky to put yourself in the role of the auditor, but it’s good to do before one attends the office.

R&D

Here’s the paradox. As you scale what’s working you need to be scanning the horizon for what’s next. This is a key role for you as a leader. The organisation that does a few things very well will create it’s own inertia to change. You are the one that can release the brakes, rally the troops, change the course.

  • Carve out time for R&D, get the people who think ahead out of the office and in a room

  • There’s not a rush, you can plan time for innovation and release when it’s ready. Take your time and wow your market.

Leadership

You’re moving from being the hub to empowering the leaders around you. Take your time but set the boundaries. Allow people to make mistakes and use these as chances for learning.

Set a direction and check in often. Start here:

  • Define the roles, then let them get on with it.

  • Delegate your authority, and set expectations about reporting back

  • Build the leadership culture. No-nonsense, businesslike, satisfying, playful - what works for you

People will follow clarity and consistency.

Mindset

You’ve got to let go. When the team is build you have to trust them and let them have at-it. No great business is bottlenecked on one leader and nor can yours be.

  • It’s OK to not know what you’re going to do today

  • Your job is to look ahead, anticipate problems and take advantage of opportunity.

  • You have to balance staying close with not getting in the way.

Leadership becomes about letting go, not doing more.