Business Growth Framework - Startup Stage
This framework is the starting point for much of the work we do at Build Grow Last.
At the startup stage we are confident that we have a business where we understand the market and can deliver value, all of this was proven by running this as a low risk side hustle. Now the stakes are higher, this is the stage where we leave the comfort of another employment and make the new company our main source of employment and income. Now we’re all about market fit and consistency.
How do we build a company around this?
Will people come on the journey with us?
Learning to pivot.
Marketing
Your job now is to consistently attract ideal clients. Refine the messaging, double down on what works, and introduce measurement. What we need to prove is that we can put £1 into the marketing machine and get £2 (or more!) out of it.
Where do we find our customers?
What do they respond to from us?
What makes them act?
You’re moving from testing to traction.
Sales
Begin to formalise the sales process. In the same way as you have processes around how you make the product or deliver the service you can have a process about how you sell.
Document it, what you say, when you say it, what questions you get.
Introduce tools, you’ll have too many opportunities to keep them in you head, CRM is needed.
Create repeatability, use the documentation and the systems, start to trust them.
You’re still likely doing most of it yourself, but now you're testing if anyone else could sell like you.
Operations
You need to move from “we can deliver” to “we can deliver reliably and within the rules.”
Introduce lightweight systems and keep them simple:
Templates - each time you run a process, document what’s different and update for next time.
Checklists - your super power, checklists will speed up everything and remove the opportunity for error
SOPs - essential for your compliance. It’s not just about what you do, but proving that you did it!
In short, write down anything that takes pressure off you without sacrificing quality.
Essential Reading: Atomic Habits, James Clear. There’s a reason James Clear spent years in the best sellers list. Start here for building habits/systems around your work and let the goals take care of themselves.
Finances
Start to formalise things here. You need an accountant and a robust software package that can grow with you. Follow the same financial processes and refine & improve them over time.
Create checklist systems for invoicing, tax collection and payments.
Run a payroll for yourself, even if the amounts are small.
Make forecasts in excel, even if they’re simple they will keep you grounded.
Build a basic model of cash flow and unit economics.
Seek advice if needed. Profit isn’t guaranteed—you have to design for it.
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!)
Profit First, Mike Michalowicz. So you can bake profit into the business from day one. Most folks leave this a ‘couple of years’ while things settle in. You can do that, or make money right away, this book shows you the latter.
Essential Tools: Xero or QuikBooks. Your accountant should bundle this software into your package with them. Don’t use their in house package, you want one that integrates with the rest of the software you’ll end up with in the business. The larger packages will always have haters, but they also have the most users so you get the features you need.
Legal
Make sure you have solid foundations. You need to look at the legal arrangements across all of the tiers of the business (use this framework as a checklist) starting with:
Customer contracts.
IP Protection.
Employment basics.
If you’ve used a templated set of contracts and arrangements so far you’ll probably find that you ‘outgrow’ those during this stage. You might have to talk to lawyers!
Think of this as “building the scaffolding” around the business.
Compliance
Introduce routine. I know! But it’s important. Set up regular reviews of compliance topics, even if it’s quarterly. Joining networking groups of folks in your industry is a great way to understand what regulations are needed and expected for your business. People love to talk about compliance because it’s the one place we all have war stories and scars!
Start preparing for industry certifications or basic audits. Think about:
What processes are needed for that certification? (Scope)
How will I know that processes are followed? (System)
What happens when processes fail? (Remediation)
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
You’re transitioning from R&D to productisation. What can be packaged? What should be dropped? Think in terms of building an offer, not just a product.
Leadership
You’re probably hiring—contractors or early team members. Your leadership is now about communication, sooo much communication.
Set a direction and check in often. Start here:
Daily, be present in the office or on slack/teams
Weekly, get the team together or on a call, talk tactics and get people working together
Monthly, explain how what we’re building aligns with the company vision, reward what’s working
Quarterly, show how what we’re doing leads our industry, is ground breaking, important work
Twice annually, get everyone out of the office and doing something fun (not work)
People will follow clarity and consistency.
Mindset
This is where grit meets focus. Startup life is chaotic, but you need to stay aligned to your core priorities.
Make sure you have a clear line of sight from your work, to the goal. Even if it’s far off.
Stay healthy, look after yourself
Block time for deep work
Plan ahead quarterly, monthly and weekly
Talk a lot, to your co-founders, team, mentors and family. The answers are there.
Avoid shiny distractions. Channel your ambition into traction.
Essential Reading: Grit, Angela Duckworth. Perseverance can be learned like any skill. Angela has shown us the way.
Getting things Done, David Allen. Books don’t get legend status for no reason. The writing is a little old fashioned these days but the principles are solid.