28 Sep Start-Up to Growth-Stage – Now What??

According to Fortune.com article Transitioning from a start-up to growth-stage Company written by Glenn Soloman there are four stages to a company as they move into the growth phase. A start-up will move through these and possibly more stages as they hit their growth spurt. Glenn focuses on these four:

1)  Hidden gems: These are highly skilled and highly valued employees. Just because they are highly valued it does not mean that they are in upper management. These are individuals who are 10 times better than anyone else. Because of this, they should be easy to spot. For example, one sales engineer was responsible for 50% of a 100 million dollar sales price of the company. When the CEO left he took this sales engineer with him and at the second company this sales engineer was responsible for 25% of a 1.5 billion dollar company valuation. That is one hidden gem! Find them (they should be easy to spot) and keep them happy and close at hand.

2)    Find your flywheel: As a company grows, it is important that they not only get bigger they also get better (better products, production, service, even shipping – just to name a few). Glenn Soloman states “Just as a flywheel collects energy over time and then delivers it at rapid and increasing rates, you need to cultivate and nurture sources of potential rapid growth that you can unleash when needed to help propel expansion.”

3)   Stay focused:   Glenn Soloman further states “When you begin to see your core business ramp, it’s tempting to assume you’ve nailed it and start looking for expansion opportunities. Mistaking early success in your core business for an ability to succeed elsewhere can be fatal however.” As a company grows, it is best for them to continue to continue to focus on what products or services that form their basis of offerings. Sure it’s great to add another idea or product in the mix from time to time to see if it will build business but it is equally if not more important to keep the wheels moving in your core business category.

4)   Professionalize your processes: Once you pass the start-up phase of your business you then need to look at your internal processes and continue to upgrade them in order to maintain professional standards. Gone are the days when you are just happy to have the product shipped on time and that you have met payroll for the week. Now is the time to start thinking strategically at ways to improve your internal procedures and how to promote continued growth.

The growth phase is an exciting part of a company’s life cycle. There are many hurdles behind them but equally important ones in front. As you grow bigger with time it is good to focus on finding those hidden gems, and taking great care of them, as well as keeping focused on the next step professionally.