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From Startup to Scaleup: 7 Best Ways To Prepare Your Business for Evolution

5 Mins read

As the business world continues to evolve, so do the challenges that startups and small companies face to survive and expand. Every business has unique obstacles to overcome, but they all have to prepare for a transformation to reach scale. This transformation is often referred to as “scaling up” and involves strategizing for growth, setting goals, and implementing strategies to reach those goals. By carefully considering the following seven points, businesses can prepare for a prosperous growth journey and set themselves up for long-term success.

Growth vs. Scaling

Scaling and growth are often used interchangeably, but they have important differences. Scaling involves expanding the current business model to new markets or customers and requires investing in technology, personnel, and marketing to expand the company’s reach. Growth results from successful scaling and occurs when these investments yield returns and the firm can increase its revenues.

How to Understand That It Is Time to Scale?

Three factors show that it is the moment to scale up. First, you must understand your product or service and how it fits the market. It’s also vital to analyze your user acquisition rate and the change rate of your revenue stream. Additionally, it may be the perfect time to open up new opportunities if you’re reaching the limit of what can be achieved without expanding further.

Let’s explore the essential components of scaleup:

Good staff

Fair staff are a vital part of any business’s scaling up. Experienced employees will ensure your business grows and thrive.

Previous goals achievement

The most obvious sign that it’s time to scale is achieving and exceeding previously set goals, causing the need to re-evaluate and expand the company.

Strong cash flow

A stable cash flow is the lifeblood of any business, especially for startups looking to expand. A revenue stream ensures the company has the necessary resources to invest in people, technology, and marketing. The company can quickly develop into new markets and customer segments. 

Quality IT systems

Sound-working IT systems provide the necessary infrastructure for effective operations, help reduce time spent on manual tasks, and enable the storage and sharing of data securely. Having reliable IT systems means updating hardware and software infrastructure to handle increased workloads without disruption. It also means having adequate IT support to monitor systems and troubleshoot any issues that may arise.

Preparing the Startup for Scaleup

Once you have determined your startup is scalable, you should prepare it.

  1. Conduct a thorough review of your business model to identify potential areas to scale up, such as customer segments or product offerings.
  2. Analyze the market and understand the opportunities in each region. Knowing when and where to extend is vital to maximize growth potential.
  3. Develop a strategy for scaling up by creating goals and objectives and plans to reach them. This includes setting timelines for each process step, from research and development to launch and beyond.
  4. Invest in resources such as technology, personnel, and marketing that will enable you to take advantage of new markets and customers. For example, you can build your own CRM system to streamline communication, track interactions, manage leads and opportunities, and gain valuable insights into customer behaviors. This will ensure you have the tools to scale up your business successfully.
  5. Prepare a financial plan considering additional expenses for scaling up your startup, such as salaries or materials costs. This readily available information can help you make informed investment decisions and budgeting during this growth stage.
  6. Utilize data-driven insights from analytics tools to determine which strategies yield results and which are ineffective at driving growth.
  7. Create systems for tracking progress throughout the scaling process to ensure goals are being achieved on time and budget.

Scaling up a startup takes hard work, dedication, and an understanding of the potential pitfalls that come along with it. By following these seven steps, entrepreneurs can prepare their businesses for success in the long term. Additionally, by monitoring cash flow and investing in resources such as personnel and technology, they can ensure their startups have the best chance at rapid growth and success.

Where you should not go overboard

It’s important not to go overboard when it comes to spending. This is especially critical for startups with limited funds getting off the ground. Still, even established companies must be careful not to lose money once they have a reasonable cash flow. Invest only in necessary improvements instead of frivolous items or unnecessary investments that could result in financial loss. Furthermore, stay disciplined with money and set realistic, achievable spending goals—think short-term gains over long-term rewards.

Project management is another area where startups should be careful not to overspend their resources or spread themselves too thin. When taking on new projects, estimate the time and cost of completing them correctly and choose resources wisely. Suppose you are overstretched on human resources or have a tight timeline. In that case, outsourcing may be an excellent option to help manage workloads better and allow everyone on board to focus on delivering quality outcomes without unduly putting pressure on the team members.



The journey from startup to scaleup can be a difficult one. It requires careful preparation and dedicated effort. By creating a solid business plan, securing adequate financing, and developing strategies for growth, entrepreneurs can give their businesses the best chance of success. Additionally, ensuring that the company’s team is equipped with the necessary skills, resources, and tools to succeed is important. Finally, entrepreneurs should look to the success of other companies for inspiration and ideas on scaling their own businesses.

Yuliya Melnik is a technical writer at Cleveroad. It is a web and mobile app development company in Ukraine. She is passionate about innovative technologies that make the world a better place and loves creating content that evokes vivid emotions. 

How to scale up a startup: Companies’ experience
Examining examples of scalable startup entrepreneurship would be helpful before transitioning your business from the startup to the scaleup phase. Here are a few stories from other companies.

Cobone. Cobone, a leading Middle East deal website, understands the importance of scaling a business. Their co-founder, Pieter Sleeboom, is an excellent example of this, as he has already shared his experience scaling two startups. He emphasized the divisions of roles when building an organization and stressed that everyone should be in sync to talk with one voice.

For anyone having a problem with their tech setup to scale smoothly, Cobone provides convenient solutions. Just fill in their short contact form; their BA specialists will consult accordingly. In addition, they have a subscription button for those who want to keep updated with news or tips tailored to your interests. With Cobone’s help, all businesses can rest assured to scale and accelerate growth successfully.

Letgo. Letgo is a fast-growing app that helps people buy and sell items quickly. It has been such a success that its valuation has grown to over one billion dollars in just two years, and the app has over 75 million downloads. This success can be primarily credited to co-founder Enrique Linares and his dedication to his team’s empowerment. He recently advised startuppers, emphasizing the importance of facing any hurdles that come their way, studying what your rivals have done right and wrong, and integrating this information into the scaling-up plan.

Prepare for growth stock image by ChristianChan/Shutterstock

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