Spreading Out: Scaling During Covid-19 Times
These are unprecedented times, to say the least. As the world around us changes at an alarming pace, businesses in a wide range of verticals find themselves dealing with growth-related dilemmas. While some were forced to put their scaling plans on hold due to the COVID-19 pandemic, others find that this is the best time for their business to take things to the next level. Smart scaling is always a challenge, but right now, there are specific issues worth noting. Here are some of the main hurdles to overcome as you experience a business breakthrough during the outbreak.
Overcoming current fears
People may assume that now is the time to work with what you have and avoid dramatic moves. You are likely to meet an increased level of hesitation when approaching fundraising procedures and business expansion plans. Both processes often require a bit of convincing, but you’ll have to be prepared to answer a whole new set of questions.
When it comes to raising investments, in the first half of 2020, global VC funding dropped by 30%, and many investment procedures were frozen for a few long months. A few months later, the pandemic is nothing new, and the initial panic seems to have calmed quite a bit. Still, you must address the unique challenges of this period when approaching investors. As for scaling, you should demonstrate a lot of responsibility when presenting your scaling plans and show the BOD that you’re taking into consideration the obstacles and uncertainty caused by the pandemic.
Move fast and try not to break things
Scaling in the COVID-19 era can mean different things. In many cases, it involves a business shift of some sort. The pandemic may reveal that you should focus on other global markets, develop new features and use cases for your product, embrace a new business model, or expand your workforce.
These forms of growth all demand fast response but also require a clear and detailed strategy. You need to strike the delicate balance between flexibility and structure, as well as figure out how to deal with unique obstacles. Sales and other decision-making procedures are harder to drive right now when in-person meetings and flights are mostly off the table.
Instead of trying to invent the wheel, ditch the DIY approach, and collaborate with external experts. Work with people who bring the relevant experience you lack and will instantly broaden your network to cut the process short.
Communication is key
A fine line separates a dynamic startup from a headless chicken. What seems agile to one person might feel all-over-the-place to another. As an entrepreneur, you have the responsibility to communicate your scaling decisions in a compelling way that will get employees and partners on board. Social distancing has changed our communication channels significantly, forcing scaling companies to adapt accordingly.
Startups aren’t afraid of fast changes or rapid growth. But even if this is the process you’ve been waiting for, it’s crucial to get it right. Feel free to contact us to discuss your growth strategy needs.