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Many startup stories of iconic brands sound a little like fairy tales. Each of these now global companies started with a few people and now employs thousands across the world. The untold story is about those who did not succeed. And there are plenty. More than two-thirds of startups never deliver a positive return to investors.
In fact, 23.2% of private sector businesses in the U.S. fail within the first year. After five years, 48% have closed. High inflation, high interest rates, a tight talent market and demanding investors don’t make success easy. As CEOs like me set out to grow their businesses, they will need to constantly track economic conditions and consider the company’s strategy, its value and its tolerance for risk amid a changing world.
While we can’t be sure of every little detail that went into Apple, FUBU or Starbucks’s scale-up journeys, we can be confident in one important element: Their founders grew their companies in effective ways, navigating the environment around them, reading the signs and acting accordingly. If you are an entrepreneur ready to take the next step for your business, here’s how you can put one foot in front of the other and go from aspiration to ascent:
Anchored in a strong foundation
You already have a strong foundation for your company. The business is your baby, your biggest and brightest idea, and you’ve worked hard to give it the best start in life. But as organizations mature and grow, it’s up to their leaders to ensure that they remain true to their foundational values, vision and mission statements.
Much of a scale-up’s success comes from establishing, maintaining and building on a solid culture where team members feel a sense of belonging and inclusivity. Yet, accomplishing this strong, supportive environment is not always easy, especially when a business is in its growth phase.
That’s why a strong coaching culture is such an important part of the overall corporate culture. A strong coaching culture boosts engagement among leaders and employees while also focusing on supporting the strategic direction of the enterprise. A coaching culture offers employees at all levels the opportunity to grow their skills, enhance their value and reach their professional goals.
A shared sense of purpose is the first step to success. Establishing mutual respect for each other’s skills and contributions also fosters achievement since the win is everyone’s and not just someone’s. A McKinsey analysis shows that organizations that establish this sense of culture have less attrition, which is an essential element for scaling. Nourishing the business’ roots aligned with culture will only serve leaders better as they begin to grow.
Related: What Makes a Great Company Culture (and Why It Matters)
Hone strategic vision for planning, support and growth
Startups that succeed are the ones that have a clear vision, targeted strategy, and process for looking ahead toward potential risks and rewards. This strategy must start with leaders clearly communicating goals and incorporating relevant input from stakeholders, including the board. Professional coaching helps these leaders hone their strategic vision, achieve growth goals and provide structured reflection and accountability.
Peter Drucker famously said that one is a leader only if they have followers. Leaders must first identify the key roles and skills needed within their organization to build a strong team capable of supporting scale-up growth. What are your current and future needs? What are your long- and short-term goals? Consider both technical, professional and people skills as you move along.
Nothing is static these days. New gains in technology, new approaches to problem-solving and new tools are offered to us daily. Organizational and business success hinges on your effort and ability to provide ongoing education for your teams. Investing in professional development, including coaching, can foster a workforce that is able to weather changes, seize opportunities, manage challenges and scale up growth.
Related: How Great Leaders Communicate Their Vision
Keep an eye on resources
With rapid growth comes increased pressure to manage limited resources efficiently. Leaders and their teams must clarify vision, priorities, and the activities and resources that have the most impact on making strategic choices. Through doing so, team leaders are better situated to delegate responsibilities effectively, thus avoiding burnout. Don’t consider burnout as a badge of honor! It can make or break your organization.
As a leader, you need to take care of your team. This is your responsibility. Even a greater one – take care of yourself! Without your vision, thinking and passion, the business, especially in its growth stage, may not be able to move forward. Plan, prioritize, act and rest to rejuvenate.
Check your own work. Founders and CEOs have a tendency to “just do it myself.” While entrepreneurs will always have a personal stake in the business, it’s also important to recognize as your business scales up, your role as its leader will need to evolve with it. This involves relinquishing some control over day-to-day activities to members of your team so you can shift to a more strategic role. Giving your employees and company a chance to take on new challenges and knowing that this shift to roles sets you up for even more future success is the best reward.
Related: Building Your Business With Limited Resources? Here’s the Mindset You Need to Succeed.
Strong foundations empower strong growth
It’s hard to think about your idea of graduating from a startup to a scaled-up business. But it is so worth trying! If successful, the idea will change the lives of many, not just yours and your team. Always remember your roots and remember where this passion is coming from. Build a team and provide the support and coaching they need. Work hard and manage your time and resources. Before you know it, your business will dazzle many, including you!
