pàrt 5
INSIDE THE ENGINE ROOM, DEBUNKING THE MYTHS OF SCALING A NEW BUSINESS
.........and a business line–focused model to create a customer-centric strategy. This model allowed them to have frequent contact with customers and deliver high-quality services through client management agents, who strengthened customer relationships and loyalty. These efforts allowed Natural Intelligence to not only attract new customers but also maintain clients for up to ten years without long-term contracts. Finally, when app monetization company ironSource created new offerings, it established new units and subsidiaries to accelerate the development and growth of these products.
By carefully strategizing its next move instead of rolling out one product at a time or staying on the same path, Yotpo found several avenues for growth that drove higher revenues.
Myth 3: Structured strategies are only for large companies
For successful scale-ups, having a clear growth plan is essential. A common belief about start-ups is that strategy is only relevant for larger enterprises and that start-ups can survive by trial and error, executing blindly and pivoting constantly. However, the most successful start-ups have a clear strategic understanding of how to grow, outmaneuver competitors, win in the market, and target customer segments.
For example, retention marketing company Yotpo realized early on that its product served a niche audience, and it wanted to expand its total addressable market. Yotpo hired a senior strategy vice president, organized regular off-site events for co-founders, and spent considerable time thinking through its plan to advance further. Eventually, the company decided on a multiproduct approach, which allowed it to expand its offerings to five unique products. By carefully strategizing its next move instead of rolling out one product at a time or staying on the same path, Yotpo found several avenues for growth that drove higher revenues.
Strategic clarity enables focused execution and decision making, propelling these start-ups to market leadership positions. Aligning the organization around this strategy and investing in structured strategic-planning processes, such as quarterly planning process with cascaded objectives and goalposts, are crucial to realizing positive, long-lasting results. Companies can also implement effective performance management systems to ensure employees are rewarded based on their ability to deliver on these goals.
Myth 4: Achieving immediate goals should be the main focus for start-ups
Rather than solely aiming for immediately reachable goals, companies need to think systematically about growth. High-growth companies strike a delicate balance between addressing immediate needs and setting the course for future expansion. They have a clear sense of what distinguishes them, set bold aspirations, and consider a portfolio of growth initiatives across several time periods. While the reality of a START-UP...