That 90% of startups fail within the first decade proves that achieving lasting success requires more than a great idea.
A closer look at companies reveals that their success was not merely due to innovation but also to strategic practices that transformed their growth trajectories.
According to McKinsey & Company, every successful startup goes through three growth phases: build and launch, grow, and scale, and there are challenges at every stage of the journey.
So, startups must do all they can to avoid getting stuck on their path to growth.
This insight underscores a crucial reality for aspiring entrepreneurs: you must integrate proven strategies into your business model to achieve meaningful growth.
This article explores five essential growth hacks drawn from the triumphs of successful companies, with actionable advice for you to apply to your startup.
1. Develop an Institutional Perspective
Startups can thrive in the short term by focusing on passion and agility. However, as they scale, adopting an institutional perspective becomes critical.
Successful startup founders do not view their companies as a pet project but as a long-lasting entity and a force for societal good.
All big tech companies are organizations that have excelled in the power of institutional thinking. Amazon, Alphabet, Microsoft, Apple, name it. All these businesses have built systems and processes that can outlive any single individual.
This approach ensures that every team member is aligned with the company’s long-term vision.
To be clear, developing an institutional perspective does not entail sacrificing agility. Rather, it’s about balancing flexibility with a solid framework that supports startup growth.
2. Innovation as a Business Philosophy
For some startups, all the innovation they need lies in the original business idea that birthed their flagship product and service.
Innovation becomes an afterthought after the business is established and stable. This is the wrong way to go. The most successful companies commit to pushing boundaries, and that one characteristic sets them apart.
Recall that Google’s famous “20% time” policy, which allows employees to spend a fifth of their work week on side projects, led to the development of game-changing products like AdSense, Google News, Google Maps, Google Earth, and so on.
That is what happens when the leadership encourages experimentation and celebrates creative solutions.
In short, innovation should permeate all aspects of your business, from product development to customer service.
Continuously seek feedback, stay abreast of industry trends, and be ready to pivot when necessary.
Remember, innovation is not just about groundbreaking inventions; it’s about continuous improvement and startup growth.
3. Strategic Scalability
Startup founders want to grow fast, and they are not wrong to want that. Companies and products that grow fast get highlighted in the news and are celebrated everywhere.
Fast startup growth attracts investors, but there is a better way.
Many companies, in their quest for speed, compromise on the quality and integrity of their offering, and then everything goes bust.
Instead, try strategic scalability. This involves designing your business model and infrastructure to handle rapid startup growth without breaking. This foresight can save you from costly restructuring down the line.
When you build scalable systems from the outset, you ensure smart growth.
Additionally, focus on scaling your team thoughtfully. Hiring the right people at the right time can make all the difference.
Ensure that new hires align with your company culture and have the skills to support your startup growth trajectory.
4. Understand Your Customer
The good old saying goes, “customer is king”.
Despite criticisms, nothing has changed about the truth of that statement.
If you truly grasp your target audience’s needs, pain points, and desires, you are better positioned to create products that resonate and marketing messages that convert.
You want your customers to give you money, right?
Then, do what they want. Companies like Netflix and Spotify have mastered this art by leveraging data to gain deep insights into customer behavior and preferences.
This understanding has enabled them to offer highly personalized experiences and drive customer loyalty and growth.
Similarly, Airbnb’s founders initially struggled to attract hosts to their platform. By personally visiting hosts, taking professional photos of their spaces, and understanding their concerns, they were able to improve the quality of listings and drive their startup’s growth dramatically.
The fact is obvious: it’s all about the customer.
5. Resolute Decision-Making
At the end of the day, the world is moving fast. Very fast. And leaders must be able to move with it. So, indecision can be a death knell.
In fact, as a startup owner or leader, much of your responsibilities lie in making decisions. What then sets successful leaders apart from others is that the former set is known for making bold, swift decisions that have propelled their companies forward.
This does not mean it’s okay to make rash decisions, though. Certain decisions simply require time. But leaders do not always have that luxury. So, you need to balance speed with thoughtfulness by deliberately cultivating resolute but adaptable decision-making.
This requires being confident in your choices and willing to take responsibility for them. Gather as much information as possible, but recognize that you’ll never have all the answers.
Trust your instincts and be prepared to pivot if necessary. More so, it helps if you create a decision-making framework within your organization and accelerate your startup growth by decentralizing ownership across your team.
Become a Forward-Thinking Business Leader
Growing a startup is a complex and multifaceted challenge, and that’s why it’s critical to learn from the successes of leaders and businesses who have gone before you.
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