Many startup companies, after experiencing rapid growth in their initial years, find themselves plateauing—or worse, declining. Despite high aspirations, this phase often brings a period of unrest as management grapples with identifying what is holding them back and determining the steps needed to take the next leap.
This is the time to revisit the fundamentals and reflect on the foundational aspects of the business. It requires an openness within the management team to accept that “What Got You Here, May Not Get You There.”
To achieve the ambitious growth you envision for the next few years, it’s essential to examine these 10 key deficits that may have crept into your business:
1. Sales/Customer Relationships Deficit
In the early stages, growth often comes from the personal networks of the founding team, supported by word-of-mouth referrals. Over time, this network may plateau, leaving the organization without a robust sales or marketing team to drive further growth.
Additionally, operational pressures may reduce the time founders spend nurturing client relationships, leading to diminished client intimacy.
2. Marketing Deficit
Historically, many B2B startups underinvest in marketing, particularly in the right channels. As growth slows, a strong marketing strategy becomes crucial for targeting new clients, segments, and markets.
With rapidly evolving marketing tools and techniques, startups must rethink their approach and identify the best vehicles to meet their goals.
3. Process/Systems Deficit
In the early days, informal workflows and one-to-one approvals may suffice. However, as the organization scales, formal processes, systems, and workflows are necessary to drive efficiency, predictability, and order. Without these, leadership risks spending too much time firefighting rather than focusing on growth.
4. Positioning/Thought Leadership Deficit
To stay competitive, startups must re-evaluate their market positioning and thought leadership. As the market evolves and new offerings or technologies emerge, it is vital to communicate expertise and relevance to stakeholders effectively.
5. New Technology Deficit
Technological landscapes evolve rapidly, and staying on outdated systems can stifle growth. However, adopting new technologies requires a strategic approach. Consider client needs, organizational core skills, market opportunities, and investment capacity when choosing next-gen technologies to bridge this gap.
6. People/Competency Deficit
Building competencies aligned with next-gen technologies is essential for growth. An informal approach to skill-building may work in the early stages, but transitioning to a structured, scalable competency framework, such as a Center of Excellence (CoE), becomes critical as the business grows.
7. Risk Management Deficit
Risk often takes a backseat during the initial growth phase, but as businesses grow, risks grow too. Reassessing risks in areas like markets, clients, technologies, and business models ensures sustainability and safeguards the organization’s future.
8. Performance Management Deficit
A lack of structured performance management systems often leads to ad hoc goal-setting. Implementing robust, metrics-based systems that cascade from leadership to junior managers ensures accountability and drives results.
9. Shared Vision Deficit
As the organization grows, the founding team’s initial shared vision may diverge. If not reconciled, this diffusion can weaken the organization’s foundation, causing misalignment within the leadership team and confusing customers.
10. Leadership Deficit
The leadership team that drove the initial growth may not always be suited for the next phase. While this is a sensitive issue, objectively evaluating and updating the leadership pipeline is critical for sustained success. Balancing leadership costs while ensuring the right team is in place is equally important.
Addressing the Deficits for Roaring Growth
Most growth-aspiring startups face a mix of two or more of these deficits. By identifying and addressing these gaps objectively, organizations can reignite their growth engines. Don’t hesitate to seek professional help to guide this process.
Fix the deficits and achieve roaring growth!
Good luck!
