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Scalable Start-ups and Attracting Investors

Scalable Start-ups and Attracting Investors

Launching a new business can be challenging and daunting. Firstly, you should begin by raising enough money and building just the right team to make it to ‘Basecamp’. Facebook started from a college campus, Uber was an elite car service and Twitter was only a podcasting company. Each of them demonstrated the potential for scalability, attracting investors and grew into billion dollar companies.
Once a start-up has established the product and the market, many will need to introduce investors to enable them to move their business forward. These investors are looking for businesses with proven ‘scalability’; your business needs to have the potential to multiply revenue with minimal costs.

To make your business more scalable and attract investors you must:

1. Build an Attractive Business Plan and Model
Scalable businesses have very high margins, low support and minimum staff. These are some of the characteristics investors will be looking for in your business.

2. Build a Strong Team
By building the right team you can ‘work on your business, not in it’. Scalable businesses have the right people to run the scaled business – leaving you to make key strategic decisions and grow your business and people.

3. Outsource to Optimise Leverage
Growing businesses need expertise and developing these skills internally can be slow and expensive. Outsourcing can be a great way to obtain expert help at a manageable cost. However, never outsource your core competency.

4. Utilise Technology and Maximise Automation
Labour intensive start-ups are not easily scalable. You should incorporate technology, automation and approaches which are not labour intensive to allow for growth.

5. Attract and Relish Investor Funding
Investor funding can give you a growth curve that organic growth cannot. Investors can be vital in growing your business effectively, often bringing to the table expertise and experience.

6. Your Business Needs to be Continuously Improving and Open-ended
You need to create a strategy that focuses on continuous innovation, constantly adapting to be perceived as scalable.

Not all businesses need or want an investor. However, if you do want to attract investors you need to start demonstrating that your business is scalable.

The S4B Team
We are a team of Chartered Accountants and Profit Consultants who work with Venture Capitalists and Start-ups to help maximise profit. Send our team an email at info@s4b.co.uk or call 01628 623444 to see how we can help you.

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