Startup Funding Espresso – Mistakes in Scaling the Startup

Mistakes in Scaling the Startup Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The seed stage grows the business from 0 to $1M. The growth stage grows from $1M to $10M. The scaling stage grows from $10M to $100M. Here are the most common mistakes founders make at the scaling stage: They stop working on sales to focus on other areas of the business. The founder can never stop working on sales. They fail to control the burn. The burn rate must be managed throughout the life of the business. They fail to keep up with the competition. The competition will continually challenge the startup, and it must be managed. They look to hire "rock star" players. These rarely work out in the long run, as they often don't fit the culture. Failing to keep up with the product. As the company grows, the product continues to grow so it's important for the founder to keep up with it. Overestimating sales capacity. Founders often overestimate how much the team can manage. Reaching for the upmarket. Startups often try to move upmarket to gain a higher dollar sale per customer. Doing this at the expense of the core business is detrimental. Consider these mistakes in scaling the startup. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.