When Do Startups Need To Think Like Big Businesses?
When Do Startups Need To Think Like Big Businesses?
Startups pride themselves on being nimble and fast-moving. However, there are times when fledgling businesses would benefit from borrowing strategies from more established firms. Whilst too many procedures and bureaucracy can suffocate startups, implementing select ‘big business’ thinking early on can help lay the groundwork for success and scale.
Though startups thrive on innovation, speed and risk-taking, employing some enterprise logic at the right times can support sustainable growth. Understanding when to take a more prudent approach will allow new ventures to flourish, without sacrificing their agility and spirit. The key is balancing disruption and practicality. With the right combination, startups can set themselves up to become the corporations of the future.
Get the details right from the beginning
“Whilst success is never guaranteed, your fledgling business will have the best possible chance if you set it up correctly from the start,” explains Claire Emery, Partner at accountants Elbsy & Co. “The question is, how do you start a business and run it successfully? Setting up a business can be complicated, especially when you’re juggling tasks and experiencing the inevitable highs and lows as you race to get things underway.”
Choosing a business structure is vital. Should you be a sole trader, partnership or limited company? Each has pros and cons around control, liability and tax implications. The correct structure will support your goals now and in the future.
Though startups change fast, your business foundation should not. Take time to evaluate all options and understand your obligations fully. Speak to experts if needed. What seems like an inconvenience now will give you stability and ensure compliance down the line. Build for the long-term and your startup will thrive.
Building robust processes
Startups live fast and break things, but some structure is necessary as you grow. Implementing robust processes for key operations like hiring, product development and customer service will provide much-needed consistency and quality control.
Standardised job descriptions, product roadmaps and customer support procedures may seem stifling, but they give new staff a blueprint and help startups scale smoothly. Repeatability is the key - identify what is working and formalise it.
Too much red tape will only slow you down, so keep processes lightweight. Focus on mapping out essential tasks and how they drive your goals. Ask yourself what protocols would have alleviated past difficulties. Look for areas that lack cohesion and address them one by one.
Governance and oversight
Startups need oversight to facilitate accountability and avoid 'founder's syndrome'. Establishing procedures for review and decision making, such as an advisory board, helps guide businesses in the right direction.
Governance is crucial for any company, especially startups looking to scale. Some level of oversight keeps businesses on track to achieve their mission and goals. It also ensures compliance, mitigates risk and provides external feedback and expertise.