THOUGHT LEADER TONY MANNINO: 7 SCALING TIPS YOUR STARTUP NEEDS TO ADOPT FROM DAY ONE
Does your startup have a repeatable process that can be duplicated and multiplied without adding proportionately to costs?
7 SCALING TIPS YOUR STARTUP NEEDS TO ADOPT FROM DAY ONE
For many executives leading start-ups, it may be difficult to think about scaling a business when you’re in the weeds worrying about funding, hiring, production and other daily issues. However, according to thought leader Tony Mannino, who is in corporate leadership at real estate startup Houwzer, “For many businesses, scaling should be part of your business model from day one because, in reality, scaling is just expanding while adjusting your business model. Without scaling in your plan from the beginning, your business risks erratic swings or breathtaking stalls at each plateau as you struggle to manage your growth.”
Mannino cautions that not all businesses can benefit from scaling. He says that it’s important to analyze your model before considering a scaling strategy. The main consideration is whether your business is a repeatable process that can be duplicated and multiplied without adding proportionately to costs. “Once a startup is identified as having scaling potential, leadership should manage the business to scale from its beginning, by choosing employees, vendors and systems that are better prepared to support scaling at every level as you grow,” said Mannino
Mannino suggests 7 tips startup entrepreneurs should follow to maximize growth, profitability and efficiency:
1) Take the long view. Develop a vision of the future and position your business for its role in scaling to achieve that vision.
2) Automate from day one. It’s tempting to handle things manually or in analog at first, but don’t yield to that temptation. Automate your processes from the start and they will easily scale - one less transformation you’ll have to manage.
3) Anticipate growth pain points. If your management perspective is keeping an eye looking ahead to the next plateau, you’ll give yourself more time to identify and manage potential pain points.
4) Select team members who can scale. Whether you outsource, build an internal team or develop a combination of both, choose people and vendors who demonstrate the mental and physical dexterity to scale.
5) Invest in marketing as a growth driver from day one. Many postpone marketing until they can “afford” it - and it often turns out that they never embrace it as a priority. For scalable startups, it’s important to invest in marketing as a driver to generate buzz, awareness and traffic that proactively feeds growth to the next levels.
6) Always be focused on the customers. As a scalable company grows, management will be faced with pressures to cut quality and service, but don’t succumb. Always remember the roots of your success.
7) Watch finances like a hawk. Tight cash flow can kill the best business. Don’t outrun your resources.
According to Mannino, “We see too many startups trying to retool midway, attempting to put a scaling program in place but it may be too late to undo some foundational or cultural structure, thereby putting a damper on growth. Embed scale into your startup from the start to facilitate maximizing growth potential.”
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ABOUT TONY MANNINO
Writer, speaker, entrepreneur, business leader . . . Tony Mannino is a growth catalyst, cultivating cultures that scale. Currently, he is General Counsel at real estate startup Houwzer, serving various leadership committees there. He has successful expertise in corporate governance, new business initiation, audit & budget, labor & employment, as well as leadership management. Mannino is a graduate of Philadelphia’s Temple University and Temple’s School of Law. He has enjoyed a diverse career in real estate, law, professional services and political administration, continuing to transform organizations and businesses in the for-profit and not-for-profit worlds.
- Website: manninogroup.com
- LinkedIn.com/in/AnthonyVMannino
- Twitter: @anthonyvmannino
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