Scale up business models to attain product market fit and to enable fast growth.
Scale strategy
After the first months of building the venture, you now have a working MVP with first traction on the customer and commercial side. The challenge to transform your offspring into a flourishing and profitable business starts now.
1-6
years
Substantial growth
of the venture
1
Early stage year 1 & 2
The venture is just out of MVP and has found an initial product-market fit. You identified a first target group or cohort that likes our product and generates recurring revenues. At this point, you want to invest into growing these cohorts and build the infrastructure you need to handle volume. That varies from growing your sales unit or further investing in growth channels.
2
Mature year 3 & 4
After successful growth over the first years, you start to see first challenges to continue the high growth numbers in your existing cohorts. CAC’s are increasing as you have reached a certain ceiling. It’s now time to expand the market. Either by replicating the initial growth in new regions or by enriching the product portfolio. While you want to build future growth areas, it’s also important to focus on key drivers like COGS and become profitable in your older cohorts.
3
Final year 5 & 6
The venture has been growing over the last couple of years, acquired a strong and loyal base of customers for both initial and newer products, and has been expanding into new markets. Likely profitability was reached, at least in certain product portfolios and/or markets. It’s now time to outline the path for the next 20 years. This phase covers preparation for an IPO or a trade sale. Depending on the exit path, the venture needs higher growth or increased profitability.
