intelligent

to repeat some of those initial steps before going any further . If not , then keep cranking up the handle and enjoy the ride as you accelerate towards escape velocity !

Beyond customer acquisition , increasing the lifetime value of a customer is the holy grail . You want to charge more year on year , increasing the average order value and customer retention rates . Get into a virtuous circle by reinvesting enough cash flows into targeted improvements to your product or service so that you get better as you become bigger and more valuable to your customer .

Don ’ t forget the important role people play in scaling the business

At the start of the scale-up phase , founders or a few key managers are usually pulling all the levers , doing many jobs at once . This isn ’ t scalable . New skills and new people are needed to build out the management team which can implement the systems , processes and governance to enable the business to change gear .

Don ’ t undercook the management team to save a few pounds . Strong talent makes all the difference . Equally , don ’ t overcook the team or recruit too far ahead of the curve . Bringing in big guns from big companies too early on usually fails . Founders often hold the magic sauce so keep them at the heart of things even if they aren ’ t running the business during the scale-up phase .

At the end of the scale-up phase , you want to have a strong , skilled management team and the right people in the right roles doing the right things across the business . You want everyone to know what they are doing and why , individually and collectively .

This is how you scale-up

There is always potential for growth as long as a business has enough of the fundamental qualities required to be a scaler . With the right raw material and quality product or service , the rest is all about implementation .

There is a recognised model to scaling a business . It includes breaking down the different phases and workstreams , with a focus on product-market fit , customer acquisition , customer lifetime value and talent , all governed with a KPI and datadriven approach . Underpinning this execution should be a culture where your people are highly focused , engaged and driven by a common purpose to create the best and most successful business in the market . �

Simon Philips , CEO and founder of ScaleUp Capital