Scaling a Startup: Post-MVP Stage
With a minimum viable product or MVP created and running, it is time to create a scalable product that satisfies a wide range of consumers. It is difficult to choose the right workflow for the initial launch, but each post-MVP stage serves a specific purpose and brings the product closer to the desired result ─ the top positions among users and market competitors. This is not an easy job, but it is quite doable.
At 7Devs, we know exactly what to do to let the product development in the right direction. In this article, we will explain how to scale any business.
How to Scale an MVP?
MVP is the first goal on the road to your dream product. It is also less time-consuming and less costly to start with an MVP before going for a full-blown product. But what should come after?
The proper route would be to continue with creating the Most Scalable Product (MSP), which is also known as MMP or Minimum Marketable Product. In the startup loop, this is a logical continuation. The MSP stage focuses on the development of business elements. It is about developing and expanding your operational capabilities to meet the demand for a product that meets customer expectations.
It is certainly more difficult to scale a startup when your business isn’t established in the market yet. But with the right infrastructure, talented team, and good support, you can safely move on with your project.
And we’d recommend you going by the following stages:
Stage 1: Gathering and analyzing feedback
You will need clear markers to indicate the pot life of the product. In other words, strong evidence that the item can be sold. Quantitative analytics and quality feedback will help you develop a good scaling strategy.
Your product must meet customer demand and expectations while the tech team needs to be aware of customer opinions. A thorough analysis will help to determine what features users expect to see in the first place.
Collect feedback on the latest iteration and make any necessary changes to the product. Moreover, you need to take into account all the data, including even the worst reviews. You will need to make changes and test the product again until you get a perfectly user-attractive version.
Only this approach will help your product develop dynamically and flexibly. And you will be sure that it brings the required income in the long run.
Stage 2: Scaling the project
The MSP stage is all about scaling — the ability to scale up service delivery or product limits to meet the growing needs of an accumulating customer base.
According to Statista, the root cause of most startup failures is the neglect of post-MVP scaling.
Going from a startup to growing at scale is not easy. If you try to grow without actually changing your business infrastructure, you will most likely fail. You need a systematic approach to expanding your business so that you have the right processes, a savvy team, or at least certain third-party support from consultants.
While thinking about how to scale your business, keep in mind the unexpected costs of support staff and scalable cloud services, including CRM, virtual contact centers, and payment APIs. It is very important to plan each stage of growth, define the strategy, objectives, and goals of the MSP stage, and set a time frame for achieving them.
The operational structure and internal hierarchy of the business will require development. You should have the departments and managers you need to solve the problem. As you grow and expand, you will need separate teams for each of the operational, administrative, and financial tiers of the company. This will provide a structure ready to grow with the business.
Stage 3: Pricing
Many companies fail at the MSP stage because they focus on the wrong decision-making choices. Your motivation should not only be profit, ambition, or growth just for the sake of growth. You should focus more on the idea of a unique and affordable offer that will be in high demand.
For this, you need to research and increase user traffic and tightly deal with the conversions of potential buyers to real customers. Think about the prices, they should be reasonable. Strike a balance between what you want and what is possible. Offer people a profitable option and your product becomes a bestseller.
A broader understanding of the core strategy of your business is critical. You will have to learn to look at your work from the outside to see the prospects and determine the correct sequence of strategic steps. Only a comprehensive and wholesome view of the business from the outside and inside will give the best opportunities for making the right management decisions.
Stage 4: Financial flows, operating assets, and financing
Efficient promotion calls for additional investments. To achieve the positive capital turnover required for trading and growth, your income must be high enough. Therefore, it is very important to keep a close eye on cash flows and funding.
Expanding your operations to the MSP stage will almost certainly mean accessing additional financial resources. You will need liquidity to expand production, hire new employees, move to larger premises or prime locations, etc.
Stage 5: Marketing strategy investments
The importance of impactful advertising is unprecedented. Investments in marketing will be fully paid off if a competent strategy is implemented. You need to know how much it costs to attract a paying buyer. This will help you stay on top of whether your marketing efforts are effective or if changes are needed.
Always check your customer acquisition cost (CAC) ─ the ratio of money spent on a customer acquisition channel to the number of customers acquired through that channel. Use any tools and performance metrics you see fit and target weak areas.
Stage 6: Analytics and testing
Quality control is an important part of product development. QA engineers must work together with the entire team. The startup environment is constantly fluctuating, so you should always look for opportunities to improve your product. You should constantly think about how to scale a startup, even if the current results are quite fruitful. Therefore, testing should be included in the product support roadmap at all stages. From design, creation to the end of the life cycle.
If the user tests are successful, the product can be presented to investors. They want to keep their money safe and want to see your MVP transform into a real competitive product.
Show them the test results and demonstrate what the income will be. Validate your business idea with numbers and real user reviews to prove your team can deliver a real result. You must prove to investors that you know exactly what the next steps should be for successful sales.
The Value of Experienced Consultants
To make an MSP successful, you need to combine key elements in the most scalable way. Startup scaleup is much easier with good support. The key areas in which a consultant can help are the following:
- Team composition: Finding talent at all levels, meeting the requirements for personnel and the employer’s HR legislation.
- Internal structure: Modernization of the business model, operating and financial systems, delivery, resourcing, accounting, and tax planning.
- Scaleup planning: A strategic business plan for moving from MVP to MSP and reporting on meeting deadlines, goals, and objectives.
- Built-in scalability: Analyze existing processes and procedures to improve efficiency, streamline your business, and develop a cost-effective operating structure ready for expansion.
- Cash flow, working capital, and financing: Financial and management reporting.
- Thorough business overview.
External virtual FDs and non-executive directors (NEDs) can benefit from experience and understanding of leadership strategy without having to pay full-time.
Conclusion
Getting to MSP isn’t a walk in the park. There are many obstacles to overcome before you feel like your startup is a stable, scalable, and profitable venture.
