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Scaling your startup, without failing ⛰️
Stephen Moore
November 21, 2023
Welcome to EH Weekly, the new newsletter from the team behind Medium’s biggest entrepreneur-focused publication.
You can look forward to insightful lessons and practical takeaways delivered to your inbox every week.
In this week’s edition, we discuss:
How to do scale your startup, without failing
What to know about working with freelancers
Scaling, without failing ⛰️
Scaling up has become the magic pill that every startup seeks. Yet the definition of what scaling looks like varies, but the reality is that few succeed.
To be successful, the growth must be both sustainable and profitable, two minor details many companies miss.
Failing is never an attractive prospect. As Jan Cavelle explores, we must understand the pitfalls of sustainable scaling to avoid the prospect of failing.
Marketing and marketability — It is fool-hardy to consider a major growth spurt without an outstanding grasp of marketing strategy. The flailing around, selling anything to anyone, will continue. Marketing costs will be huge, and the return will be minuscule. Achieving profitability will take a long time and, if achieved at all, be more luck than judgment.
Systems, team, and experience — Without a robust senior team to spread the load when scaling, there will be too much weight on the founder. Many entrepreneurs glaze over at the mere thought of systems. But to grow sustainably, tasks must be continually replicable, and nothing within the company is too reliant on one individual. Get experienced management onboard.
Capital — People often assume a lack of capital and investment causes companies to fail during the scale-up process. It isn’t accurate. Otherwise, companies without investment would not have been able to scale. You need an ongoing financial strategy of raising — or making — money in time for the next step.
Timing is everything — When entrepreneurs talk about timing, they usually refer to market readiness. The reality is that the timing within your planning is just as crucial. Up to a point, you can muddle through, growing haphazardly, making money even. But to scale successfully, you need a far sharper strategy.
👉️ Read more about how to scale — and not fail.
What to know about working with freelancers
“Freelancers are running an entire business, and you’re not the only client. And if you wouldn’t pay your lawyer late, don’t pay your freelancers late.”
Freelancers can be a great marketing resource for startups. You may not need a full-time resource (yet!), so a freelancer can fill a specific need, whether it’s writing, design, or fractional strategy roles.
If you’re an entrepreneur considering hiring a freelancer, solopreneuer and freelance writer, Anna Burgess Yang has some hard-learned things to remember as you start looking for the “right fit.”
Freelance isn’t code for cheap or unemployed — A freelancer might cost less than a full-time employee, but that’s because they’re (usually) not full-time. They’re not necessarily a “cheap” resource. What you gain is flexibility: a resource for fewer hours, filling a specific need, or short-term help.
Read the freelancer’s contract carefully — Good freelancers will have deliverables clearly outlined. Read it, and read it again. It will save you a world of trouble down the line.
Freelancers will work with the information they’re given —Unless you hire an expert in your field, you need to give your freelancer specific direction if you want a specific outcome. Creating a brief feels like extra work, but it gives the freelancer the necessary context that could change the direction of the content.
Freelancers set their own schedules — Good freelancers are excellent at managing their workloads, but they juggle a lot, and they’re rarely available on demand. Either shoot for a regular cadence with deliverables or work to “Let me know when you can have this done.”
Good freelancers are on the lookout for red flags — Like good employees, good freelancers have many options. They don’t have to work with you. Be collaborative. Respect their schedule. Give them constructive feedback. View the freelancer’s work as valuable, even though they’re not a member of the team.
👉️ Learn more about working with freelancers.