How to Scale Up Your Startup? Challenges & Tips to Overcome


You’ve launched a successful startup. What next? Now is the time to scale. However, startups frequently find themselves unable to move to the next stage.

According to the Startup Genome Report, up to 90% of all startups fail because they try to scale too quickly. You risk a lot if you make a mistake and start scaling a startup before you’re ready; you risk a lot.

So, ask yourself, “Is your project ready to scale?”

If yes, scaling a startup entails setting up the company’s future growth. It refers to a company’s ability to expand without being stifled by operational requirements and tenets. 

It isn’t going to be easy! Planning, finance, proper systems, a well-chosen team, focused processes, current technology support, and reliable IT outsourcing partners are all required. If you don’t map the scaling process correctly, you may have challenges.

What is the Startup Scale?

Startup scaling refers to growth in operations, reach, and potentially revenue.

Usually, a scaling startup has already completed the growth stage and is ready to expand its client base or income without incurring significant extra costs.

For instance, suppose you own a store that serves ten people every day. However, if you’re ready to scale your startup, you can manage 1000 customers tomorrow without much work.

That said, 1000 customers will most likely overwhelm your business; you must first build such a shop.

When Should You Consider Scaling Up Your Business?

The appeal of scaling is undeniable: similar resources, more significant profit.

On the other hand, premature scaling might lead to financial stress and catastrophe.

70% of startups grow too quickly. And 93% of those businesses never make more than $100,000 every month.

Three crucial checkpoints telling when you’re ready for the scaling process—

  • When you have a good customer base trusting your product or services.
  • When you have accomplished all your previous business goals.
  • When your business starts generating more ROI, you start earning profit.

Quick Plug: Netsmartz helps early startups grow through pre-seed investment and offers development services to build on a suitable business model. Our tech experts aim at fostering growth and innovation with a focus on modern technology. We believe in working the extra mile in achieving goals to bring that “A-ha” moment for every startup.

Challenges Faced By Startup while Scaling Up

It’s not easy to start a lucrative small business. It’s full of difficulties and unknown variables. Knowing what you’ll face along the way will assist you in navigating the problems that will inevitably arise:

1. Creating a Business Concept

Everything begins with a good business concept, which is the foundation of any successful company. However, a strong concept must be backed up with thorough market research, which is not an easy undertaking.

You must have the bravery to think beyond the box and then put your ideas into action. The majority of people are content with the status quo, but entrepreneurs question it.

2. Putting Together a Team

If you don’t have a team, you won’t turn your idea into a reality. Putting together a team does not imply simply hiring people and calling it a day. You must discover people who share your vision and are willing to resist the market’s ebbs and flows.

The only way to scale a brilliant idea is to have a lot of money. You’ll need to hire a dedicated remote team that is invested in your idea.

3. Selecting an Appropriate Business Location

If your business has a physical store or facility, selecting a site close to your target market and clients is critical. Additional obstacles include selecting a location with excellent connections, employee amenities, and technology advancement.

4. Capital Raising

You’ll need to raise money to scale your company after you’ve validated your idea and built a core team. Pitching your idea and vision to investors eager to invest in your company. You must also present your team, as they will be doing all the work.

It is a challenging game to play; you must pitch your ideas repeatedly until you earn a yes—you must establish that your proposal is worthwhile.

5. Competitor Management

As you start your firm, the next obstacle you’ll confront is rising above the competition. Competition can be a motivation to invent and create a benchmark.

When you enter a new market, you may notice several fantastic products currently on the market. Then it’ll be a creative challenge for you to think beyond the box and stand out.

The Tips: How to Overcome Challenges

Here are some of the useful tips to get you started on your entrepreneurial journey:

1. Recognizing Your Starting Point

Everyone starts at a different time in their lives. You must assess the current state of your launchpad. Discover your genuine motive for starting a business by determining “why” you desire to do so. Also, figure out how much money you’re willing to put at risk to start your project. Consider the following questions:

  • What are you ready to offer to achieve your business goal?
  • How many hours per week can you dedicate to your project daily?
  • What is the extent to which you are willing to step outside of your comfort zone?
  • What is the extent to which your family will accompany you?

It’s simple to imagine yourself running a million-dollar company. However, it takes courage and dedication to make it happen. Before starting a business, make sure you assess your values.

2. Choosing the Right Business Niche

Find a micro-need (niche) in high demand, satisfy it, and profit from it. It’s critical to choose a specialization because you’ll easily comprehend and meet demand. There are three approaches businesses can follow:

  • Capitalize Trends: Look into the product categories that are popping up all over the place. Then, fill the gap in its characteristics or offer a more valuable product. After that, turn it into a company.
  • Improve & Research Existing Products: Investigate current competitors and determine their lack. Then look at customer reviews to see if there’s a potential flaw.
  • Investigate Your Interests: Determine whether you can create goods based on your interest or whether they can solve real-world problems.

3. Determining and Building on the Market’s Requirements

Due to a lack of market demand, 42% of startups fail. People starting their first business assume that if they enjoy the product, others would as well. On the other hand, customers see your goods as just another name. Don’t assume your product will find a market. Instead, examine the market to validate your ideas (customers and competitors).

Promote your product to ideal prospects and see if they find it useful. Ask individuals (not just relatives and friends) if they’d be willing to pay for your service or product.

4. Knowing your Competitors

Examine how your most successful competitors grew their market share, including the techniques they used and any setbacks they had. By studying its business model and strategies, you may position your own startup for success.

5. Starting by Going Lean into narrow niches

Start a lean business instead of going all in and going bankrupt. If you’ve identified a viable market, don’t put all your eggs in one basket and hope for the best.

Rather, build a minimum viable product (MVP) and begin marketing it to clients. Then take advantage of customer comments and questions to change your product.

This further helps startups ascertain the market response – on a new feature, on a new iteration, or on a new venture. MVP also lets you tinker around like in a sandbox and mull over the potential features and functionality you have to consider while scaling up.

6. Know how to run a business

It’s just half the job to come up with an idea, produce a product, and decide to sell it. You must learn and grasp business operations since they propel the company ahead. If you’re selling shoes, you must determine:

  • What approach will be used to deliver the product?
  • How about the storage options?
  • Will there be a need for a customer success team?
  • What all payment modes are you going to accept?
  • Will you send invoices to your customers?
  • Who will check to see if you’ve been paid?
  • Who will build & manage your website or social media channels?

On the same note, you need to understand the

  1. Functionality of your software product
  2. The target audience and the market
  3. The premise of the problem you’re trying to solve
  4. Features of the product
  5. User experience and interface that must drive the product
  6. The skill, time and budget required to scale that product
  7. The team that is going to help you scale or build the product

and so on. There’s a bevy of such aspects that you’d need to consider.

Even if you have a small firm, you must examine the processes that will be required to ensure that each department runs well.

7. Iterate on Your Mistakes

Don’t let your mistakes demotivate you. Even skilled business people make errors when they initially start. If something doesn’t work or your decision turns out to be incorrect, it’s the ideal time to learn from it.

Businesses are full of ups and downs, which adds to the excitement. So, if you fail, figure out what went wrong, make corrections, and move on.

8. Hire the Best Dedicated Team

You need to hire a team of a dedicated workforce if you are looking for a successful and profitable startup. It’s unhelpful to try to do everything on your own. Hire a team that specializes in the services you require.

Delegate their responsibilities and align them with the company’s goals. As a result, you’ll have more time to focus on essential matters like business expansion and collaborations.

Quick plug here: Netsmartz has been helping organizations scale their IT operations since 1999. Helping firms hire and build a dedicated development team or hire remote developers on-demand.

9. Concentrate on Marketing and Outreach

Build a product, but don’t expect buyers to appear—they won’t. You must constantly promote your product, position, and find innovative ways to present it to customers. You can begin by creating a website with a captivating landing page.

Successful small businesses use different means but careful – it all turns out to be the seamlessness of your product that retains or annoys customers and prospects.

To Wrap Up

Scaling your business can be difficult, risky, and even frightening at times. But, sooner or later, your business will go through this. All you need to know is when your company is ready to grow.

To begin, answer the following questions on your own:

  • Do you have a good clientele?
  • Have you met your previous business goals?
  • Do you have a consistent cash flow?
  • Is your concept and infrastructure up to the task?
  • Is your team up to the requirements?

Once you’ve answered all of the questions, you’re ready to grow, or rather Scale your company. Stick to your plans, and remember that you’re not alone.

And if you’re ever keen to just get started, we’re letting you know that for the last two decades, Netsmartz has been developing and assisting startups in growing and scaling their software and operations.

Just a quick plug we’re throwing out there

Still, have any questions about how to scale your startup or software business?

Please get in touch with us to schedule a consultation.


How to Scale Up Your Startup? Challenges & Tips to Overcome
Anup Mehrotra
Published on
March 30, 2022

Kickstart Your Project With Us!


Let's Build Your Agile Team.

Experience Netsmartz for 40 hours - No Cost, No Obligation.
Connect With Us Today!

Please fill out the form or send us an email to