How Startups Grow Their Revenue Beyond Their Resources

Are you turning a little into a lot? And is that showing up in your bottom line?

The return needs to be more than the sum of the parts

When you’re a startup or a young company, you need a larger-than-normal multiplier of revenue return on your resources.

Organizational structure is more than just titles and a flow chart

Most of us entrepreneurs and company leaders strive for this dream state — having enough internal “supply” to meet the demand we have today and generate profit, which equals runway.

Early Stage to Growth Stage

I don’t want to focus too much on the early stage, but I do want to talk about the dramatic organizational shifts necessary to emerge from the early stages into a full-fledged growth stage startup.

The growth stage grind

As a company merges onto the growth stage highway, everything accelerates and things happen quickly. At this point, roles and functions should be more one-to-one and logical. But now, inter-functional dependencies will arise and will add complexities that will quickly drain any extra capacity.

  • A broader reach: To keep that steady stream of customers, new markets will need to be targeted. This means that marketing, sales, and product development will all need to come together to give new customers a reason to buy without alienating current customers.
  • Partnerships, referrals, and bulk sales programs: One-off sales are great, but group sales are better. It doesn’t matter if you’re B2B or B2C, whether you’re selling a product or a service. All the components of your company need to have an arm that focuses on bigger fish — whether that’s through the combined efforts of a partnership, a distributed customer referral effort, or even just an expansion of how many units you can offer to one customer.
  • Reinvestment in the company: In the growth stage, each part of the organization will be screaming for more help in terms of redistributing profits to aid and enable more growth. Unless those parts are working in a coordinated manner, any reinvestment will boost the output of certain departments at the expense of others.

Pivot: Starting all over again

Companies pivot for many reasons. Some of them are proactive, such as when an opportunity presents itself but requires a major shift in the business model. Some pivots are reactive, like when external forces (or internal peril) drive the company to reset how its resources are positioned.

I’m a multi-exit, multi-failure entrepreneur. Sold ExitEvent. Building TeachingStartup.com & GetSpiffy. Former Automated Insights. More info at joeprocopio.com

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store