In our recent event on Growing Revenues and Expanding Efficiently, Abhishek Chatterjee, founder and CEO of Tookitaki, shared invaluable insights learned from his experience scaling his company.
Startup growth is a dynamic journey that requires different strategies at different stages. However, certain principles remain constant, such as profitability, financial discipline, and the critical decision of when to seek venture capital. Let's delve into the top takeaways from his talk.
Top 3 Things to Avoid When Scaling Your Company
1. Artificially Enlarging the Team
One common misconception is that expanding the team and broadening the target market will automatically attract more venture capital investment and improve unit economics. In reality, this strategy can decelerate growth as companies struggle to customize their product for different segments. Chatterjee advises narrowing the focus to achieve genuine revenue growth. Consider hiring fractional experts for specific needs or executing projects with platforms like Wizly for more flexibility. Wizly offers a plug-and-play solution for this.
2. Avoid Overemphasis on Market Size
While a massive market may seem enticing, don't fixate on its size. Instead, focus on a smaller, more manageable niche and double down on it. This approach allows for a concentrated effort and better utilization of case studies, which can be instrumental in attracting investors and customers alike.
3. Lack of Decision-Making Framework
Create clear decision-making processes, especially for founders and executives. Document decision-making frameworks and principles to ensure that second-level leaders understand and follow a structured approach to decision-making. This fosters alignment within the company and helps streamline growth.
Top 4 Things to Consider When Entering a New Market
1. Don't Use New Markets to Cover Losses
Expanding into a new market should not be seen as a band-aid solution for losses in an existing one. It's crucial to address issues in your current market before venturing into new ones. Ensure a solid foundation before entering a new market like getting someone familiar with the local market and domain to give you insights and know-how.
2. Leverage Existing Relationships
Leveraging existing relationships and partnerships from your current market can be invaluable when entering a new one. These relationships can help navigate cultural nuances and business differences, providing a smoother entry into unfamiliar territory.
3. Local Partnerships Are Crucial
Having the right local partners is vital when entering a new market. They can assist in understanding local dynamics, regulations, and cultural sensitivities, especially in diverse regions like Asia. Local expertise is often the key to success in unfamiliar markets.
4. Total Commitment
Entering a new market requires full commitment and allocation of the necessary resources. Your startup is likely unknown in the new market, and building a presence will demand significant effort and investment. Be prepared to go all in.
Adapting an Iterative Mindset
Chatterjee emphasizes that startups must adopt an iterative mindset that evolves with different phases:
1. Different Phases Require Different Approaches
The startup journey comprises distinct phases, including experimentation, achieving product-market fit, and scaling for growth. Each phase demands a specific approach. From "doers" in the experimentation phase to specialized expertise during growth, adaptability is key.
2. Profitability and Sustainable Growth
Profitability and financial discipline are critical. Streamlining your company and focusing on profitability stress-tests various aspects of your business, ultimately leading to product-market fit. Taking on venture capital comes with pressure and expectations for hypergrowth, which may not always align with the best interests of the business.
3. Timing of Venture Capital
Carefully consider when to seek venture capital, as it entails external pressure and influence. Evaluate whether it aligns with your company's goals and needs. Don't rush into it; make a strategic decision.
Abhishek Chatterjee's insights shed light on the complex path of startup growth. The journey is dynamic, and success hinges on adaptability, clear decision-making, and a focus on profitability. Whether you're scaling your company or entering new markets, these principles can guide you toward sustainable growth and success in the ever-evolving startup landscape.
The following insights were extracted from a panel discussion Wizly hosted with Enterprise Singapore with Abhishek Chatterjee, Founder & CEO of Tookitaki, Gene Yu, Founder & CEO of Blackpanda and Puja Bharwani, Co-founder & CMO of Wizly
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