Scale
niklas kaikonenYou’ve validated a working business model, identified a powerful growth engine, and secured funding to grow the business. Very few companies get to this point, and for those who do, it typically takes around two years to get here.
Scaling
In the scaling stage, the validated business model is executed at full speed. There’s no room for braking now—you’ve proven that every element of the business model works. With a functioning growth engine, growth becomes sustainable, and the money invested pays for itself. Your focus and resources shift from building the perfect product to distributing it to a wide customer base.
The leap from early adopters to the mainstream market may require fine-tuning your product to meet the needs of a broader audience. This is why the Build–Measure–Learn feedback loop continues even during scaling—customer-driven development remains a constant process.
What’s Next?
During scaling, the doors to new markets are wide open. Expansion into these markets can be fueled by raising additional funding. However, at some point, the focus will shift from pure growth to profitability. This is when a startup becomes a mature organization, and the term “startup” no longer applies.
At the same time, the founders’ roles may change. The CEO may be required to have skills that no longer align with the founders’ strengths. This is a natural point to transition into other roles, such as strategic planning or product development. For some, the end of the scaling stage may also be the right moment to exit and transfer ownership to new hands.
📖 Learn more:
The Lean Startup pp.206-223
Running Lean pp. 291-304