Building a Startup From The Ground Up

Learn how Chiefly Consultants helped a fast-growing technology company to thrive with the right systems and processes.

Key takeaways:

• Startups in the tech industry grow very quickly
• Some common problems arise for fast-growing startups 
• Chiefly Consultants can help a fast-growing tech startup navigate through growth and change

Did your company start experiencing the fast growth you’ve always hoped for, only to realize you can’t keep up? You’re not alone – but you’re right to be concerned. According to a joint study by Inc. Magazine and the Kauffman Foundation, approximately two-thirds of the fastest-growing companies fail to reach the final stage of enterprise maturity – self-sustainability. For the most part, fast-growth businesses end up being disadvantageously sold, going out of business, or shrinking in size. Why is this the case? For starters, a larger scale increases operational complexity and overhead costs. It also introduces unforeseen variables that can spell trouble without the right processes and systems in place. So, how do you build a company from the ground up and make it sustainable? Preparation and experience. Evaluating all that could go wrong and planning around it positions you for the best outcome – in both the short and long term. Similarly, partnering with someone experienced in managing growth can help you navigate change, avoid pitfalls, and quickly pivot when necessary. Below, we look at how tech startups grow exponentially, the everyday challenges they face, and how Chiefly Consultants steps in to help.

How startups in the tech industry grow exponentially

The development speed has significantly improved over the last few years, making it easier to bring products to market. What may have taken 8 years to build and sell 5 years ago might be possible in 2 years today. Similarly, improved connectivity, instant communications, social media, and better infrastructure and delivery systems mean that consumers can adopt new technologies, products, and services faster than ever before. Because fast-growing startups in the tech industry utilize exponential rather than linear growth, it’s easy for compounding demand to overwhelm your business’s capacity if you scale too fast.

Common challenges fast-growing companies face

Maintaining your business’s financial health is the most obvious challenge of fast growth. Without proper planning, scaling up can quickly strain your cash flow, leaving little room to maneuver.  Additionally, you’ll need new hires to keep up with the increased demand. Things can quickly backfire if you rush to fill positions or pick candidates that aren’t ideal for your company’s growth period. There is also the danger of a decrease in customer satisfaction–which can be fatal. As your customer base grows, keeping up with their needs and maintaining personal relationships with them becomes increasingly difficult. In these situations, it’s always beneficial to have an experienced partner leading the way – which is where Chiefly Consultants comes in.

How Chiefly Consultants helped a fast-growing tech startup navigate through change

A technology company was recently experiencing massive growth without systems and processes to keep up. So, it turned to Chiefly Consultants to help manage key business functions more effectively: administration, human resources, finance, and sales and marketing. Here’s how we delivered:

-Administration

Documenting policies and procedures was a crucial first step to managing growth. It provided a mechanism to hold employees accountable, bring uniformity to operations, reduce the risk of unwanted events, and help the business achieve its objectives more efficiently. With the policies and procedures in writing, employees now had a point of reference that clarified how they were supposed to go about their daily routines (including acceptable and unacceptable behavior), where to turn for help, and address grievances at the workplace. In addition, our Chiefs of Staff introduced weekly team meetings and all-hands assemblies to improve camaraderie among team members, discuss the expectations for the week, answer any questions employees may have about their tasks, keep them updated on the company’s activities, and address challenges and performance issues as soon as possible.

-Human Resources

Every company needs role-outcome profiles. Without them, it can be difficult for employees to understand the company’s expectations, leaving them guessing and less engaged at work.  Roles define what employees should do, while outcomes set the tone for what they should produce from their job roles. Combined, they communicate what you expect from current and future employees, helping you attract highly driven candidates and filter out those lacking your company’s drive, ambition, or result-oriented approach. Although the technology company had registered impressive growth, it didn’t have an active role and outcome statement for employees, which was bound to cause inefficiencies at some point.  Chiefly Consultants stepped in by creating comprehensive role-outcome profiles summarizing the value employees would bring to the organization, what they should do, and how their individual contributions fit into the bigger picture. We started by defining desirable outcomes for the company, then condensed them into a cohesive, streamlined role statement that captured the expected results. From there, our Chiefs of Staff helped the company clarify the excellent performance of each outcome. They developed metrics to measure the progress of outcomes so that employees understood what to aim for and when they had achieved it.  However, there was autonomy as to how employees would pursue goals. We allowed them to plan the route to the outcome to keep them more engaged and foster creativity within the organization. Overall, the process was a success – it matched the company with the right candidates, provided unity of direction, and maximized employee productivity. Tracking critical KPIs enabled the company to offer more objective feedback for improvement, identify employees consistently hitting their targets, and be ready to take on more prominent roles. Beyond eliminating the ambiguity surrounding company expectations and job roles, maintaining accurate financial records was also crucial during expansion.

-Finance

Chiefly Consultants liaised with bookkeepers and taxation specialists for each month’s-end close to keep a bird’s eye view of the company’s financial health and make the year-end tax filing smoother.  Proper review and reconciliation of financial documents at each month’s-end close kept all accounting errors at bay while shedding light on the company’s cash flow scenario. It ensured accurate tracking of financial KPIs and often provided actionable insights for improving the company’s financial position. In addition, it made filing end-year reports less tedious and daunting. Instead of scrambling for invoices, receipts, or other missing paperwork at the last minute, all information was organized efficiently in time for year-end tax filing.

-Sales and Marketing

Chiefly consultants managed an extensive specialist research project to gather intelligence for framing and implementing effective sales and marketing strategies. This included studying the company’s sales force’s effectiveness and performance relative to similar companies, exploring the best distribution channels, and identifying marketing opportunities for new and existing products. With Chiefly Consultants managing these critical areas, the technology company could set and achieve strategic goals, drive its bottom line, benefit from new opportunities, and pivot to accommodate growth. Moreover, the CEO got free from administrative loops, micromanagement, and other delegable tasks and could now focus more on product development.

Put your best foot forward with Chiefly Consultants

Whether you’re looking to streamline administration, human resources, technology, finance, or sales and marketing, Chiefly Consultants can help you lead the way. Schedule a free consultation, and one of our Chiefs of Staff will get in touch to discuss how we can help you manage growth to become self-sustainable.