Growing a business with virtually no resources. That’s the magic that some start-ups manage to do . The vast majority fail because despite trying everything, they can’t get the hang of it. startup growthPhoto rights by Fotolia Technically, what those who know how it works are able to do seems impossible. It has a lot to do with renting out rooms on the first floor of a skyscraper without having built the building. You don’t have the resources, but you have to sell . So you have to do everything at the same time. With the first income you can build the first floor and start renting out the second. I’ll give you an example to make it a little clearer what I’m talking about. At Quondos we opened the sale for the platform a month before its launch. This allowed us to finance its development with the registrations already obtained. This is also what is often called bootstrapping . Any startup without resources should follow these 3 phases to reach the sky. Contents [ hide ] 1 Generate income with your own inertia (phase 1) 2 Create a structure that frees you from operational work (phase 2) 3 Build new sources of income and/or strengthen existing ones (phase 3) Generating income with your own momentum (phase 1) With what you know, have or can achieve with your own strength, you have to be able to generate the first income. Don’t look at everything that happens in the United States. Nowadays, you have to be able to deposit euros into your account from day zero. It’s all very well attracting users and having many page views, but in the end what counts is the money to survive. What has worked best for me is the following: Launch your company with an avalanche effect to attract interest and customers from day -1. Recurring business models such as subscription . Focus on markets and products that enable attractive profit per customer. Create a structure that frees you from operational work (phase 2) Rather than revenue, you are looking for profit in the first phase. Therefore, costs have to be kept to a minimum. This typically requires that a large part of the work is done by the entrepreneur. I have been with CEOs of start-ups who even did their own quarterly VAT returns. In the first few weeks this may have to be the case, but when the first income comes in, you have to outsource tasks that take up your time to do what really matters . It’s about creating a structure with the benefits you’re getting. In the case of a skyscraper, it means that you hire workers to finish the first floor so that you can start the second. Without a stable structure, you will never be able to climb that ladder. Many start-ups struggle desperately to make a jump in sales. They often fail because they lack the structure that supports potential growth. Now the question. What happens if I don’t have enough resources to create this structure? It is a vicious circle, without a doubt, in which I and Coguan have also been trapped for years. Looking back, I would do two things differently: With the first financing, we need to go further. We have not been focused enough to really reach the income cushion needed. We must be aware of how critical this first start-up phase is for everything that follows. Close early. When you find yourself in a situation like this and you can’t get new financing, you may not be able to take the plunge on your own. You have to realize this and throw in the towel before fighting pointlessly. Building new sources of income and/or strengthening existing ones (phase 3) Show me the money . So far we are not really making money because it is being eaten up by the structure we have created. Thanks to this, you will be able to take the next step. You are no longer involved in day-to-day operations, which allows you to close strategic collaborations that allow you to increase the income of existing lines or add new ones. Everything you create has to be accompanied by a structure. This is where many people stop and don’t take the step because they prefer to put the profits in their own pockets and not in the workforce. It is totally legitimate. Some are more ambitious and seek more. In these cases, you have to take risks to discover if there is something beyond your business that allows you to achieve goals that you had not initially imagined. These three phases may sound obvious and common sense to you. If so, I totally agree with you. Now comes the most important question. Are you applying this to your own business or are you looking to increase the profit you have today without thinking about tomorrow’s growth. That is the question… It sounds easy, but it isn’t. Most startups do n’t make it to the third phase, they either die in the first phase or, with a bit of luck, reach the second phase.
