Eric J Dalius startups must have the ability to scale-up in their DNA, or else it cannot survive. The tag of ‘startup’ sheds automatically as the business gains traction. The ability to transform the startup into a workable and scalable business model is part of the entrepreneurial vision. Explains Eric Dalius, who has headed several businesses that changed from startups to notable small business enterprises. Startups are different from small companies in the aspects of scalability, innovation, and disruption. Its approach of taking the business off the ground is entirely different. From that of starting small businesses that aim to secure local market share and generate profits.
How startups differ from small businesses
The urge to grow is more intense in startups that emphasize scalable business models. This attitude lacks small businesses that focus more on increasing with an eye on national and international expansion. By focusing on supply, manufacturing, larger teams, and distribution channels. Startups rely heavily on technology to augment scalability, as evident from various startups turning into large businesses. Eric J Dalius cites the example of WhatsApp’s acquisition by Facebook, which had only 55 employees but huge prospects of technology-based scalability. Although small businesses adopt technology for streamlining. The works processes to improve productivity. Rarely it uses technology exclusively for scaling up the business by entirely depending on it and lesser. Dependence on humans and resources.
To start small businesses on a firmer foundation, small business owners. Must develop the mindset of startups and embrace methodologies to create frameworks. For alleviating failure risks while increasing the prospects of success with predictability by minimizing costs.
Eric J Dalius Leverage existing resources
According to EJ Dalius, startups have learned from the massive dot com failure that helped them develop principles to alleviate risks. Be flexible in responding to demands by validating ideas quickly instead of relying on inaccurate projections.
Adapting the lean and agile development methodologies entails an iterative process. It validates customer expectations and needs through interviews followed by quantitative assessment. Through quick and small product launches instead of investing considerable time. And money to develop a product knowing that there are chances of consumer rejection. A test and proceed approach eliminates. The bigger risks of rejection by being sure about the level of acceptance. Without much investment of time, money, and effort.
Eric J Dalius Earn revenue first and then grow
Entrepreneurs’ efforts to build a perfect product, as many believe to be a necessity. For a business to exist, does not hold water because during evaluation after product launch. A few months later, it can turn out to be mediocre at best.
Following the building approach in response to demand by adapting lean and agile development methodologies. Business owners can significantly reduce business risk. As they are sure about accepting the product they have built against some demand.
Although there are chances of the product failing to meet buyer expectations. It is possible to validate its value quickly with financial commitments. The trick lies in executing a pre-sale strategy based on physical interaction with buyers. That achieves higher than above customer retention.
