If you run a tech company, you will understand how important it is to scale. While this is true of all companies, the tech industry is particularly well-suited to rapid growth because of the relatively low overhead costs when you first start the business.
Thanks to the proliferation of technology, specialized information, and skill sets, it is relatively inexpensive for you to develop your tech product or service in the first place. Whether you are creating an app from scratch or offering to help other companies with a certain area of tech support, you are likely going to find it cheaper to grow faster.
What’s more, in the tech world, there is the strong pull of the network effect. Metcalfe’s Law (where the value of a network is proportional to the number of network users squared) dictates that the dominant force in a certain tech niche is likely to dominate overwhelmingly – thanks to the perceived strength of their network.
However, this doesn’t mean that scaling a tech company is automatically easy. To unlock the full potential of your tech firm, you need to consider a few key factors.
This is what you need to know about scaling a tech company quickly:
Outsource your tech services
One of the best ways to help your tech company scale quickly is to outsource as many of your tech services or tasks as possible.
Often, the reason why businesses struggle to grow is that they struggle to recruit enough employees fast enough and fail to deliver on what they promised their customers. What’s more, hiring a vast team of tech specialists is never cheap, and the ensuing overhead costs may cripple your business before you’ve even got started.
A tried-and-tested solution for this is to outsource certain tech tasks to external specialists like Cedar Bay.
This will ensure that key tasks are completed when they are needed, at a scale of your choosing. It frees your internal team up to concentrate on other jobs and eliminates the fear that your team cannot handle your client’s demands.
Focus on one product
Another great tip for scaling your tech company quickly is to focus on one product or service at a time. This is especially crucial if you are a small business or start-up with limited resources and a small team.
It can be easy to become focused solely on attracting as many customers as possible from a wide-ranging market to improve your customer acquisition rate. However, this may be a false economy.
By distracting yourself from making one product or service as good as it possibly can be, you will dilute your brand and lower your client retention rate. What’s more, you will stretch your resources thinly and make less of an impact as a company in the market.
Instead, it is wise to associate your brand image with a particular service, which attracts a smaller but more engaged customer base. Not only is this likely more profitable at first, but it will allow you to better control your resources – thereby helping you grow faster.
Hit your competitor’s weak points
If you are struggling to grow, then the problem is likely to be due to a lack of customer awareness or trust.
When there are countless larger and more established businesses offering similar products or services, it takes a brave customer to give you a chance instead.
To counteract this, target your competitor’s weak spots. If they are a large corporation, then market yourself as a boutique business that gives each customer a personal service.