Unfortunately, more than 70% of startups fail in the scaling phase because of premature scaling. This means that they scaled too early before they had a product-market fit. If you scale without PMF, you spend a lot of resources on sales and marketing and grow your organization without having a sticky product with satisfied customers. Reaching product-market fit is, therefore, a prerequisite for starting scaling. We engaged in extensive discussions and planning on how to achieve product-market fit for startups. 

We worked on how to measure PMF and which activities helped to improve PMF during this second sprint in the scaling readiness run. We used a framework for product-market fit improvement that resonated well with participants, as well as a framework for feature request rankings, and the core segment definition framework.  

You cannot scale your sales process too early. In the first phase, founders need to do sales themselves, to understand the concerns of potential customers and their pain points. Founders need to learn from them and listen closely. As soon as they have figured out replicable sales tactics and argumentation, it is time to move from founders-led sales to scaling of sales. Translating the founders’ sales approach into sales activities that can be managed by the team and automation, involves some effort and takes time.  

The Unique Selling Proposition needs refinement over time. Startups sell their products to a variety of customer segments on a trial and error base at the beginning. After some time it is necessary to narrow down target segments into the core segment. Then it is time to finetune the Unique Selling Proposition and to sharpen it so that it exactly meets the pains and needs of this core segment. This is the work that needs to be done in the scaling preparation phase.   

There are many possibilities to automate parts of the sales process, e.g. lead sourcing, qualifying or drip campaigns, to mention a few. The target here was to build a scalable sales model.  

Evaluating your Product-Market Fit status, redefining your core segment, and developing a comprehensive go-to-market plan, including automation potential, were the primary resources needed in this sprint. 

Building on the progress of Sprint 2, the Scaling Readiness Run now turns to securing financial readiness in Sprint 3: Funding. This sprint will guide startups in crafting a clear funding path, managing their cap table, and refining their valuations using methods like the Venture Capital and First Chicago. Additionally, it will focus on setting financial KPIs to support strategic decision-making and attract investors. Stay tuned as we continue empowering startups to scale sustainably!