“When to scale?” and “How fast?”
These two questions are mission-critical for startup organizations. Yet, as entrepreneurs, we lack a rigorous approach to answering them.
The “Science of Scaling” provides a scientific, data-driven approach to uncovering answers to these critical questions. After peering inside the go-to-market machinery of hundreds of startups over the last three years, Stage 2 Capital Managing Partner Mark Roberge found the following five issues as the most common diagnoses for failed scale attempts:
• Premature focus on top-line revenue generation in lieu of consistent customer value creation;
• Inadequate, non-data-driven definition of product-market-fit;
• Misunderstanding of go-to-market capabilities needed before hiring salespeople;
• Front-loading sales hires at the beginning of the year rather than pacing throughout the year; and
• Confusing temporary competitive advantage with a sustainable competitive advantage.
The resulting Science of Scaling approach has been the bedrock of Stage 2 Capital’s method in guiding entrepreneurs and their new ventures through the scaling process. The Science of Scaling defines each stage of scale, establishes quantifiable measures for each stage, structures the sequence and signals of when to move from one stage to the next, and explores the optimal go-to-market design of each stage.
Mark Roberge is Managing Director at Stage 2 Capital, the first venture capital firm run and backed by heads of sales and marketing. He is also a Senior Lecturer at the Harvard Business School where he teaches courses on sales, marketing, and entrepreneurship. Prior to these roles, Mark served as SVP of Global Sales and Services at HubSpot where he scaled annualized revenue from $0 to $100 million and expanded his team from 1 to 450 employees. Mark has an MBA from MIT Sloan.
You can sign up for Mark’s eBook, “The Science of Scaling,” here: https://blog.stage2.capital/science-of-scaling