How to grow a startup company: 22 tips 

Discover proven strategies that fast-growing tech teams use to scale. Learn the challenges growing startups face when launching and how to leverage their lessons to sustain rapid growth. 

Launching a startup can be challenging, but it’s rewarding. Many well-known worldwide brands came from humble roots as small startups. 

Any entrepreneur who wants their startup to be the next big launch should read our guide on how to grow a startup company below. We’ll detail proven startup company tips and highlight growth strategies informed by real-world experiences.  

Tips for growing your startup company 

Building a startup has always involved a blend of learning by doing and seeking guidance. And, while entrepreneurship has always required a leap of faith, the resources and support systems available today are far greater than in the past. 

Now, with entrepreneurship concentrations popping up on college campuses, access to structured learning is increasing. But even with these programs, real-world experience reigns supreme. We’d be willing to bet that most successful entrepreneurs would tell you that experience is still the best teacher. 

For that reason, we’ve compiled these startup company growth tips. Explore this guide for actionable advice and insights you can apply to your startup. 

1. Don’t underestimate timing 

Some experts believe timing is just as important as funding or the novelty of your idea. Conduct market research to assess the condition of your industry and the economy at the time of launch.  

Information is key, so gather as much as possible and talk with mentors who have been where you want to go whenever possible. Refusing to wait for the right moment or letting the perfect moment pass can ground your mission before it starts.  

2. Ensure you have a strong product 

Not having a great product makes getting funding or gaining a customer base challenging. Ensure your product or service is well-designed, high-quality, and easily scalable with demand. If you’re reinventing something that already exists, exhaustively research competitors’ versions and see what you can improve upon. If there isn’t a market for your product yet, conduct surveys or focus groups to see what your target audience wants in a product or service like the one you’re bringing to the market.    

3. Hire the right people  

Collaboration is the backbone of a successful launch, so make sure you have a stellar support system around you. Seek individuals who collectively bring a diverse range of skills, experiences, and perspectives. A team with diverse strengths is better equipped to tackle challenges, innovate, and make well-rounded decisions. 

4. Understand your market 

Before launching, gain a deep understanding of your target customer base and your competition. Customer avatars, surveys, focus groups, and internet research are great ways to see your market through the eyes of your ideal customer. Above all, identify whether there’s a need for your product and room for growth before you invest too much time, energy, and money.  

5. Identify funding 

Most startups raise funding from other sources, but your own finances can be a great place to start. Take stock of what financing you and other stakeholders have available from personal accounts, credit cards, and friends or family. From there, if personal resources aren’t enough, consider outside sources, like bank loans, fundraising, or crowdfunding.  

6. Build customer empathy 

Learn how to speak your customers’ “language.” Think about where your customers are most likely to hang out on the web and go there. See what your target audience says and adjust your product, operations, or message accordingly. In general, being more empathetic means walking a mile in someone else’s shoes. It’s no different when building a startup, so take the time and effort to view the world from the perspective of your customers.  

7. Run experiments  

At the start, you may have some opinions or assumptions about how your audience behaves. But you can’t build your business on assumptions. Smart startup teams run rapid experiments to test their value proposition with their audience. This data-driven approach will help you make informed decisions, avoid costly mistakes, and build a product that lands with your target customers. Experiments you can run include: 

• Focus groups and surveys: These offer qualitative insights into how potential customers perceive your product and its value proposition. And you’ll learn more about your target audience’s demographics, preferences, and unique pain points. 
• A/B testing: A/B tests: Experiment with different approaches and A/B test them. This will help you identify the features, design elements, and functionalities that deliver the most value. 
• Prototyping and user testing: Develop product prototypes and conduct user testing to gather feedback on usability, features, and the overall user experience. 

8. Be flexible 

Flexibility is a must for any startup venture. It enables you to quickly adapt to new information, customer feedback, and market shifts. And that can be the difference between pouncing on an emerging opportunity or being left behind.  

Staying agile helps startups switch up strategies when opportunity strikes. That might mean reallocating resources or even overhauling the entire business model if necessary. Not to mention, it lends to a culture of innovation and constant learning—two must-haves for building a sustainable business that thrives in the face of change. 

9. Build strong relationships 

Part of the magic of collaboration happens when you connect with different people and form genuine relationships while growing startups. A fresh perspective from the right partnership can help you work through questions and learn from each other’s diverse experiences.  

Focus on building a web of quality people and relationships around you. Shared connections can take you to the next level and build a library of contacts available for collaboration whenever necessary. Of course, this works both ways—also give back when you can. 

10. Find mentors 

Established companies in your industry can be a great source of mentors. They sometimes run events that allow young entrepreneurs to pick the brains of longtime business owners for startup growth tips.  

Experienced mentors can offer insights, connections, and advice that accelerate your growth. It might even open doors to new opportunities or partnerships you wouldn’t have obtained otherwise. 

11. Optimize your operations 

Operational efficiencies help lower costs. Your workplace culture should support tools that empower efficiency. An efficiency-first mindset can maximize business opportunities and sustain business growth. Implementing a scorecard of key performance indicators (KPIs) you can track, analyze, and improve is a great way to boost efficiency, accountability, and company growth.   

12. Target the right clients 

Not all clients may fit your business model. If you’re marketing and selling to clients who don’t have enough of a need for your product or service, you may do a lot of hard work for nothing—making it nearly impossible to sustain growth. The right clients will keep acquisition costs low and help foster positive client relationships. To find the right clients, conduct market research and explore your niche. It’s also helpful to build out customer personas.   

13. Embrace collaboration 

Lean on your team for help reaching goals and generating ideas for the business’s future. Operating with everyone’s best interest at heart ensures a positive experience for the entire team. Sustainable growth isn’t a solo effort. Entrepreneurs must embrace collaboration, risk, and diverse thought to reach the levels they envision for their business.   

14. Prioritize strong leadership 

Great leaders have certain qualities, like instinctual decision-making, an ability to thrive under pressure, and a long-term vision to guide the business’s future. They also tend to remain optimistic even in challenging times. 

Fortunately, leadership can be learned. You can access some of the greatest leadership mentors in the world (for a fraction of the cost) in the pages of a book. You’ve probably heard that leaders are readers, but leaders are also learners. Embrace a healthy curiosity and thirst for knowledge to develop your leadership skills. 

15. Disrupt your industry 

Don’t be afraid to take risks and do things differently. If you or your team say things like, “But we’ve always done it this way,” stop in your tracks. It’s critical to get to the core of processes and philosophies, challenge them, and consider alternative ways of doing things. 

Just because it’s the way it’s always been done doesn’t mean it’s the best way. If it makes sense to turn an old process on its head, do it. If you’re doing something different than anyone else in your industry, you might just be on the right track.  

16. Stay in tune with the markets 

Consistently research your marketplace and keep ahead of the latest news and trends. Staying in the know helps you make smart moves in the face of changing markets or shifting buyer behavior. Lean on a variety of sources, such as industry publications, market research reports, competitor websites, customer feedback, and social media listening tools, to keep tabs on industry happenings. 

17. Leverage technology 

Marketing technology and AI platforms can help you leverage automation to stay ahead of your competition. Your IT and marketing teams should collaborate to see which platforms help you optimize every customer lead that enters the system.  

Proper automation can streamline your operations and allow your team to do what they do best. Identify mundane tasks in your workflows and outsource them to technology. Not only does this save you time, but it also reduces the potential for human error.  

18. Build marketing and sales skill sets 

Marketing and sales expertise helps tech startups amplify their brands. This enables you to attract the funding, talent, and customers you need. Seek out books, courses, and other resources that build on marketing and sales skills.  

Once you have a foundation, work on creating sales scripts and repeatable sales processes your internal team can follow. Laying this groundwork may take a lot of work and iteration upfront, but it will supercharge your scaling once you iron out the wrinkles.   

19. Manage cash flow wisely 

Starting a company can be expensive. Startups that don’t track their expenses closely can burn through cash reserves quickly. Using platforms like QuickBooks can help you keep tabs on basic business financial metrics, like profit and loss (P&L), profitability, and cash flow. Exploring additional fundraising avenues is another possibility to keep liquidity high, but it requires you to lean on relationships or sales and networking skills.    

20. Know when—or when not—to scale 

Scaling can be problematic since many startups begin lean without much overhead expense. Invest as much as you can back into your business at the beginning. This is a good time to ask mentors for guidance on your early hires. Look at what tasks take up too much of your time or steer your focus away from growing the business. Constantly ask yourself, “What is the best use of my time to grow the business?” 

As time passes, you’ll need to invest in team members and infrastructure to scale up the business. This, in turn, drives up costs, so startups may need to reconsider their pricing strategies as they grow to remain profitable.   

21. Prioritize building a strong culture 

As your team grows, it might be challenging to maintain the same beliefs and values among all team members. Clearly state your company’s mission, vision, and values from the beginning. Treat them as the lighthouse guiding your ship. If you already have a team when you form these founding principles, involve them in the process. They’ll be much more invested in a culture if they have a hand in creating it.   

22. Understand regulatory compliance 

As startups expand, so will their regulatory and compliance obligations. Ensure your company complies with all relevant laws, rules, and regulations. If necessary, seek legal counsel from an attorney. Growth may invite scrutiny from investors, the media, and your customers. It’s best to consult a professional, educate yourself, and get ahead of potential issues.   

Putting tips into practice: A case study 

In 2021, Otis AI joined seven other startups to work with Intuit Innovation Catalyst (IC) coaches and leaders from Intuit and Highline Beta as part of the inaugural Intuit Prosperity Accelerator cohort.  

ICs are employees trained in design thinking who uncover customer problems and develop innovative solutions to create, invent, and look for new and better ways to improve customers’ lives. Each startup was paired with dedicated ICs who provided startup growth tips based on Intuit’s Design for Delight (D4D) innovation framework.    

Clarence Williams, co-founder of Otis AI, has always had an appetite for building simple solutions to rival those used by larger companies. In that spirit, Otis AI’s mission was to create an AI-powered app that allows anyone to launch data-driven digital ad campaigns on platforms like Facebook, Instagram, and Google within minutes.  

Ultimately, Otis AI also created a new product offering from the work they did with Intuit ICs. And the Otis AI team continues to grow. The organization has started partnerships with Intuit QuickBooks, Olo, and GoSite—just to name a few. The future can never be determined, but having grown from their valuable experience in the program, Otis AI is moving forward with excitement and anticipation of the many more achievements yet to come. 

We hope these tips, coupled with Otis AI’s tale of success, inspire and guide any entrepreneur who reads this. You’re now part of our ongoing mission to power prosperity worldwide. Go forth and launch successfully, entrepreneurs.