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Scale once you have validated your business model from "summary" of Running Lean by Ash Maurya
Scaling a business before validating the business model can lead to wasted resources and effort. The primary goal is to ensure that there is a clear and sustainable market need for the product or service. The validation process involves engaging with potential customers, understanding their needs, and refining the offering based on feedback. This iterative process allows entrepreneurs to adapt and pivot as necessary, decreasing the risk of building something that no one wants. Once the product-market fit is established, the focus shifts to scaling. This means increasing the capacity to deliver the validated solution to a larger audience. Scaling requires a different mindset and skill set compared to the initial stages of development. It involves not just marketing and sales strategies, but also operational efficiencies, team expansion, and infrastructure development. Key metrics should be monitored closely during this phase to ensure that growth is sustainable. Customer acquisition cost, lifetime value, and retention rates become critical indicators of success. Properly understanding these metrics allows businesses to make informed decisions about when and how to scale effectively. Scaling should not be a one-size-fits-all approach. Each business may require a unique strategy based on its industry, target market, and resources. Engaging with early adopters and using their feedback can provide insights into the best ways to grow.- Scaling is about amplifying the validated model, ensuring that all parts of the organization are aligned towards the same vision, and that the infrastructure is in place to support increased demand. This methodical approach to growth prevents common pitfalls and sets the foundation for long-term success.
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