Growth Strategies for Start-Ups

Read this chapter on the various growth strategies companies use. One particular area of interest for strategic managers is the best practices to build growth for new start-ups in the evolving marketplace. This video will teach how Hubspot CEO Brian Halligan addresses growth. He offers an analogy to showcase how much we as consumers invest in start-ups in our daily lives, such as using Spotify and Uber, which are all start-ups.

Learning objectives and overview

Learning objectives

  • define what constitutes a growth firm
  • describe the problems of growth and growth strategies
  • describe growth mistakes and solutions


Overview

In this chapter we investigate possible strategies for the growth of start-up firms. First, we describe growth as a phenomenon and basic problem for such firms. In particular we analyze the problem from the viewpoint of new start-ups which plan from the outset to grow larger quickly. We then examine different growth strategies which firms can pursue. In the second part of the chapter we present the most well-known mistakes made by start-ups during the growth phase, and suggest ways to correct or - even better - avoid them. To conclude, we provide recommendations for how entrepreneurs can profit best from growth. In this chapter we refer most often to firms with "products" but the strategies and pitfalls reviewed here also apply to service companies.

Source: Global Text Project, https://s3.amazonaws.com/saylordotorg-resources/wwwresources/site/wp-content/uploads/2012/12/BUS305-5.3-Growth-Strategies-for-Start-ups.pdf
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