How To Grow Your Startup Without Burning Out
Many startup founders have to hustle their way towards their mission. As an entrepreneur, you might be familiar with having to stay up late at night questioning why you feel uneasy and whether what you're doing is working. If you already have a growing business, you might wonder how your business will continue to grow and if you’re good enough to handle it. All this worrying often leads to burnout.
We're going to take a look at why most founders burn out when they launch and scale startups, the three phases of a high-growth startup, and the problems you might face with each step and how to solve them.
If you want to find out how to install a high-growth startup system that generates 6-30 customers every month without burnout, keep reading.
Why Do You Experience Burnout?
Most founders develop systems that promise the most output instead of ones that can withstand the most stress. That's what leads to burnout. They end up building someone else's business with channels and products that they've heard will work. They don't make one that excites them daily or utilize their expertise at the highest level.
The Phases of High-Growth Startups
The truth is, you only need to go through three phases to scale your startup to eight figures without burning out. Here are the stages of high-growth startups:
This phase is where you sell quickly. This stage involves modeling, which means using a system or technique as a template for creating a better startup.
Problem: Most businesses sell ideas rather than products that promise results. They often do so at a loss. This leads to cash flow issues, problems attracting talent, inability to invest in marketing, and an environment that's inhospitable for investors. All of these are a recipe for anxiety and stress.
Solution: Figure out how lucrative your business has to be to expand, then produce a profitable product with a repeatable outcome for your consumers by merely iterating your marketing message and pricing. Reduce complexity as much as possible.
This stage is where you're going to sell profitably. You're going to use experimentation and test all the ideas and initiatives you have in your business.
Problem: Companies with a few sales often rely on their networks and referrals to do so, or hire expensive salespeople to manage the process. This causes large ups and downs in revenue.
Solution: Test combining technology and media with your salespeople to acquire sales at a significantly cheaper rate. This will allow you to invest $1 and gain 1.5-3x in return, giving you the confidence to re-invest in the firm, employ better team members, and raise more funds.
This step is where you're going to sell exponentially. You're going to do that through the abstraction or simplification of your business.
Problem: As you grow, your startup becomes consistently more complex. This leads to depression and panic. The feeling of getting trapped under a heap of complicated problems can lead to burnout.
Solution: Simplify your business through value chain processes. Once your business is simple, you can solve complex problems for your customers, which will increase your profits. This will increase your ROI 5-10x for each $1 you put into your business.
Founders often experience burnout when struggling with startup growth and boosting predictable revenue. You can take advantage of this information to figure out where you are in the process and what challenges you're facing so you can come up with appropriate solutions.