Questions

I know the theory: Reach product market fit then scale. But when do you know when you have reached the perfect fit? There is always the temptation to scale too quickly and almost from the outset. But how much AB testing and iterating is necessary in a closed group before scaling is called for? And what are the most NB metrics to look at?

You see, scaling is often confused for simple growth. Scaling your business means creating a foundation that can serve more customers with the same resources. If your systems meet these criteria, you are ready to start investing in growth. Unfortunately, growth is rarely that smooth. You get to decide when you will aggressively seek new customers. Everyone wants a growth curve that looks like a hockey stick, but that usually is not the case. As you gain customers, you will reach a point where your existing systems cannot accommodate all the work. This is when you turn your focus to bolstering your infrastructure before another round of customer acquisition. When Bean Ninjas was 18 months old, our systems were failing to keep up. We were growing too quickly for our infrastructure, which explained why our churn rate was higher than the industry’s average.
Since our primary method of attracting and keeping customers is doing good work, poor quality is unacceptable to us. We had to make a conscious decision to switch from growth to consolidation. So, we stepped back from sales and marketing to focus on our systems and our team. This type of growth is the reality for many businesses. Because it is hard to grow your infrastructure incrementally. We need something with more flexibility and better reporting that works with our current process. In our latest consolidation phase, it took us almost a year to improve systems, complete documentation, and give people experience before we could handle more growth. Once we were happy with our improvements, we switched back to growth mode. Growth mode, quite simply, is when you aggressively find new customers. When you move back into growth mode, it is all up to you. You can technically do it whenever you like, though it is best to wait until your infrastructure is ready to handle a lot more business. At Bean Ninjas, we recently entered another growth phase. Once we had this in place, we knew we were ready for an influx of new business.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 3 years ago

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