Startup Scaling Challenges and How to Overcome Them


Published: 28 Oct 2022

Startup scaling

startup scaling challenges

As an entrepreneur or startup founder, you are probably faced with a number of complex scaling challenges as your company grows and evolves. In this post, we take a look at startup scaling challenges you may face down the road and ways to cope with them. Let’s begin! 

Scaling up a startup: Signs you are ready for it

How do you know when it’s time to scale your startup up? When answering this question, it’s worth mentioning that scaling up isn’t a way to earn more money. It’s rather about the next reasonable step in the startup journey that will help you achieve your goals and grow your business. Thus, before you move forward with expanding to new markets, hiring more staff, or investing in technology, take a look at some signs to make sure you’re ready for it. After all, knowing you’re in a good position to scale will help you overcome many startup scaling challenges in the future. 

You have a dedicated core team. It’s likely that your current team will take the lead at the scaling stage of a startup, which means managing the startup scaling challenges as your business grows. It’s important that a founder can fully rely on the core team, so make sure that the team members are dedicated and are ready to remain a part of the deal for the long haul. If your core team members are overwhelmed, and face burnout and stress now, they may not be ready for a handling upcoming startup scaling challenges. Thus, your task is to ensure the core team is ready for the big step. 

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You have a bulletproof concept. Expanding your business without a model that guarantees predictive and durable success can bring about plenty of startup scaling issues. With that in mind, before you scale, you should have a verified concept you are sure will work for your target audience and bring you a return on investment. Thus, many software development services for startups offer to include a Minimal Viable Product (MVP) as a part of your strategy, as a solid foothold for scaling your startup. 

You have a proper organizational structure. It’s clear that you need to have everything properly organized when it comes to the company culture, financial management, and other aspects before scaling your startup. Your company should be ready to attract new members with a clearly stated mission, values, principles, and employee perks, especially when it comes to such a picky crowd as software developers. It’s best to avoid creating a serious startup scaling challenge with your own hands by trying to arrange those things at the stage of scaling. Make sure you have everything needed to onboard new employees in advance.

You have a stable cash flow. You may have reached a point where you have some money on hand and want to invest it in your startup scale-up. This is where one of the biggest startup scaling challenges transpires – the potential inability to cover all the expenses associated with scaling your startup. So, be sure to prepare projections of your future expenses and income to foresee possible challenges and potential risks that may cost you a business. 

READ ALSO: Scaling Engineering Teams for Startups: What to be Prepared for?

Scaling a startup: People and organizational issues

As you begin to scale your startup, it is important to focus on people and organizational issues. This may include recruiting new team members, developing effective processes, building a culture of innovation, and communicating effectively with your team. Let’s review the key startup scaling challenges associated with these processes.

Structural changes. One of the biggest startup scaling challenges is that you often have to adjust its organizational structure in order to keep up with the increased demands of the growing startup. Coping with the changes often requires rethinking existing strategies and processes that let you fare well in the early stages of a startup. When scaling your startup, you need to establish a more complicated structure when it comes to the team roles, management, and software development process.

Creating new standards. A common startup scaling challenge is that companies have to establish firm guidelines when it comes to key aspects of teamwork. For example, it’s crucial to have a single company-wide communication channel to keep a growing team on the same page. Another important aspect is developing a cohesive rewarding system for all team members, which by no means can be skewed toward your core employees. Thus, you should devise a well-rounded strategy to keep a balance between your new hires and veterans. This brings us to the next potential startup scaling challenge.

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Potential conflicts. As you build out a new culture in your startup, there’s a risk to run into a dispute between new hires and core team members caused by differences in priorities or values, approaches to business development, or simply clashes in work styles. In scenarios where teamwork is impeded by conflicts between team members, a startup leader should be ready for making tough decisions. This might involve having difficult conversations with the people who helped the startup thrive in the past or making changes, such as adjusting roles or responsibilities in response to issues that arise. Additionally, startup leaders should strive to foster an open and collaborative environment where everyone is heard and valued. By investing time and effort into building strong relationships within your team, you can help ensure that conflicts are resolved quickly and effectively. 

Hiring software developers for a startup. This is one of the key startup scaling challenges. Hiring the right people to complement your core team – in terms of hard skills and company culture – is complicated and time-consuming. Moreover, the demand for engineers is at an all-time high, so it can be problematic to add skilled talent without going over your budget. 

One of the best options for startup scaling is to hand off team formation to specialized providers. By doing so, you can tap into a large pool of skilled developers who are dedicated specifically to your startup project. These developers will have the technical expertise and industry knowledge needed to help your startup grow and thrive, on the caveat of choosing a reliable vendor, for example, nCube. 

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Hiring software developers for a startup with nCube

Our model of hiring software developers for a startup helps resolve one of the most exacerbating startup scaling challenges. We specialize in adding skilled engineers from Eastern Europe and Latin America and integrating them into your core team. We maintain a dedicated approach where the people we add will work on your project full-time and report to you directly. 

During the course of cooperation, we work closely with you to understand your startup’s needs and goals, so that the engineers we add can deliver top-quality results as an integral part of your team. 

Some of the key ways that nCube can help you with startup scaling include:

  1. Providing software developers who are skilled in software development for startups, and have the expertise needed to tackle the unique challenges faced by startups at all stages of growth. For example, a Germany-based startup, Flightright has benefited from our ability to compose a full-fledged team to build a landscape of products during the stage of rapid growth. 
  2. Building a center specialized in developing software solutions that are tailored to your specific business needs, including MVP and full-cycle development. 
  3. Creating a strong basis for distributed work: We take care of building out a remote infrastructure, communications, and team motivation, which are crucial during times of rapid growth. Contact us.


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