How To Start A Startup That Scales: A Step-By-Step Guide For First-Time Founders

Building a startup is like jumping onto a roller coaster — very exciting, somewhat scary, and full of ups and downs. However, there’s more to it than just starting. You need to scale.

Scaling a startup requires careful planning, strategic execution, and a deep understanding of the market as well as the business — especially if you’re a first-time founder aiming to reach a larger market and achieve sustainable success.

One of the most popular ways to accomplish this level of business success is to use the Lean Startup Methodology. In this comprehensive guide, we’ll show you how to scale a startup by focusing on the Lean Startup Methodology’s key strategies — highlighting best practices for first-time founders. But first, what exactly is the Lean Startup Methodology?

What is the Lean Startup Methodology?

The Lean Startup Methodology, developed by Eric Ries, is a scientific approach to creating and managing startups. It emphasises quickly building a minimum viable product (MVP), testing it in the market, and using customer feedback to iterate and improve.

This approach minimises waste and increases the chances of success by ensuring you build something customers will pay for — especially in a market like Africa.

How to start a startup that scales in Africa

The Lean Startup Methodology can work for African markets despite the peculiar landscape. The trick is knowing exactly how to adapt it to the continent.

Here’s how to start a startup that scales as a first-time founder using the Lean Startup Methodology:

1. Ideate and conduct market research
2. Craft a solid business plan
3. Build a strong team
4. Secure funding
5. Develop a minimum viable product (MVP)
6. Create a go-to-market strategy
7. Launch and iterate
8. Scale your operations
9. Stay agile and adaptable

Let’s see how you can use these strategies exactly!

1. Ideate and conduct market research

The first step in starting a successful startup is brainstorming multiple ideas that align with your passion, skills, and interests. Think about the problems or opportunities in the market that resonate with you. After all, every successful startup begins with inspiration — often fueled by real-world challenges or opportunities.

For instance, consider the journey of Jumia — an e-commerce platform that transformed online shopping across Africa, or Paystack — a fintech startup that revolutionised digital payments on the continent.

Both companies started by recognising an existing problem and then providing a solution. Still, even though a startup’s journey begins with a compelling idea, not all ideas are viable business opportunities.

So, now that you have your list of ideas, it’s time to narrow it down based on feasibility, market potential, and your unique value proposition.

Here’s what we mean:

• Validate your idea by talking to potential customers, conducting surveys, and analysing industry reports. This approach will help you gauge interest and identify potential pain points.
• Develop a clear Unique Selling Proposition (USP) that differentiates your startup from competitors. This USP could be a unique feature, a new technology, or a different business model.
• Assess the market size and potential for growth. A larger market with a clear path to scalability is more attractive than a smaller, niche market.

2. Craft a solid business plan

Now that you recognise the viability of your startup idea, it’s crucial to craft a well-structured business plan to help you visualise how to build it. This way, you can outline your business model, highlight your strategy, and emphasise your goals.

The plan will serve as your startup’s roadmap and guide your long-term operations, finances, and marketing strategies. So, take your time with it.

Remember to outline the goals and objectives of your startup idea and the strategies and tactics to achieve them. But don’t forget to also consider the competitive landscape of the industry you want to enter.

Here are the key points to include in your business plan:

• Business description. Detailed information about your business, including the market needs it addresses and how your product or service meets those needs.
• Market analysis. An analysis of your industry, market size, expected growth, and competitive landscape.
• Funding requirements. An overview of your funding needs, potential funding sources, and plans for using the funds.
• Financial projections. Detailed financial forecasts, including projected income statements, cash flow statements, and balance sheets for the next three to five years.

3. Build a strong team

As a first-time founder, your early-stage team can either break or make the business you have set out to build. So, you must find birds you can flock together with. Focus on assembling a diverse team with the necessary skills and expertise.

You can take these steps to build a strong team:

1. Define roles and responsibilities. Clearly outline the roles and responsibilities needed to achieve your business goals.
2. Recruit top talent. Attract and hire individuals with the skills, experience, and passion to drive your startup forward.
3. Foster a collaborative culture. Create a work environment that encourages collaboration, innovation, and open communication.
4. Ensure operational efficiency. Implement processes and tools to streamline operations and improve productivity.

Still, assembling a team that shares your vision is more challenging than it sounds.

Therefore, you might want to consider these key points:

• Identify co-founders who share your vision and have complementary skills. This could include technical expertise, business acumen, or marketing experience.
• Hire talented individuals who fit your company culture and have the necessary skills for the job. Focus on hiring for cultural fit and potential rather than just technical skills.
• Seek mentorship from experienced entrepreneurs, investors, and industry experts. This can provide valuable guidance and support throughout the startup journey.

Remember that a successful startup always relies on a talented and dedicated team.

4. Secure funding

One of the most common concerns for first-time founders is figuring out where to start when it comes to funding their dream startup. Raising capital can be daunting, but securing the right funding is crucial for realising your vision.

Here’s how the funding process works:

1. Explore funding options. There’s bootstrapping, angel investing, and venture capital — each with its advantages and disadvantages.
2. Prepare to raise funds. Before approaching investors, it’s crucial to prepare thoroughly. Investors will scrutinise your business plan, market potential, and team, so being well-prepared can significantly increase your chances of securing funding.
3. Pitch your startup to investors. The pitch meeting is your opportunity to make a strong impression and convince investors of your startup’s potential. 

Once you have interested investors, the next step is negotiating fair terms and closing the deal. This process involves legal and financial considerations, so prepare for the due diligence process (during which investors will scrutinise your business). 

Remember: the right funding partner can provide capital, strategic guidance, and support — helping you navigate the challenges and opportunities ahead.

5. Develop a minimum viable product (MVP)

An MVP is the most basic version of your product that still solves a problem for your users. It’s a way to test your concept quickly, gather feedback, and iterate without wasting time or money on unnecessary features. 

Successful startups often begin with an MVP and gradually add features based on user feedback and market demand. Let’s explore how you can develop an MVP that paves the way for your startup’s success.

Here’s how you could develop an MVP:

1. Identify the core problem and solution. Start by clearly defining the problem your product aims to solve and how your solution addresses it. This will help you focus on the essential features needed to deliver value to your users.
2. Conduct market research. Validate your assumptions by conducting thorough market research. Understand your target audience’s needs, preferences, and pain points. Use tools like surveys, interviews, and focus groups to gather insights and ensure demand for your product.
3. Define the MVP features. List the key features to solving the core problem. Prioritise these features and eliminate any non-essential elements that you can add later. The goal is to keep the MVP simple and focused.
4. Design the user experience (UX). Plan the user journey and create wireframes or mockups to visualise how users interact with your MVP. Focus on building a seamless, intuitive experience that efficiently addresses the core problem.
5. Develop the MVP. Build the MVP using agile development methodologies. Collaborate closely with your team to ensure the development process is flexible and responsive to changes. Keep the development cycle short and iterative for quick testing and feedback incorporation.
6. Test the MVP. Conduct internal testing to identify and fix any bugs or usability issues. Once the MVP is stable, launch it to a small group of early adopters or beta testers. Encourage them to provide honest feedback and track their usage patterns to identify areas for improvement.
7. Gather and analyse feedback. Collect qualitative and quantitative feedback from your early users. Use analytics tools to track key metrics such as user engagement, retention, and satisfaction. Analyse this data to understand how well your MVP meets user needs and where it falls short.
8. Iterate and improve. Based on the feedback and data analysis, make necessary adjustments to your MVP. This might involve tweaking existing features, adding new ones, or rethinking your approach entirely. The goal is to refine your product to better serve your users.

Consider Dropbox.

The popular file-sharing service started with a simple MVP — a video demonstrating how the product worked. This unconventional approach allowed the founders to gauge interest and gather feedback before developing a fully featured product. By focusing on the core problem of easy file sharing and attracted early adopters.

Remember, an MVP is not the final product—it’s the starting point for continuous improvement. By launching with an MVP, you can build a strong foundation for your startup and increase your chances of success.

6. Create a go-to-market strategy

Starting a new startup is like preparing for a tour in an unknown city, and your Go-to-Market (GTM) strategy is your map. It outlines how to reach your target customers and achieve a competitive advantage.

A well-crafted GTM strategy ensures that your product launches successfully, reaches the right audience, and gains traction in the market. 

Here’s how you can create a GTM strategy that sets your startup up for success:

1. Define your target market. Start by identifying your ideal customers. Who are they? What are their needs, preferences, and pain points? Use market research to create detailed customer personas that represent your target audience. This will help you tailor your messaging and marketing efforts to resonate with them.
2. Craft your value proposition. Clearly articulate the unique value your product offers. What makes it different from competitors? How does it solve your customers’ problems better? Your value proposition should be compelling and communicate the benefits of your product in a way that resonates with your target audience.
3. Choose your marketing channels. Identify the most effective channels to reach your target audience. This could include social media, email marketing, content marketing, and more. Consider where your audience spends their time and how they prefer to consume information. For example, investing in Instagram ads and influencer partnerships would be a smart move if your target audience is active on Instagram.
4. Develop your messaging and positioning. Create messaging that directly addresses your target audience’s needs and pain points. Your positioning should differentiate your product from competitors and highlight its unique value. Consistent messaging across all marketing channels is critical to brand recognition and trust.
5. Plan your launch strategy. Outline the steps and timeline for your product launch. This includes pre-launch activities (e.g., teaser campaigns, beta testing), the launch event itself (e.g., product demo, press release), and post-launch activities (e.g., follow-up emails, customer support). A well-executed launch can generate buzz and drive initial sales.
6. Set your pricing strategy. Determine the best pricing model for your product. This could be subscription-based, freemium, one-time purchase, etc. Your pricing should reflect your product’s value and be competitive within your market. Consider running A/B tests to determine the most effective pricing strategy.
7. Build your sales and distribution strategy. Decide how you’ll sell and distribute your product. Will you sell directly to consumers through an online store? Partner with retailers? Use a sales team? Your distribution strategy should align with your overall business goals and make it easy for customers to purchase your product.
8. Measure and optimise. Define key performance indicators (KPIs) to track the success of your GTM strategy. This could include metrics like customer acquisition cost (CAC), lifetime value (LTV), conversion rates, and more. Regularly analyse your performance and make data-driven adjustments to optimise your strategy.

A well-crafted GTM strategy sets the stage for a successful product launch and sustainable growth. You can maximise your startup’s potential by understanding your market, targeting the right customers, and executing effectively.

7. Launch and iterate

Once your MVP is ready and you have a solid GTM strategy, it’s time to launch your product. It’s the culmination of your hard work and preparation, but it’s also just the beginning of your journey. The initial launch is about more than just going live; it’s about setting the stage for continuous improvement and growth. 

Here’s how to ensure a successful launch and ongoing improvement.

1. Prepare for launch. Ensure your Minimum Viable Product (MVP) is ready. Conduct final testing to iron out any issues and ensure a smooth user experience.
2. Develop a marketing plan. Create a comprehensive marketing plan outlining your promotional activities. This plan should include your content strategy, social media campaigns, email marketing, and PR efforts.
3. Build buzz: Generate excitement with teaser campaigns, countdowns, and behind-the-scenes content. A pre-launch campaign can help build an email list of interested users.
4. Prepare your team. Ensure your team (including customer and technical support) is ready to handle the launch.
5. Executing the launch. Start with a soft launch to a smaller audience to gather initial feedback and make necessary adjustments. Once refined, proceed with the full launch. Announce it across all channels and monitor real-time performance using analytics tools.
6. Engage with early users to gather feedback. Use surveys and feedback forms to gather insights from early users. Monitor social media for real-time feedback. Leverage customer support interactions to understand user issues and suggestions.
7. Iterate based on feedback. Focus on changes that have the most significant impact on user satisfaction and product performance. Start making necessary improvements and communicate updates to your users transparently.
8. Test and iterate. Continuously test new features and improvements using A/B testing to see what resonates best with users.

You can build a product that stands the test of time, just like Instagram. 

Instagram’s journey from a simple photo-sharing app to a global social media platform is a testament to the power of iteration. After its initial launch, Instagram continuously added new features and enhancements based on user feedback and market trends. Instagram’s iterative approach has kept it relevant and popular — from filters and hashtags to Stories and Reels. 

8. Scale your operations

Scaling your startup is the process of expanding your business to achieve higher levels of growth and success. It involves increasing your capacity, resources, and capabilities to meet the demands of a growing market.

Here’s how to scale effectively:

1. Develop a growth strategy. Create a comprehensive growth strategy that outlines your goals, target markets, and expansion plans. Align your team and resources with this strategy.
2. Secure funding. Explore funding options to support your scaling efforts. This could include venture capital, angel investors, loans, or grants. Prepare a solid business case to attract investors.
3. Optimise operations. Streamline your operations to ensure efficiency and scalability. Implement processes and systems that can handle increased demand and minimise bottlenecks.
4. Invest in technology and leverage it to support your growth. Invest in scalable software, automation tools, and cloud solutions that can adapt to your needs.
5. Build a strong team. Attract and retain talent that can support your growth. Foster a positive company culture and provide opportunities for professional development.
6. Expand your market. Identify new markets and customer segments to target. Tailor your marketing and sales efforts to reach these new audiences.
7. Monitor performance. Track key metrics and performance indicators to measure your progress. Use data analytics to gain insights and make informed decisions.

Most big companies were once a startup with a vision. So, don’t hesitate to take the leap!

9. Stay agile and adaptable

The startup journey is unpredictable, and being agile and adaptable is crucial for navigating challenges and seizing opportunities. Stay open to feedback, continuously learn from your experiences, and be willing to pivot if necessary.

Flexibility and resilience are vital traits of successful startup founders

Conclusion

Starting a startup that scales is a complex but rewarding journey. Following the tips in this guide can increase your chances of success and build a thriving business. So, stay focused, be adaptable, and keep learning from your experiences.

However, having a fantastic investor like Ingressive Capital in your corner can also make the journey more enjoyable (and put you on track to achieve unicorn status!). Join our portfolio if you’re building a tech-enabled business that will shake the continent!