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HBR On Strategy

How to Scale a Start-Up

Jul 31, 2024
27:45
Snipd AI
In this engaging discussion, Jeffrey Rayport, a senior lecturer at Harvard Business School, sheds light on the complexities of scaling startups. He emphasizes the critical phase of achieving 'profit market fit' for long-term success. The conversation dives into common pitfalls that hinder growth, such as demand management and capital constraints. Additionally, Rayport highlights the pivotal role of organizational culture in scaling, sharing insights from successful companies like ThreadUp and Netflix. Tune in for strategic takeaways on navigating startup challenges!
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Podcast summary created with Snipd AI

Quick takeaways

  • Successfully transitioning from startup to scale-up requires managing cash flow and achieving profit market fit amidst growing demand.
  • An adaptable organizational culture fosters employee satisfaction and customer loyalty, crucial for sustainable growth during the scaling phase.

Deep dives

The Challenges of Scaling for Startups

Rapid growth can create significant challenges for startups as they transition from the startup phase to a scale-up one. Many new organizations struggle to maintain profitability while managing increased demand and cash flow. This stage, referred to as the scaling phase, often begins after a startup has achieved product market fit but lacks the necessary strategies to achieve profit market fit. As highlighted in discussions about various failures, some companies, despite positive growth, can fail to serve customer demand effectively, which can lead to their downfall.

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