You have definitely heard that 9 out of 10 new businesses fail within the first year of their opening. However, since you landed on this article, you are probably one of the lucky survivors interested in efficient ways to scale and further develop your business. And since you managed to lead your company through all the challenges 2020-2021 have brought upon the world, you need to be incredibly attentive and careful to maintain the growth and development of your business when you enter the operational space.

The tips that we offer in this article can be considered universal for any business. However, we intend to focus primarily on software development for startups and everything related to this domain, including quality assurance, consulting, and software maintenance.

Major planning mistakes

For some time, there was an opinion among novice entrepreneurs that a carefully calculated, realistic business plan is by no means an obligatory element in the creation and development of a company. Given that there were approximately fifty thousand bankrupt startups in France and twenty five thousand in Germany in 2021, we can be sure of the fatal fallacy of this statement.

However, other people’s mistakes exist so that we could learn from them instead of making our own. So, let’s analyze the pitfalls a lot of overly self-confident beginners make.

Insufficient knowledge of market needs; incorrect assessment of market trends; wrong assumptions related to the goods and services you offer.

According to statistics, 42% of startups failed precisely because the market was not interested in their proposals.

Blurred distribution of software company roles or, on the contrary, too narrow specialization and lack of proper communication within the team.

Right at the start, you need to thoroughly plan the required number of your own highly qualified specialists, forms of encouragement, and space for their personal and career growth. Bear in mind that without a clear understanding of exactly what part of the work you can do on your own and what you need to entrust to your tech partner, you will not be able to realistically plan and distribute your resources.

Unrealistic project cost estimate

Psychologists and experienced managers are well aware of this effect. Still, even those who have never written business plans have encountered it at least once in their lives when planning a renovation in your house or apartment. There is a difference between a thumbnail sketch and a detailed budget that includes all future expenses and even considers a contingency fund. Either way, however, in the business development process, even with the most detailed plan, it is very common to miscalculate the amount of money and time needed. Mistakes like this are almost inevitable. But when you’re well aware of this hidden risk, it is a lot easier and cheaper to mitigate the impact.

Of course, writing business plans for new products and services is a complex science. And it’s never a bad call to hire an experienced product development team to prepare such documents. When you don’t have the resources to do so, the least you can do is avoid making the fundamental planning mistakes we have covered in this section. More often than not, these pitfalls can cause your business development process a lot of trouble.

The matter is not limited to just a business plan, however, when we are talking about the growth and development of your company.

The business plan has been written. What’s next?

Set realistic prices for your products/services and never underestimate the importance of QA/QC.

When looking for ways to make your products and services more affordable for your customers, you should never do so at the cost of their quality. Poor quality leads to customer disappointment and loss of confidence in your brand, which can permanently bury your business.

Build a strong and highly motivated team

The people with whom you build and develop your business should not just work for you but perceive their work in your company as a mission. By gaining their trust and uniting them over a common goal, you will achieve much more excellent results than if you’ve simply managed them as a bunch of “mercenaries.”

Treat marketing expenses as a long-term investment

Remember the golden rule: “A good product without promotion is doomed to obscurity; competent promotion without a good product does not make sense.”

Learn to understand the customers’ actual needs and deliver on their expectations

Recall the scene of selling a pen from The Wolf of Wall Street? This is not just a movie trick. It shows the ability to sell the client exactly what they require. Even if they do not fully understand their own problem, they know how exactly the proposed product helps solve it.

Summing up

In scaling your business, you must understand that you cannot work alone. You have two options: to simply hire “employees,” or gather like-minded people around you, people who will share common ideas and vision of the future of your company. The second path looks much more viable, doesn’t it?