Scaling your business effectively can give you a huge edge over your competitors, whether they are domestic or international players

Scaling is one of the most discussed topics among entrepreneurs. However, it is a term that often being confused as growing. So what exactly is scaling?

Growing a business is not equivalent to scaling one. To grow a business, it can be done by investing more resources such as staff and raw materials to increase output. Both revenue and cost, in this case, will grow proportionately.

Scaling, on the other hand, is about being able to grow the revenue while keeping operating costs low. It is not just about selling more products and services.

This article serves as a guide to scale up your business, be it for a small business owner or someone who is managing a multinational corporation.

Four key factors of scaling

Premature scaling occurs in 70 per cent of companies and is responsible for the failure of 74 per cent of tech startups.

To ensure that scaling is not done prematurely, you must first understand the four key factors of scaling. The four key factors are: Market, cash flow, internal control, skills, and attitude.

1. Market

• What are the key cultural factors in your new market do you have to be aware of?
• What is the demographic of your target audience?
• What opportunities does this market have that can be exploited?
• When is a good time to enter this market?

Also Read: 5 content marketing trends you need to heed

These are some of the questions that you should think about before scaling. Be it entering a new market or expanding within the current one, you should have in-depth knowledge of the dynamics of the target market, and the taste and preferences of the consumers. You will then be able to position your company better to reach out to the target market.

2. Cash flow

Without money, a company cannot survive. As scaling aims to keep the operational cost low, cash flow management is essential. Having strong credit management and tight control of overdue debt allows companies to constantly track their cash flows in and out of the company, minimising unnecessary loss.

3. Internal control

Scaling allows the company to become bigger. In a small company, internal control may not be such a big of a problem as everyone is kept updated all the time. Once the company grows, there will be more people to handle and internal control becomes increasingly complicated.

Proper documentation must be done; policies and procedures need to be put in place to provide guidance for the employees. Stricter management standards and quality control systems are needed to ensure that the company is running effectively and efficiently.

4. Skills and attitude

Companies at different stages of scaling would require people with different skill sets. Initially, companies will need generalists with strong problem-solving skills. When the company grows bigger and segregation of duties occurs, specialists are required.

Companies will need to hire more specialists along the way and be able to assimilate them into the team. Messaging of the scaling activities of the company has to be clearly communicated to team members to ensure attitude alignment.

Three ways to scale your business

Here we have three common ways to scale up a business.

1. Market penetration

Market penetration is about selling more of the existing products to the existing clients/markets. To sell more you will need to look at four elements: business model, distribution network, marketing, and operations. Some ways that you can do so is by modifying the business model, building partnerships and alliances, or enhancing distribution deals and marketing efforts.

Before deciding to scale the business in this manner, you should ask yourself these questions:

1. What is the current size of the market? What is the potential size of the market? Will it grow or contract?
2. How much of the market share can we take?
3. How well does your product fit into the current market?

2. Introduce new products

The second method is to introduce new products. This does not mean that companies have to spend big bucks to develop totally new products to existing clients. It can be about making modifications to the existing products, repackaging it to increase value to clients for their purchase.

Also Read: Don’t be anchored by the anchor2019

This can be done through the enhancement of the product by eliminating obsolete features and adding new innovative features. Alternatively, companies can create and launch a completely new product that is related to existing products.

These are the few questions that you can reflect on:

1. Will the new product address the unmet need of customers?
2. Will the product make money?
3. How will your new product fit into your core competencies?
4. Is this new product a complement to your current offering? Or is it a replacement?

3. Add a new target market

The last method is to add a new target market. This is done by selling the existing products to the new markets. To do so you can reach out to new customer segments or expand outside the home country. The easiest way is to identify a market that is geographically close to the home market and has a relatively close culture to the home country.

Think about these questions:

1. Do you need a new set of strategies?
2. Can the same value proposition be applied to the new target market?
3. What is the market size you are looking at?
4. What are the environmental factors that can affect company performance in this new market?
5. Who are the main competitors in such markets?

Four scaling strategies

With the understanding of the way to scale a business, you can now proceed to adopt one of the four strategies that are classified based on two attributes – efficiency vs. speed and level of certainty.

1. Classic startup growth

For the classic startup growth model, efficiency is prioritised in the face of uncertainty. You will be aiming to minimise uncertainty while still growing. You will need to be resource efficient and need to learn about the market, technology, and team before commencing on scaling. In this controlled and efficient growth, you can work to minimise the uncertainty while trying to seek for product/market fit.

Also Read: Why business transformation is important in the digital age

2. Classic scale-up growth

Classic scale-up growth focuses on growing efficiently once the founders have achieved certainty in the environment. Typically, founders will only begin scaling once they are sure of the environment. This strategy is good if you are maximising the return of investment in an established and stable market and it is usually done in industries where there is no need to grow quickly.

3. Fast scaling

If you are adopting the fast scaling strategy, you will usually give up efficiency for growth. Fast scaling takes place in the environment of certainty, which means that the cost is well understood and predictable. This is a very good strategy to gain market share or when companies are trying to achieve revenue milestones.

4. Blitzscaling

Blitzscaling (a term coined by Reid Hoffman and Chris Yeh) works only if founders are willing to give up efficiency for speed but without waiting to achieve certainty. The aim of blitzscaling is to gain market shares quickly to become the market leader. This approach is a “do or die” method in which the company either succeeds or dies within a short time. The team has to accept the risk of making wrong decisions in exchange for the ability to move faster and achieve success.

Five steps to minimise the risk of scaling a business

Scaling a business has never been an easy task and many organisations had to learn in a hard way to get it right.  Here we present five steps to minimise the risk of scaling:

1. Evaluate & plan: Identify a strategy early in the planning and often evaluate the plan.
2. Find resources: Ensure that there are enough funds and internal capability and capacity to support the scaling plan.
3. Upgrade technology: Start to automate the processes to make things easier to execute.
4. Revise processes: Automate and add more processes to support the scaling plan.
5. Leverage on Strategic Business Relationship: Identify and work with current or existing partners and clients that can assist with scaling the business

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In addition to TikTok, we also have updates from Cailu, Waresix, and Naspers’s digital payments unit PayU

UK investigates TikTok over children’s data privacy handling – SCMP

Elizabeth Denham, head of the UK Information Commissioner’s Office, announced in a parliamentary committee hearing earlier this week that the regulator is investigating ByteDance’s TikTok over its handling of children’s data privacy, South China Morning Post reported.

The regulator is investigating the app’s open messaging system which allows adults to contact children. It is also investigating how private information of underaged users is collected and stored. It is looking forward to seeing if the platform is violating the European Union privacy law, which requires companies to provide specific protections related to children’s personal data.

ByteDance, as the company behind the platform, did not immediately respond to a request for comment.

Singapore’s GBCI Ventures leads US$10M pre-Series A funding for China’s Cailu – Dealstreet Asia

Singapore-based smart city venture fund GBCI Ventures has led a US$10 million pre-Series A funding round for Chinese blockchain media firm Cailu, Dealstreet Asia reported.

Digital asset investment fund Orka Capital also participated in the funding round.

Founded in 2018, Cailu integrates industry information, content socialisation and token mechanism to provide content and servers to users and creators.

The company plans to use the funding to further research and development on blockchain immersion media (IM), CLC ecosystem building, engineering expertise, platform operations, and partnership programmes to build a blockchain ecosystem.

Also Read: Why Tik Tok is not a real competitor to Instagram

Naspers’s PayU expands into Southeast Asia by acquiring Red Dot Payment – e27

The payments arm of South African internet conglomerate Naspers, PayU, has announced its entry to Southeast Asia by acquiring Singapore-based online payments solutions company Red Dot Payment (RDP).

PayU acquired a majority stake in RDP in a transaction valuing the company at US$65 million.

RDP founder will continue to retain a stake in the company, while the majority of other shareholders will exit.

“We will now provide our existing global merchants access to Southeast Asia with single API integration, thus strengthening our global PayU Hub platform. PayU will continue to look for prospects to reinforce our footprints in this market,” said Laurent le Moal, CEO of PayU.

Indonesian logistics startup Waresix raises US$14.5M in Series A – e27

Indonesian logistics startup Waresix today announced that it has raised a US$14.5 million in Series A funding round led by growth fund EV Growth.

SMDV and Jungle Ventures also participated in the funding round, which comes less than eight months after raising its pre-Series A of US$1.6 million.

The startup has previously raised a seed funding round in February 2018.

The funding will be used to expand Waresix’s land transportation service and further strengthen its warehousing network to second-tier cities.

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Image Credit: Caleb Woods on Unsplash

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You’ve got a great idea, but how do you sell it to industry greats? Check out our guide to pitching 101, with tips from established investors and corporates.

Pitching is a necessary experience for every budding startup who wants to launch their ideas into the global spotlight. There’s no better way to hone your skills when it comes to selling your business model to a potential investor.

More importantly, pitching gives your startup the opportunity to connect with venture capitalists (VCs) and corporates, which are often on the lookout for partners to co-innovate with and fund.

If you’re new to the concept of pitching, not to worry. Here are some tips from investors and corporates on what they look out for in a startup pitch, and what you should avoid!

Also read: SLINGSHOT 2019: A launchpad for promising startups across the world

How to impress with your pitch

It’s important that your pitch offers unique insights. Investors and corporates are on the lookout for uncommon solutions that tackle markets ripe for disruption.

Paul Santos, SEA Managing Partner for Wavemaker Partners, said: “Pitches that wow me are often the ones that can explain tremendous opportunities that aren’t so obvious. The challenge is that you have limited time to do this. This is why pulling it off makes it impressive.”

For Kelvin Ong, Founder and CEO of FocusTech Ventures, what gets his attention are “well-defined or re-framed problems in underserved markets that are solved with differentiated approaches.” This includes proposing multi-faceted solutions that span from business model analysis, channel strategies, to user experience.

Graham Howes, Managing Director of BP Ventures Asia, echoed similar sentiments. As BP Ventures Asia aims to invest in solutions that can produce energy more efficiently and contribute to a low carbon future, his firm looks for startups that have a differentiated technology or business model, on top of a clear and realistic business plan.

Examples of such innovative efforts include the electrification and digitisation of mobility, as well as the move from individual vehicle ownership to fleet.

Also read: Joining pitching competitions is good for founders and startups

Key traits investors look out for

Kelvin Ong from FocusTech Ventures said: “When it comes to early stage investing for us, founding team dynamics and positive traits that signal execution ability, commitment and conviction are table stakes.”

He added: “With the right market dynamics, customer understanding and product mindset, positive validation of key assumptions and traction will follow.”

Daniel Lin, Co-Founder and Executive Director of FundedHere, has four key criteria in mind when selecting the kind of startups he’d like to work with: (i) founder’s experience and executional capabilities; (ii) industry of the startup; (iii) scalability of the business; and (iv) valuation of the startup.

What to say and avoid during pitching

You’re confident in what your startup has to offer. But now you need to tackle the execution. Here’s a list of things you should say and avoid during your pitch session:

• Avoid saying “we have a passionate team”. Instead, prove why you’re the best team for this opportunity, convey how you spotted the opportunity, why it was meaningful, and why you’re the right team to pursue it.
• Articulate and divide your time around market, product and business areas, while framing your pitch around what your startup has achieved so far.
• Be humble in listening, and flexible enough to let go of pre-conceived assumptions. At the same time, you must remain confident, firm, and stay true to your vision and unique way of thinking.
• Rehearse your pitch and ensure that your slides bolster your verbal presentation. Never underestimate the power of first impressions for your audience. Begin with a bang.

Test your pitch out at SLINGSHOT 2019 – Asia’s most exciting deep tech startup competition!

Want to earn the chance to pitch to some of the world’s best and brightest? Check out SLINGSHOT 2019, Asia’s most exciting global deep tech startup pitching competition powered by Startup SG, organised by Enterprise Singapore. More than US$1 million in prizes are up for grabs!

Good news: the application deadline for SLINGSHOT 2019 has been extended to 12 July 2019! Don’t miss the chance to pitch your startup to more than 160 of the world’s biggest investors and corporates – apply here!

The post How to impress with your startup pitch appeared first on e27.

With the e-commerce industry heating up, how do you get users to turn into paying customers

Growth of any e-commerce business zeroes is largely dependent enticing the customers to make a purchase. It is as much about generating repeat business as it is about acquiring new customers. While e-businesses are gaining immense momentum with each passing day, getting users to buy from you can be difficult owing to the increase in competition. Cart abandonment is one of the biggest conversion woes for e-commerce websites.

Imagine the disappointment of having an “almost-converted” customer who added a product to their cart only to leave it behind. There are several reasons for this, as enlisted below:

However, it is not all doom and gloom, as you still have a chance to turn them into paying customers by reminding them of the products they have saved in the cart. The best way to recover the cart abandoners is through real-time web and mobile push notifications. These messages pop up on the user’s desktop or mobile screen and prompt the reader to take the next action.

10 strategies to increase the chances of a complete transaction

Having a user-friendly interface, informing the user about the total cost beforehand, offering multiple payment options, and a simple checkout process can help to reduce cart abandonment. You might have implemented SMS marketing and email marketing to communicate with the cart abandoners, but it cannot outperform the instant influence of push notifications.

So, how can you create push notification strategies to reduce cart abandonment?

1. Segment the users

At the outset itself, you should segment the users based on parameters such as:

• The device used (mobile, tablet or computer)
• Browser used (for web push notifications)
• Language of the device or browser
• Geographical location
• Frequency of purchase
• Past interaction of the prospect like products browsed, pages visited, resources downloaded, etc.

Also Read: Why business transformation is important in the digital age

Doing so will help you determine the loyal customers so that you can send them personalized discounts. This eventually leads to a higher engagement rate and more conversions.

2. Add a human touch to the automated push notifications

Batch and blast messages fail to appeal to the customers. According to a study, 31 per cent of consumers wish that their shopping experience was more personalized than it is at present. Therefore, you should draft tailormade push notifications that include the name of the customer and an image or images of the abandoned product. This will help the customer to connect with the message and recognize the brand. An engaging or punny headline will work as an icing on the cake.

Remember, that there is a real person at the other end of the notification who is looking forward to a memorable shopping experience.

Just like you can implement the nine-word template by Dean Jackson in the re-engagement email, you can do so even in the push notifications.

3. Time your push notifications right

It is recommended that you do not send a push notification as soon as the customer has abandoned the cart. This can, sometimes, annoy the users. On the other hand, the customer might make a purchase from the competing e-commerce player if you let too much time elapse after the cart abandonment.

Therefore, it is of paramount importance to send push notifications at the right time. Test and determine the minimum time that you should give the customer to come back. If they do not come back within the estimated time, you can remind them with a push notification.

4. Use the power of urgency

Often, your customers are merely building their wishlists by adding multiple items to the cart. They hope to come back to make the purchase later at a suitable time. Here’s where you can use the power of urgency. Send a push notification to inform the customers about a limited time availability or discount. For example: “The stock is running low. Hurry up.” or “Last 3 hours for the offer to end.”

This strategy creates a fear of missing out and entices them to complete the purchase before the offer slips out.

5. Request for the customer’s feedback and offer help

The cost might not be the sole factor that deters the customer from making a purchase. Technical glitches like website errors and payment failure can also lead to cart abandonment. In such cases, you can ask for the customer’s feedback and offer to help.

You can send a push notification with the contact details and phone number or link to the contact page. The error might have irked the customer, but the push notification can help you win their trust and make the purchase.

6. Incentivize the cart abandoners

Discount offers in a push notification can entice the customer to make the purchase. You can promote a limited time offer that would create a sense of urgency and prompt instant purchase.

For instance: You can send a push notification like “Use DISCOUNT25 to get extra 25% off on your cart.”

Also Read: 8 e-commerce trends to look out for in Southeast Asia 2019

Just make sure that the users do not gamify the system and you do not end up attracting the discount shoppers or impeding the profit margin.

7. Create a series of push notifications

A series of push notifications works the best when it comes to recovering cart abandoners. As the first push message, send a simple reminder that lets the customer know that they have forgotten something in their cart.

The subsequent notification can encourage the customer to complete the purchase with a limited-time discount coupon. The last message will notify the user that the offer is expiring soon. Once the customer makes the purchase, close the push notification campaign.

8. Showcase testimonials from other customers to instill trust

Trust plays a significant role in getting customers to buy in e-commerce as it directly influences their buying intention and indirectly influences the perceived usefulness. Considering this fact, include testimonials or product reviews from other customers in the push notification. This will not only emphasize on the popularity of the product but also build confidence in the customer’s mind. It will ease anxiety and convince him or her to make the purchase.

9. Monitor the frequency of push notifications

Of course, the objective of the push notification strategy is to recover the cart abandoners. But you should not get too salesy. Too many push notifications can turn off the customers and force them to block the notifications or block the app.

Also Read: Honest e-commerce mistakes that piss customers off

In order to avoid this, evaluate your push notification strategy and its performance regularly. Make the necessary changes according to the metrics like view rate, click-through rate, and conversion rate to name a few.

10. Carry out A/B testing to validate what’s working

A/B test the headline, copy, images used, and timing of the push notification to ascertain what’s working and what isn’t. Also, test the push notifications before sending so that there are no grammatical or rendering errors.

Summing it up

To wrap up, target the cart abandoners with the right push notifications and relevant offers. Utilize a push notification platform to improve the cart recovery of your e-commerce website.

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Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

The post 10 ways to get a customer to buy from your e-commerce site appeared first on e27.

The Dublin-headquartered company’s investment amount was not disclosed

Experian, a global consumer credit company, has invested an undisclosed amount in Grab’s latest financing round, making it Experian’s fourth investment in Asia, as reported by Business Times.

The investment also opens a partnership in which Experian and Grab will see the use of technology and data analytics to support Grab’s customised offerings for its users, such as improvement in access to loans for aspiring entrepreneurs in the region.

Experian Asia-Pacific chief executive Ben Elliott said that the partnership also seeks to “improve access to mobility-enabled solutions and financial services for underbanked South-east Asia consumers”.

“Our vision for the future of financial services is that it will be powered by technology and alternative data. We want to transform the way consumers and businesses seek out financial products and services,” Elliot added.

For its Series H round, Grab has said that it plans to raise US$6.5 billion. The round is expected to close by the end of this year and so far has collected more than US$4.5 billion in capital.

Also Read: Naspers unit PayU forays into Southeast Asia by acquiring Singapore startup Red Dot Payment

This year alone, Grab has secured US$1.46 billion from Masayoshi Son’s SoftBank Vision Fund and added another US$300 million from existing investor Invesco, a US-based investment manager.

Among Grab’s other investors in the Series H round include Toyota Motor Corporation, Oppenheimer Funds, Hyundai Motor Group, Booking Holdings, Microsoft Corporation, Ping An Capital, and Yamaha Motor.
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