Last Monday we had the very last workshop for this first edition of The Collider. This time we welcomed Xavier Sansó, investor, mentor and Finance expert in startups. After leading an initial approach to scalability during the bootcamp, back in December, Sansó came back for an advanced financial workshop.
The discussion was much richer at this point since The Collider teams have quickly moved from paper to reality during a short period of time. The P&Ls have been filled extensively and capital calls are already open and running. Hence, a lesson on scalability was right down our alley, especially considering we’re heading to the third phase of the program (Incubation), where participants will start running on their own more and more.
So let’s recap the highlights of Xavier Sansó’s workshop to grasp a general idea of the “dos and don’ts” in scalability.
Scalability is generally understood as the ability to grow an existing business model. That is done by breaking the foundational limitations, be it geography, market or product-wise while ensuring a real market fit and an adequate balance between cost of acquisition and return on investment. Such requirements are particularly important for a series A investment round; if the company is bound to be small or unprofitable, your chances are if anything scarce.
Sansó highlights 3 steps in the journey to hold a sensitive scalability:
1. Monetization. Understand well your unit economics and the purchase amounts you set upon.
2. Go to market strategy. Measure the customer journey and challenge each step to make it more efficient. When achieving a certain scale, always bare in mind the ratio between customer lifetime value (CLTV) and customer acquisition cost (CAC).
3. Commercialization. Stay sensitive, especially if you have the money, and always align yourself with your client’s needs.
And to wrap up, let us quote LinkedIN’s CEO, Jeff Weiner on his key steps to outperform at scale: “1. Hire the right people, 2.Set them up to be successful (from vision to values) and 3. Get out of their way.”