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Startup Growth Strategy: Lessons from A Series A Startup

by: Seyed Madaeni
Aug 13

As the CEO of a Series A SaaS startup, I’ve learned valuable lessons about entrepreneurship and startup growth strategy.

My team started with my cofounder and me. In under two years, we grew the team to twenty employees. We’ve taken a product from concept to commercialization, brought on more than a dozen customers and raised more than $26 million in funding. Along the way, these are the key lessons I’ve learned about growth, innovation and employee engagement, all of which have been crucial to our success.

Remain Focused and Customer-Centric

Startups are often measured on growth, but growth needs to be carefully managed. I’ve observed that two of the main factors that can spell the end for a startup focused on growing quickly are disorganization and lack of prioritization.

As part of my startup growth strategy, we made it a point to build a scalable business model from day one. So, we instilled systems and processes that were capable of handling increased demand. But the right systems and processes alone aren’t enough to drive growth. In my experience, a focused approach to growth is what drives results.

We’ve struck a careful balance between aggressive expansion and sustainable practices. While it’s tempting to chase every opportunity that comes our way, my team and I have found that by strategically choosing what we want to pursue and what we don’t, we’re in a better position to succeed. No team can do it all, and if you attempt to do so, it can eventually backfire. Instead, prioritize opportunities that align with your company’s core mission and long-term goals—and be ready to adapt as needed.

Market changes and evolving customer needs are a fact of life for any company. Being customer-centric is vital—the more proactive you and your team are regarding those shifts rather than reactive, the better off you’ll be. At my startup, we maintain open lines of communication with our clients. With a relentless focus on our customers, we use their feedback to guide our product development and service offerings. Moreover, when we interact with prospects, we gather information to further refine our product roadmap. Our customer-centric, focused approach has fueled our growth and helped us create strong relationships with our users.

Emphasize Creative Thinking and Experimentation

For a startup to succeed, its leaders and team members can’t be afraid to fail. That’s why successful startup growth strategies include creating psychological safety on your team, which McKinsey defines as “feeling safe to take interpersonal risks, to speak up, to disagree openly, to surface concerns without fear of negative repercussions or pressure to sugarcoat bad news.”

At my startup, we’ve cultivated a culture that encourages experimentation and values creative thinking at all levels of the organization. We believe that failure is a core part of the innovation process. Employees know not every idea will work out, and that’s okay. Instead of dwelling on failures, we celebrate the lessons we learn from our missteps and use them to refine our approach moving forward.

To get employees thinking creatively and more comfortable with experimentation, we’ve invested in ongoing educational opportunities for them. You never know what ideas can be sparked by, say, attending a conference, listening to a thought leader, taking a class or reading a book. Another benefit of ongoing education? It helps us better anticipate market shifts and get ahead of emerging technologies.

Prioritize Employee Engagement

In addition to emphasizing creative thinking and experimentation, a strong startup growth strategy should prioritize employee engagement. In my experience, building a strong company culture where employees can thrive can be tough, and it’s arguably more challenging now given the remote and hybrid work environments of today.

Creating a culture where employees feel engaged requires being intentional.

To increase employee engagement, we’ve put communication and transparency front and center. We regularly host all-hands meetings, where everyone gathers to learn about company updates, celebrate wins and openly address challenges. Because employees aren’t left in the dark, they have trust in each other and our leadership—and they understand how their work plays a role in our larger goals. As for remote employees, we encourage them to travel to our headquarters every quarter or so to collaborate with colleagues in person.

Another key way to cultivate employee engagement is to invest in their development. Employees have personal and professional goals, and the more an employer can help them reach those goals, the better. We provide our employees with clear career development trajectories—and give them the time off and funding they need to attend industry conferences and educational events. I believe that when employees feel like they’re working at a place that’s helping them reach their goals, they’ll be more likely to stay and become the future leaders of that organization.

Additionally, startup leaders should make sure they’re creating a work environment where employees can have a good work-life balance. A lack of work-life balance can lead to burnout and disengagement. Some steps we’ve taken to encourage work-life balance are offering flexible working hours and encouraging employees to take time off to recharge.

Startup Growth Strategy Rule #1: Keep Looking Forward

There are many challenging (but also exciting) days when you’re leading a startup. One of the biggest challenges, I’ve found, is handling rapid expansion. As we’ve scaled, we’ve had to quickly adapt our infrastructure, update our product and refine our processes.

Ultimately, a successful startup growth strategy requires leaders to stay focused on their vision and customers, nurture their team members, embrace innovation, and never stop learning. It’s perseverance, adaptability, and a great team by your side that can help you turn your startup dreams into a reality—and make a positive impact.

This post was originally features on Forbes Business Council.