Many business owners, at some point in their company’s evolution, will decide that they want to scale their business – and there are various ways of doing this. In this article, we will discuss specifically how to scale a product-led company.
What is a product-led company?
When we say that a company is product-led, we mean it follows a product-led growth (PLG) business model. In other words, it is a product that is used to scale the company. For this to occur, the company not only needs to have an amazing product that solves a problem, but one that also delivers a great customer experience.
The product must be something that stands out amongst its competitors to win the attention of consumers. In your marketing, you are not simply selling a product, but you need to sell the philosophy and lifestyle represented by the brand.
In this way, your product becomes the vehicle by which you scale your business, driving your sales, customer acquisition and customer retention.
What challenges do product-led companies have?
Perhaps the biggest challenge faced by product-led companies is competition. In highly competitive markets, these companies are in a race to be the first to launch their products and the first to convert users to adopt their products.
Product-led companies must be continually improving and adapting to make their products better, faster, more user-friendly, and so forth. If they are not evolving, they will be surpassed by competitors that are.
How do you scale a product-led company?
First and foremost, your company needs to have a product that is truly great. Not just good – great. Having a great product will not only give you an advantage over your competition, but it will give your company a good reputation and immediate credibility.
To scale your business, you need to take the opportunity to turn your product into a platform – a product that defines the category – a product that simply can’t be copied by inferior brands. Your product needs to gain a reputation as being best in class.
Finally, your company needs to become a leader in the product category. The entire culture of the company must become product inspired as leaders think strategically about the experience that their product delivers.
How to fund your company growth
Scaling a product-led company usually requires capital which can be gained from a number of sources, from loans to acquiring capital. Funding is generally required for research and development, marketing, production, hiring top talent and so forth.
Company founders typically want to retain majority control of their business given they are the ones with the vision, product knowledge, and have grown their company since its inception. At CBGF, we only invest as a minority partner, ensuring entrepreneurs can access the capital they need while ensuring they maintain control of their business, allowing them to see their vision through to reality.
Contact CBGF today.
Are you interested in exploring a minority investment to help you scale your product-led company? If so, contact us today to learn about your options.