Growth-stage tech: Where serious contenders gain momentum

Build stature in the market with sales, scaling and automation

Jun 02, 2023

Key takeaways

New offerings and sales channels are key to gaining new customers. 

Don’t neglect upselling or selling new products into your existing base. 

Make sure your back-office operations keep up with growing needs.

Technology industry

Your technology venture is less about investors and financing now and more about sales. Your product or products have shown their mettle, and people are more aware of your company and what it has to offer. Growing the customer base is becoming ever more important as you look to fund new staffing, continued R&D and future expansion—and keep well ahead of customer churn. The key will be a focus on scaling up your sales team and equipping them with the right tools and processes to support continued sales growth.

In scaling your technology and processes, you're ultimately building that governance and process automation up front in a CRM or CPQ tool. That information feeds down to the back-office technology, primarily from the ERP and other applications around the ERP.
Chris Zak, Principal, Technology Consulting, RSM US LLP

Key considerations for tech company success in the growth stage

At this stage of the business lifecycle, most technology firms are focused on driving sales growth, maintaining the customer base and selling into that customer base. Among the specific concerns:

When companies invest in customer success, professional services and building a more optimized delivery model, they improve customers’ adoption and experience—in turn, this enables greater upsell potential and makes customers less inclined to churn.
Paul Morgis, Manager, TMT Industry Advisory, RSM US LLP

Additional considerations

With organizational growth, much of your effort revolves around the customer base, but don’t forget the work environment. In particular, don’t forget the people—their cohesion as a whole and as individual teams, as well as their overall satisfaction, matters to your success.

  • Make sure you are hiring the right people and ensure that new staff has the skills to carry the company forward into expansion and exit stages.
  • Consider ways to streamline your onboarding processes and to take some strain off existing staff in training new people. This could include the creation of training videos that explain various systems and how to troubleshoot them, outline performance expectations and more.
  • For key functions, continually evaluate whether these are best fulfilled under an outsourced, co-sourced or in-sourced model.
  • Analyze and update total compensation to ensure compensation programs are competitive and scalable to attract and retain talent.
  • Ensure that incentives and compensation are aligned with strategic goals.
  • Keep the company culture intact, but also look for ways it might evolve with the growth of the company.

Explore the four stages of the technology company lifecycle

Focusing on core functions while prepping for growth.

Build stature in the market with sales, scaling and automation.

Maximize value while prepping for exit, IPO or other late-stage goals.

Effectively manage your gross margin, access, and supply.

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