The big boost: How incumbents successfully scale their new businesses

Corporations can help their new ventures scale up if they avoid these six actions that can undermine success.

 
So you’ve launched a new business, gotten the funding, built a product, and created a brand. But after some initial success, it’s not scaling. What do you do?

If this situation is familiar to you, you’re not alone. In fact, only one in five incumbents succeed in scaling their business after their initial success. That’s not unexpected in the volatile world of start-ups, but it’s a dispiriting failure rate nonetheless—and it doesn’t have to be that way.

Our experience with dozens of companies launching businesses is that more than 60 percent of scaling efforts can succeed. This significant improvement in the rate of success should be welcome news for large incumbents looking for new growth in the facet of unprecedented economic hardships.

We know from past economic crises that businesses succeed by reining in costs and driving innovation. Given the great digital migration that has occurred during COVID-19, that innovation needs to be focused on digital—from direct-to-consumer models to remote services.

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Πηγή: mckinsey