Shifting from Startup Dynamics to Enterprise Culture

Small businesses don’t transform into large enterprises overnight. It’s often a slow process built on solid operational practices and a growth-oriented mindset. Building the components of a growing business takes a lot of effort. Many entrepreneurs and startup founders are surprised to discover that one of the toughest adjustments is mental.

The shift from startup to full-fledged company happens when founders stop thinking like a startup and start thinking like the CEO of a major company. You might not yet have the sales, revenue, or customer base of these large corporations, but that shouldn’t prevent you from adopting a similar mindset. Forward-thinking is what bridges the gap between where you are and where you want to be.

Many founders get stuck in a survival mindset. In a small business, every dollar matters, and every task seems urgent. Startups are always hustling to gain market share and boost sales. However, if you’re constantly putting out fires, you won’t have the time or energy to think ahead.

Forward-thinking is about recognizing your current struggles and setting up long-term strategies to overcome them. It’s also about setting long-term growth goals to have benchmarks to aim for.

Take sales, for example. Every small business owner focuses on growing sales. Did this month’s sales surpass last month’s? What’s your year-over-year growth? What percentage of your sales are one-time versus recurring? These questions are important but they look backward. While analyzing past data is valuable, its true worth comes from using it to plan ahead.

– Based on your sales over the last four quarters, what should your sales target be for the next quarter?
– Based on last year’s recurring revenue, what should this year’s target be?
– If you’re currently at $X annual sales and want to reach $Y in annual sales, what’s the growth percentage required?

Looking ahead helps you set goals and work backward from them. Instead of just trying to beat your previous performance, you’re setting a course for where you want to go. This approach should be applied to all areas of operation for strategic growth.

As a startup founder, you wear many hats. One day you might be handling marketing, the next HR, and the next, finances. This flexibility is crucial in the beginning, but as your business grows, you need to phase out of doing everything yourself. If you spread yourself too thin, you won’t focus efficiently on anything. Eventually, you need to adopt a CEO’s mindset.

A CEO focuses on keeping the company growing and provides high-level direction for the leadership team to execute. There comes a time when you need to invest in leadership and delegate tasks to trustworthy team members. If sales and marketing need attention, hire an experienced CMO. If finances become complicated, bring in a CFO. For consistent hiring needs, get an experienced HR director. Delegating tasks to specialists allows you to focus on overall growth.

A crucial part of moving away from the startup mindset involves self-reflection. Identify your strengths and weaknesses. Use your talents to compensate for your weaknesses. Some founders excel at problem-solving, others at sales, team building, or finances. Focus on your strengths and remain involved in that part of the business. For areas where you’re less competent, delegate but continue to learn from those who are better at it.

The key takeaway is that good leaders know their strengths and weaknesses. They leverage their strengths to grow the business and delegate where necessary.

To grow, you need to think big. If you always see your business as a struggling startup, it will stay that way. If you envision it as a future Fortune 500 company, you’ll be more likely to achieve that goal.

It all starts with mindset. We all begin as entrepreneurs with a vision. What makes us CEOs is our ability to think bigger. It starts in your mind, with a shift in perspective.