The startup ecosystem in India and abroad has never been more vibrant. The rise of technology, access to global markets, and a shift towards innovation have all contributed to the flourishing of new businesses worldwide. According to the Global Entrepreneurship Monitor (GEM), nearly 100 million startups are launched each year, and the entrepreneurial spirit has never been stronger. Illustrating the potential for growth and opportunity, India saw the highest-ever count of 1.85 lakh new companies incorporated in FY24. This represented a 16.35% jump in the number of companies incorporated the previous year, official data says.

However, with this rise in opportunity comes the reality of fierce competition. While starting a business has become more accessible, scaling it successfully remains a challenge. As more startups emerge, the bar for success rises, and those that aren’t able to scale efficiently and sustainably face the risk of being left behind.

What are the most common pitfalls when scaling a startup?

Many entrepreneurs fall into common pitfalls when scaling their startups. These mistakes often stem from the excitement and eagerness to expand, but they can severely hinder long-term success.

Overextending resources

One of the most common mistakes is overcommitting to rapid growth before a solid foundation is in place. This might include expanding too quickly or investing in resources that are not yet necessary. Research from the Harvard Business Review shows that 74% of startups fail because they run out of cash.

Losing sight of the company culture

As startups grow, preserving company culture becomes challenging but crucial. According to Tony Hsieh, former CEO of Zappos, “Your culture is your brand,” and as startups scale, they must find ways to preserve their values, mission, and vision to ensure their company culture does not erode.

Hiring too quickly

Many startups face the temptation of hiring more staff as soon as growth occurs. However, scaling a team too quickly can lead to inefficiencies, confusion, and even disengagement among employees. Every new hire should align with the company’s culture and long-term vision and not be rushed.

Neglecting risk management

As businesses grow, so do scaling risks—financial, market, and operational. Entrepreneurs must proactively identify and mitigate challenges to avoid major setbacks.

No long-term vision

Many startups focus on short-term wins rather than long-term sustainability. Scaling without a clear roadmap can lead to misaligned decisions, wasted resources, and an eventual loss of direction. Startups need to think beyond immediate gains and build a business that can endure market shifts and competition. Initially launched as a simple note-taking app, Notion steadily expanded its capabilities by reinvesting in product development and user experience. Instead of chasing rapid growth, the company focused on refining its core features—flexible workspaces, databases, and collaboration tools—before scaling to a global audience. By maintaining a clear vision and prioritising long-term value, Notion transformed into one of the most widely used productivity platforms, proving that sustainable growth comes from strategic reinvestment and a strong product foundation.

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What does scaling the right way mean?

Scaling is more than just growing in size – it’s about creating sustainable growth without losing the essence of what made the startup successful in the first place. The real challenge lies in finding a balance between sustainable, long-term growth and maintaining quality, culture, and customer satisfaction that builds a solid foundation for future success.

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Take the example of Figma. The design collaboration platform, founded by Dylan Field and Evan Wallace, did not just scale by adding more users or features. They focused on building a seamless, cloud-based experience that empowered designers and teams to work together in real time. By staying true to their mission of making design accessible and collaborative, Figma grew into a market leader, ultimately leading to its multi-billion-dollar acquisition by Adobe. This level of scaling required strategic planning, innovation, and a deep understanding of user needs—lessons that many entrepreneurs can benefit from.

Scaling the right way involves managing cash flow effectively, hiring the right team to handle increasing demands, and building scalable systems to improve efficiency. It also requires maintaining a strong customer experience, ensuring that growth does not come at the cost of quality or satisfaction.

How does the SYB programme help entrepreneurs scale the right way?

This is where the Start Your Business (SYB) programme comes in. The programme is designed to help entrepreneurs scale their businesses without falling into common traps. It equips participants with the tools and insights to build a solid foundation for sustainable growth while also providing a clear roadmap to overcome challenges.

Here is how the SYB programme works:

Leadership development and idea validation: The programme helps founders build strong leadership skills essential for managing teams and company culture. With mentorship and expert guidance, participants learn from seasoned entrepreneurs who have successfully scaled businesses. Additionally, the programme also helps ensure idea validation, helping founders refine their concepts into feasible ventures.

Watch Rolif Cornelio, SYB alumni (batch 31) and COO and co-founder of Speshally NHS Pvt Ltd, share why he chose the SYB programme. He entered the programme with an idea that seemed ambitious but was not feasible in the long run. Through guidance and rigorous business planning sessions, Rolif was able to refine his concept into something both innovative and sustainable.

Financial planning for growth: The SYB programme teaches how to manage financial resources efficiently, especially during periods of rapid growth. This includes developing a sustainable business model, creating cash flow projections, and learning how to allocate resources wisely. Chetna Mishra, SYB batch 22, shares, “Concepts became clear. Got the confidence to approach ideas from the customers’ point of view. Also made us comfortable with finance and valuation, which are important.”

Team building and long-term planning: Scaling a business requires strong teams and a clear roadmap for sustainable growth. The SYB programme equips founders with strategies for effective team building, leadership, and long-term business planning, ensuring they can scale successfully while staying true to their vision.

Akshay Biyani – SYB alumnus – shares his experience

Real-life case studies and alumni success stories: The SYB programme is grounded in real-world examples, where entrepreneurs share their experiences and lessons learnt.

Expert guidance and mentorship: The programme offers guidance from experienced faculty and industry experts who provide actionable advice on how to tackle scaling challenges. The support does not just come from theory but from practical insights shared by leaders who have scaled their businesses successfully.

Scaling a startup is one of the most challenging yet rewarding journeys for any entrepreneur. While the landscape offers numerous opportunities, the path to success is not without its pitfalls. By taking a strategic, methodical approach and avoiding common mistakes, founders can build businesses that not only grow but also thrive.

The SYB programme offers invaluable tools, strategies, and support to help entrepreneurs scale the right way. Whether it is leadership development, financial planning, or innovation, the programme equips participants with the skills they need to overcome challenges and build a foundation for sustainable growth.

For more information about how the SYB programme can sustainably help your entrepreneurship journey, click here.