From start-up to scale-up – challenges and success factors

The transition from start-up to scale-up is a decisive development step for many young companies - with great potential, but also with new challenges. 

While agility, innovative spirit and speed often dominate the start-up phase, scaling the business model requires above all strategic thinking, resilient processes and sustainable resource planning. Growth not only means more turnover, but also more responsibility: towards employees, partners, investors and, last but not least, the market. In order to fulfil this requirement, a strong management team and suitable framework conditions are needed. Public funding in particular can be an important lever here to enable targeted investments and actively support the company's development.


What exactly is a scale-up?
A scale-up is a company that has successfully completed its first growth phase, i.e. is no longer a classic start-up and is now focussing on rapid, sustainable growth. Typical for this phase are a validated business model, a clearly defined target market and a planned scaling path, for example through internationalisation, technology transfer or production expansion. 

Funding as a decision lever for scaling

Scaling a company often involves large investments, such as for production capacities, staff development, certifications or market entries abroad. This is precisely where funding programmes come into play: whether as innovation grants, low-interest loans or internationalisation funding - they make it possible to reduce risks and implement strategic development steps faster and more securely.

In practice, however, many companies fail less due to a lack of ideas than due to an unsuitable programme selection or inadequately prepared applications. The need to precisely harmonise funding objectives and corporate strategy is often underestimated. Funding programmes often have clear requirements regarding the level of technology, cooperation partners, duration or market maturity. Those who do not take these aspects into account at an early stage risk rejection or inefficient projects. Internal preparation is also often underestimated: without clear responsibilities, reliable figures and a convincing concept, applications stall or lose quality. Timing is another obstacle - many funding programmes have fixed deadlines or competitive procedures in which speed and completeness are crucial.

It is therefore worthwhile for scale-ups to analyse the funding landscape at an early stage and develop targeted structures that ensure both eligibility for funding and the ability to implement it. Funding is not an end in itself, but it can make all the difference in a critical growth phase. Provided they are used strategically and managed professionally.

 

Text: Sten Küster
Boris Buckow

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Boris Buckow

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I am part of the management team at EurA AG and am responsible for our branches in Hamburg, Kiel and Oldenburg. With many years of experience in innovation and funding consultancy, I support companies in developing and implementing strategic innovation projects – from the initial idea to successful execution. My focus lies in the precise selection of suitable funding programmes, the development of robust business models, and strategic business development. What matters most to me is working closely with our clients to create tailored solutions that are perfectly aligned with their specific business situations. I draw on over 25 years of business management expertise, which I now apply at EurA to make innovation visible and to help generate long-term success.
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