Startup Genome Report Extra about premature scaling can now be read in Russian

Startup Genome Report is a huge report based on an analysis of 3200+ startups from around the world. It consists of a huge number of graphs showing the similarities and differences between successful and unsuccessful startups.
Recently there was a great addition to 60 pages that for startups that start quite successfully, the main reason for the final file is premature scaling. That is, when a startup begins to expand, without being ready for it.
This report is now available in Russian, read and download it here .
The first version of the report, also translated into Russian, is here .

This is the first version of the translation, we will be grateful for feedbacks, etc.

Briefly squeezing signs that the project is still too early to scale in terms of the level of development of different areas:
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Consumer

• More money is spent on attracting customers than on matching the product to the market and on a repetitive scale-up business model;
• The lack of conformity of the product to the market is being replaced by the development of the company's marketing and cooperation with the press.

Product

• A product is being created, but there is no willingness to solve emerging problems;
• Investing in product scaling before the product is ready to meet market requirements;
• Additional features are added that the product "would be good to have."

Team

• Companies hire too many employees in the early stages;
• Companies hire specialists without their critical scrutiny: finance directors, customer service representatives, software specialists, etc .;
• Companies hire managers (managers, product managers, etc.) instead of hiring performers;
• A multistage hierarchy of subordination is created in the company.

Financing

• Too little money is attracted for development;
• Attracted too much cash. This is not necessarily a bad sign, but usually it relaxes entrepreneurs and makes it possible to start scaling up other areas prematurely, for example, to hire more employees and develop more and more new products. The situation when companies attract a large amount of money is also more risky for investors than if investors had invested sufficient and necessary amount of money in the company and looked at how it would develop.

Business model

• Companies are focusing on maximizing profits too soon;
• Too careful planning, implementation of projects without evaluating the response;
• Companies do not adapt the business model to changing market conditions;
• Companies fail to focus on the business model. They discover that they cannot lower the costs during the scaling phase.

We will be happy if the report is useful to you and your project.