For a company to be considered among high growth ones, it must consistently record an annual growth of over 20% for not less than three years. Experts measure growth in terms of turnover and the number of employees hired. This applies to startups, whether medium size or large
It leverages high-level technology, excellent innovation, and a highly skilled workforce to thrust it to a consistent profit generation. High-growth startups in developing and developed countries account for about 40% of all new businesses. To invest in a high-growth startup, investors need to consider several things.
Tapping into emerging technologies
High-growth businesses must provide seamless service delivery to customers round the clock. They must create systems that do not experience downtime or problems with user interfaces due to slow-performing applications. This is one big challenge that is continually experienced by traditional business online systems.
Their front end is directly connected to the backend, which presents a host of challenges to the business. Software upgrades and digital transformation processes become a challenge. Any application updates in the front-end must be effected in the backend too. The process is tedious, costly, and significantly affects service delivery.
One of the main emerging technologies in online business is headless e-commerce. Instead of relying on a monolith architecture, it leverages decoupled architecture where the front end is separate from the back end. This ensures fast delivery of services by allowing developers to create unique applications for user interfaces and the back end.
One of the recent trends in headless e-commerce is eCommerce microservice architecture. This technology provides not only a decoupled system architecture but also micro applicants that independently work within the main application. E-commerce stores use the technology to provide a wider range of applications on the front end that connect with the back end through multiple APIs.
Creating a mobile-first e-commerce environment
Any fast-growth business should develop an e-commerce environment that allows customers to connect to the business through various mobile devices. The business person should invest in applications that allow marketers to do content marketing, perform sales, and connect with customers better through seamless backend business processes.
On the other hand, customers should connect with the business backend effortlessly when they are buying, searching for products, making payments, or any kind of request. The backend team should quickly learn purchaser behavior and offer them product suggestions through high-tech applications. These mobile-first technologies provided through decoupled microservices pave the way for a fast-growth company.
Leverage existing off-premise software
E-commerce customer expectations keep evolving all the time. To meet the expectations, the online business must keep innovating new products, applications, and hardware. These three aspects are important in a business, but they escalate costs and could affect proper service delivery.
Instead of developing software and hardware on-premise, a fast-growing company should consider using software and hardware from third parties. When the business person succeeds with these two, they get the freedom to focus on product development and keeping the back end up to date.
Some of the third-party technologies provided in a headless e-commerce architecture are PaaS and SaaS services. The fast-growing business leverages different types of web apps, mobile apps, and other software such as CMS, order processing, cart, and payment software.
Identify the right high-growth company
Every type of company can turn into a high-growth business if it is given the right attention. However, some e-commerce fields are regarded as having better high growth than others. A business person should identify the right business and be ready to invest in the right technologies too.
In current day e-commerce, technology companies are regarded as having high growth. These are companies that make the experience of doing business better by creating easy-to-use applications and devices. They can be remote learning software or customer management software. Other services can be digital advertising, cloud computing, streaming services, remote work applications, mobile devices, and many more.
Invest in companies with minimal competition
High competition limits business opportunities to make more profits. When many businesses are selling similar products, they share customers with many other competitors. Each business gets a small number of profits which makes growth slow. Such a business can take many more years to grow to a top company.
The best high-growth investments focus on companies with minimal competition. Such companies have a wider market and share customers with only a few competitors. They have higher opportunities to make larger sales volumes and maintain consistent growth for many years.
Understand trends that drive fast-growth companies
Fast growth companies perform better because there is a force that is driving them. As long as this force exists, the company will continually record higher growth every year. Many of them grow due to the use of technologies such as modern e-commerce platforms and headless commerce
Most of them migrate from premise-based data stores to cloud-based servers. This migration helps the business to process more data at a greater speed and make use of insights as they come. A lot of high-growth companies use digital advertising, digital payments, and remote work approaches.
Use strategies that drive growth
High-growth companies invest heavily in strategies that promote growth. The main strategy used by most of them is innovation. The company consistently creates new products or improves the products they have. They not only seek to sell in the local market but also in the international market.
They don’t focus on any type of trade that comes their way. Instead, they build specialization and grab every opportunity that comes their way. The markets build a complex but wide network that avails business opportunities all the time. Innovation is excellent, but without the right human capital, a high-growth company cannot excel.
The owner must invest in hiring workers with the right qualifications and skills. If they lack the skills, they should invest in skilling, reskilling, and upskilling strategies. This is one of the main factors that promote consistent growth where the business records high profits every year.
A company is considered high growth when it consistently records high profits every year for a minimum of three years. To invest in high-growth companies, the investor needs to consider several things. They must invest in trending e-commerce technologies such as headless commerce and e-commerce microservices. An investor should seek to understand what is driving the high-growth company and tap into the opportunities. Investing in the right business will ensure the startup begins to grow fast soon after.