Success needs courage, ambition, instinct and time to look ahead

An established business seeking to scale up has the advantage of at least some systems and procedures in place to support its ambition.

But a small scale-up business won’t always have that luxury. A very young company may have hit on a fantastic idea early in its existence and must ride the wave to take advantage of the opportunities, or lose them forever.

So how can they help themselves to succeed? Dale Williams, Partner at

Cheltenham law firm BPE, says they need courage, ambition and instinct, and at least one person in the business with the time to look ahead.

“Some will panic and draw back, but the really entrepreneurial will go hell for leather and take the risk. They’ll often have people like me urging caution – which is what we’re here for, but those most likely to succeed will have a natural understanding of their market. The decision will come down to their risk appetite.”

Lessons from LOVEFilM to Mothercare ...

Simon Calver is Head of Investments at the Business Growth Fund (BGF), the independent investment company backed by the UK’s biggest banks.

Best known for his seven-year tenure as Chief Executive at LOVEFiLM, which sold to Amazon in 2011 for a reported £200 million, he become CEO of Mothercare plc, kickstarting the troubled retailer’s turnaround plan and driving its international expansion.

Simon grew up in Gloucester and earned his first wages while at school, selling matchday programmes for Gloucester Rugby. He joined BGF last year to lead the Fund’s investment into scale-ups.

How does a business scale-up?

“A company must have the right leadership skills at all management levels. It’s about investing in talent within the business, sharing knowledge across the company and directing the passion that you get in the start-up phase.

“Put in structure. A small business will usually be driven by the founder. But as it grows, the founder must learn to delegate. “Strategic prioritisation is essential. Where do you want your business to go next? Have you got new products? Do you want new customers or is overseas expansion your goal?

“Focus becomes very important. Ambitious businesses often want to do everything. They can’t. Decide how you want to grow, then focus on that. Don’t be afraid to say no to opportunities if they don’t fit your vision. Build flexibility and adaptability into your plans.

“Balancing business priorities is essential. Look after the customers you’ve got while going out and getting new ones.

“Development capital will usually be essential, for example, to help manage cashflow as you hire new people ahead of the growth curve, or to make capital investments. But money alone won’t help a scale-up succeed unless it’s got the right management structure, trained its people properly, developed a realistic growth strategy and put in place the systems and procedures to support that ambition.

Dale says it’s all about having the right people – agreeing with Simon Calver’s remarks below. It’s also about not having the wrong ones.

“For instance, the very bright person whose idea helped them spin out a business from their university may well not be the right person to make that company commercial.

“Senior employees who find change a threat could also be a challenge for ambitious businesses.”

“Re-evaluate your progress and ambitions on a quarterly basis. Be honest about what’s working and what isn’t and do something about what isn’t.”

Simon quickly learned from his mistakes. LOVEFiLM was a little later to streaming films than it could have been, having first invested in digital downloads. It soon caught up and by the time it sold to Amazon, the service had reached two million subscribers and become the leading online DVD rental and streaming service in the UK and Europe. LOVEFiLM’s technology remains the foundation on which Amazon Prime Video operates today.