Technology startup founders are pushed to gain venture funding in order to accelerate to “internet scale” as fast as possible. Yet to succeed with this hockeystick scaling strategy requires access to increasingly large rounds of capital, rapid growth of the team, and a very favorable environment. Even so, few who follow this venture capital model scale large enough to provide an exit with sufficient gain for the investors and founders. The Momentum Scaling strategic framework provides a roadmap for startup founders who want to build sustainable, scaleable and profitable businesses they can be proud of. For more information: Davender Gupta The Scaleup Project davendergupta@thescaleupproject.com 514-296-6288 http://thescaleupproject.com (c) 2018 All rights reserved, The Scaleup Project

1. Momentum Scaling 101
BUILDING THRIVING BUSINESSES
A new strategic framework
to grow your innovation
into a business to celebrate.
DAVENDER GUPTA, MS, MBA
SOVITA CHANDER

2. Technology startup founders are pushed to gain venture funding in order to
accelerate to “internet scale” as fast as possible.
Yet to succeed with this hockeystick scaling strategy requires access to
increasingly large rounds of capital, rapid growth of the team, and a very favorable
environment. Even so, few who follow this venture capital model scale large
enough to provide an exit with sufficient gain for the investors and founders.
INTRODUCTION
Be patient for growth and impatient for profits.
– Clayton Christensen
Getting more cash and hiring more people is not sufficient to create sustainable,
value-generating business growth. You must first develop the credibility and
capability to translate your innovation into a solution of real value to your first
customers, so they understand the power of your offer and open their network to
you.
Scaling is risky. Most ventures do not make it. Although technology may scale
quickly, scaling people is much more complex.
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3. Many startups with innovative technological
solutions do not meet the criteria for conventional
venture capital funding. Yet these startups can add
real value to markets.
By following a more appropriate scaling strategy,
bootstrapped startups can grow into value-
generating businesses.
GROWTH FOR THE REST OF US
Outside of the VC-fueled startup world, high-
growth businesses are defined as those who
experience sustained growth in revenue or
headcount of at least 20% per year for three
consecutive years.
This perspective, an essential component of
Momentum Scaling, resets the expectations for
successful scaling by bootstrapped startups to a
level where growth and risk can be more
effectively managed.
A DIFFERENT METRIC FOR
HIGH-GROWTH VENTURES
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4. A successful strategy framework for scaling
bootstrapped startups should meet the
necessary criteria of being Suitable, Acceptable
and Feasible.
Bootstrapped startups, beyond the need to be
resource-efficient, also need to be highly agile
to capitalize on unforeseen opportunities. The
strategy framework should therefore add the
criterion of Effectual, where you iterate
towards a solution which minimizes risk,
manages uncertainty and maximizes options for
action.
INTRODUCING SAFE
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MOMENTUM SCALING
Momentum Scaling is defined as a deliberate,
resourced, structured and time-bound process
to develop the ability to execute and the
credibility to attract customers who recognize
the value of the offer and who are ready to buy
Momentum Scaling is a decision-making
framework to help you address the right
questions at the right time.
There are four main tools to guide you:
Lifecycle Wave Model
Scaling from market entry to market leadership
is done in three waves:
- Establish market credibility
- Establish ability to execute
- Establish positive cashflow
Go-To-Market Phase Model
Each wave consists of five phases in
time: preparation, beachhead, surge,
consolidation and maturity
Operational Dimensions of Execution
Nine operational dimensions provide
appropriate perspectives to generate, manage
and direct growth.
Decision Matrix
A decision matrix brings together the key
questions and criteria to guide critical choices
at each stage of scaling.
MOMENTUM SCALING FRAMEWORK:
4 MAIN TOOLS
Lifecycle Wave Model
Go-To-Market Phase Model
Operational Dimensions of Execution
Decision Matrix
Sound strategy starts with
having the right goal.
― Michael Porter

5. Each wave is characterized by five distinct
phases where the business model and strategic
priorities evolve:
Preparation: Ensuring the startup is ready to
scale, identifying the initial “beachhead”
market.
Beachhead: Entering the initial market, booking
several Reference Clients which give the
startup legitimacy with early mainstream
customers.
Surge: Using the reference clients as referrers
to increase market share quickly.
Consolidation: Focusing on execution
efficiencies to make the venture revenue
positive, establish the venture as a price or
feature influencer in the market.
Maturity: stabilizing the organization and the
market share and preparing for the next
scaleup wave.
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LIFECYCLE WAVES
Traditional scaling models assume you grow by
doing more of what you're currently doing, but
with more resources and more customers. This
is like believing an adult is just a jumbo version
of a baby.
In reality, scaling is a step-by-step process
where your product, your business model, your
team and your systems evolve based on the
interactions, partnerships and discoveries you
make with your customers and the market.
Momentum Scaling defines three main waves as
you scale from developing your technology to
deploying it in the market:
H1: You build credibility by finding reference
clients and reference projects which enable you
to fully understand the value created by your
innovation in your customer's everyday life.
H2: You develop capability in a disciplined and
controlled manner. You want your capability to
lead demand, by picking high-value clients
which collaborate with you to open up your
market.
H3: You grow cashflow by optimizing your
margins and seeking efficiencies. Cash from
customers is the least expensive and most
valuable source of growth capital.
The end-goal of Momentum Scaling is that you
develop the credibility and capability to be a
market influencer.
GO-TO-MARKET PHASES
TWO CRITICAL QUESTIONS
Value Creation Hypothesis: How does your
solution deliver value to the customer?
Value Capture Hypothesis: What is the
customer’s motivation to invest in your
solution?

6. Focus on the long term,
and always do what's
right to grow the
company and not make
short-term decisions.
And outlast everyone.
VALIDATION
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OPERATIONAL DIMENSIONS
Momentum Scaling maximizes your ability to
execute by directing your attention to nine
operational dimensions:
GENERATE:
HOW DO I CREATE GROWTH
Market: How do I build credibility to attract
customers who understand the value of my offer
and who are ready to buy?
Product: How do I create 10x value for my
customer?
Business Model: How do I increase the value I
create and deliver to my customer and capture
for myself?
MANAGE:
HOW DO I MEASURE AND RESPOND TO
GROWTH
Cashflow: How do I build sustainable, abundant
and resilient streams of cashflow to fund
growth?
Actions: How do I measure and manage
sustainable and robust growth?
Team: How do I build and coordinate the team's
ability to support growth?
DIRECT:
HOW DO I LEAD AND SHAPE GROWTH
Leadership: How do I develop the ability
to quickly make decisions which drive growth?
Entrepreneurship: How do I continuously learn
and innovate in order to be resilient?
Positioning: How do I integrate into the existing
value creation ecosystem to influence it in
the direction I want?
The initial observations which led to the
creation of Momentum Scaling were done
through a meta-analysis of documentation on
high-performance startups.
Preliminary validation of the Momentum
Scaling framework was done through 23
coaching sessions and presentations to three
forums in October and November 2017.
A survey sent to our network of approximately
200 Montreal-area technology startups
generated 45 responses, which support the
need for an alternative strategy framework to
guide non-VC funded startups to enter their
first market and to scale.
― Adam D'Angelo, Co-Founder, Quora
DECISION MATRIX
The Momentum Scaling Waves, Phases and
Dimensions provide a roadmap to consider the
appropriate questions at the right time, so you
can make sound decisions which lead to
sustainable and scaleable results.

8. The Scaleup Project
A GROWTH CONSULTANCY
We help innovators grow thriving businesses based on the
technology they have built, sweated over, and MVPed.
Through workshops, coaching, consulting and custom
engagements, our Momentum Scaling Framework can help
you take your technology out into the world and build a
business you can be proud of.
DAVENDER GUPTA, MS, MBA, CO-FOUNDER
Nationally recognized biz coach, speaker and investor with an
engineering and project management background. Grad of
several universities including an Executive MBA from McGill
and HEC Montréal. Davender likes framing the big picture.
SOVITA CHANDER, CO-FOUNDER
Experienced tech marketer, facilitator, startup founder, and
business and community board member. McGill grad. Fortune
500 healthcare alum. Sovita likes getting into the details.
THESCALEUPPROJECT.COM
©2018 The Scaleup Project. All rights reserved. Rev 180305

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