As your startup expands, so does your impact. But how do you make sure you’re making the right decisions? The impact KPIs you developed in the last chapter give you a data-driven foundation to guide your next steps. They help you track progress, spot weaknesses, and improve your processes where it matters most. Take your time with this step. Research shows that 74% of failed startups scaled too soon. The key isn’t just collecting impact data – it’s using it to grow smarter.
This section is for you if …
- you’ve launched your impact-driven startup.
- you’ve clearly defined your target group, the problem you’re solving, and the impact you want to create.
- your MVP has been tested and validated.
- you’ve mapped out your impact potential, market opportunity, and financing model.
- your structures, processes, and resources are stable.
- you have a plan in place for sustainable business growth.
- you’ve developed impact KPIs and a baseline scenario for measuring your impact.
Not quite there yet?
Then choose the chapter that matches your current stage.
In this section, you’ll learn how to …
- make informed decisions based on your KPIs and data.
- determine if and when your startup is ready to scale.
Make data-driven decisions, step by step
Data is key to making smart business decisions. The steps below show you how to use your data effectively.
1. Analyze your data regularly
Your impact KPIs only matter if you actually use them. Run regular analyses to spot patterns and trends, and compare your targets with actual outcomes. Look for recurring issues or inefficiencies, and rank them by urgency and economic impact. This helps you set priorities and improve where it counts.
2. Get to the root of the problem
To solve issues effectively, you need to understand the causes behind your challenges. Try using the 5 Whys method– ask “why” at least five times to uncover root causes (see “Problem, target group, and stakeholder analysis: Your first step toward launching an impact startup”). Also gather feedback from your team – different perspectives can reveal blind spots.
3. Build strategies to improve your processes
Based on your analysis, develop specific actions to improve. This could include team training, changes in program design, or reallocating resources. Start by testing new processes in small pilots before rolling them out across the organization (see “Putting your MVP to the test: Measuring your startup’s impact”).
4. Keep improving your strategy
Your strategy shouldn’t be set in stone. Review how your actions are working and adjust as needed. Use your KPIs as an early warning system to spot problems before they grow. Create a culture where mistakes are seen as learning opportunities (see “Grow with impact: Team, processes, and culture for impact startups”). True innovation comes from continuous improvement.
Impact and monetization: When and how?
Sooner or later, you’ll face the question of how to translate your impact into financial terms. The Bertelsmann Stiftung has analyzed leading mmpact measurement and valuation (IMV) approaches. Their study – based on expert interviews and a workshop – highlights which methods work best for startups, how to close existing gaps in measuring impact, and what next steps might look like.
Check out the publication (in German only): Fit für die Zukunft — IMV Ansätze
5. Show your impact data clearly and effectively (e.g., a dashboard)
Impact dashboards offer a quick overview of your key KPIs without digging through long reports. They help you spot trends early and make faster, data-based decisions. Dashboards also boost transparency for your stakeholders.
You can build a simple dashboard in Excel or use dedicated tools – choose what fits your needs and resources.
Scaling: Is now the right time?
Before you decide to scale, take an honest look at where your startup stands. These steps will help you assess whether you’re truly ready:
1. Run a quick check
Start by asking yourselves:
- Is your operating model solid and tested?
- Have you proven that your approach works?
- Do you have enough financial and human resources?
- Is your organization ready for change and growth?
- Is there demand for your solution in new markets or regions?
- Does scaling align with your mission and your goal for systemic change?
Tip
Your growth strategy should match your broader goals. A useful rule of thumb: grow only as big as necessary, and as small as possible. Scaling too quickly can be counterproductive. In some cases, building strong networks or strategic assets may be the more sustainable path. And it’s perfectly okay to decide that growth isn’t your priority right now.
2. Review your answers honestly and critically
Take a critical look at whether your startup is truly ready for the next step. If not, identify which areas need more development – whether it’s your team, funding, or operational stability.
3. Make a concrete plan
Outline clear next steps to close any gaps. This might include improving internal processes, strengthening partnerships, or launching a targeted fundraising campaign.
Growth isn’t just about scaling – it’s about evolving strategically. With data-driven decisions, smart process design, and a clear-eyed view of your strategy, you can build lasting impact.
What’s next: Is your startup ready to scale?
By now, you’ve either laid the groundwork for scaling – or made a conscious decision to hold off. Your impact startup is ready to scale if …
- there’s stable demand for your solution (you’ve achieved product-market fit)
- you’ve built a repeatable, profitable business model
- your impact model is scale-ready – with a solution that works and can grow, and a team that can guide the strategy
- your revenue is growing steadily and significantly
- you’ve built a solid, growing customer base
- your team is expanding and investing in skills development
- you’ve successfully completed Series A and Series B funding roundsnds
- you’re shifting your focus from daily operations to long-term strategic planning
Not there yet? No problem – just circle back to to the beginning of the growth phase and work through the key steps again.
If you’ve decided to scale, the next chapter will walk you through different scaling strategies – and help you figure out which one fits your startup best.
Not sure how to move forward? These 6 tips might help.
Tips to get your startup ready to scale
1. Check your product-market fit
Run a detailed market analysis to better understand customer needs. Build detailed personas to define your ideal customers. Keep gathering feedback and adjust your solution as needed.
2. Refine your business model
Reevaluate your business model and see if it still fits your goals and resources. Test different models to find the most profitable one. Use an iterative approach to keep improving.
3. Reassess your impact model
Think about how your new target markets or user groups might affect your impact. Align your product with your purpose – not the other way around. You might also consider developing new products or services.
4. Improve customer acquisition
Create a strong value proposition that clearly highlights your unique benefits. Use social media and email marketing to reach potential customers. Network actively and build strategic partnerships.
5. Focus on growth
Identify your growth drivers and focus on them. Invest in expanding your team and upskilling your staff. Look for ways to scale your impact – like regional expansion or social franchising.
6. Strengthen your strategic planning
Set clear long-term goals and build a detailed plan to reach them. Set up regular strategy reviews to stay aligned and adjust as needed.
Remember: growth is a process. Stay flexible, learn from setbacks, and keep refining your strategy as the market evolves.