How to manage the startup scaleup transition

4 min read

For new entrepreneurs, understanding how to manage the startup scaleup transition can be the difference between success and failure. As we celebrate the recent success of South Summit 2025, we’re going to dive into a comprehensive list of strategies to ensure your scaling transition goes swimmingly.

Imminent plans to grow? Getting ready for when the time comes? We’ve got you covered.

What is a startup scaleup?

For a full definition of the differences between a startup and scaleup, we’ve covered the topic in this article. But since you’re here, let’s take a moment to understand what a startup scaleup really is.

A startup scaleup is in that tender transitional phase where a small, innovative company experiences growth. According to the OECD, this is when startup growth rate reaches 20% annually in terms of employees and turnover for three consecutive years. You can also identify a startup scaleup when it begins to rely on larger, more stable investors due to a scalable business model.

Your classic startup scaleup will transition from more generalist teams to working with specialists who have proven track records in their sectors. Risk is reduced, and long-term strategy gains emphasis over the manic disruption that characterises youthful startups.

What makes a startup scalable?

Now, what makes a startup scalable? Before you go levelling up your business, make sure that you’re fulfilling some important criteria. It’ll provide a good backbone to build around and mitigates unnecessary risk.

1. Company vision

You need a clear and compelling vision before making the jump. Once that’s specified, you’ll have a guiding star for decision-making, business identity and strategy. This sense of purpose is also key for staying innovative and motivating stakeholders and employees.

2. Trusted team

Human capital is of utmost important when scaling up. By creating a collaborative team with diverse skill sets, you’ll ensure a resilient culture through the hard times. The team has to be able to pivot and problem-solve as the market requires—and they should have bought into the company vision from the get-go.

3. Business model

Even if you plan to stay adaptable—which is a good idea—you should still have a sense of the business model that you’re scaling up. That means understanding things like operations, distribution and management. It’s even better if this model includes high gross margins, repeatable revenue streams, low variable costs and a certain amount of flexibility.

4. Financial smarts

This ties in a little with the previous point, though it’s more about keeping your eye on your money. If you want sustainable growth, ensure careful planning and budgeting. By making sure you’ve allocated your resources correctly, you’ll have healthy cash flow and ethical financial habits. This all builds trust and stability in the long term.

5. Scalable marketing

It’s good to be proactive about marketing your business. That means attracting new customers with consumer-focused campaigns. You should make sure you have consistent partnerships that build strong relationships with your customers and build up a loyal base. Then you should be using data insights to reduce acquisition costs and continue driving engagement.

6. Best of tech

Scaleups have emerged precisely because of how easy growth is with new tech. So you need to use tech smartly. That includes leveraging cloud tools, custom software, data-driven systems and AI to boost efficiency. Staying innovative will be key to your scaling success.

What is scale up strategy?

Transitioning from startup to scaleup means taking those useful, primary ingredients and translating them into long-term success.

The main challenge lies in matching the speed of scaling growth without compromising your company’s values. But fear not—we have tips to help.

1. Keep innovating

You can’t lose that innovative spark that set your startup apart from the rest. Keep investing time in hackathons, diverse teams, R&D and new technology to ensure your growing business stays disruptive and competitive.

2. Prioritize talent

As your business grows, so will your need for varied personnel. To match this, you need a good HR strategy that incorporates employer brand, rewards and a positive environment through which your people can grow. That’s the key to ensuring you retain top talent amidst change.

3. Company culture

Expansion risks diluting core values. Clearly communicating mission, modeling desired behaviors, and engaging employees in cultural initiatives help preserve a strong, cohesive company identity.

4. Customer loyalty

Initial traction depends on agile marketing and personal networks. Scaling requires strategic digital marketing, excellent support, and product refinement based on customer feedback to foster loyalty and sustainable expansion.

5. Evolving leadership

As startups grow, leadership must shift from informal, speed-oriented to structured governance. Investing in leadership development and strategic oversight ensures sustainable, guided growth.

How to find success with your startup scaleup

IE University collaborates closely with South Summit, one of the leading forces in Europe when it comes to supporting startups. South Summit Madrid 2025 recently reaffirmed the city’s position as a hub of global innovation, with support from institutions like the Secretary of State for Digitalization and AI, the Community of Madrid and the Madrid City Council. In fact, the event brought together over 430 speakers and 140 investors from around the world—including the King of Spain.

This expertise runs through the veins of IE University’s various schools, particularly IE Business School. Our value of entrepreneurialism means we invest a winning, business mindset in our students. What’s more, we have MBAs and master’s programs for students of all profiles—from recent graduates to executive business people.

Want expert insights to help grow your business profile? Want to be front row at South Summit’s next event in Madrid? Follow the link below and discover what your future could look like.