There are plenty of bullets. Crypto is a tough market to be in, not least because of the volatility, but also the added pressure of being able to scale your business at a speed. As a co-founder at Fiat Republic, I am at the crossroads of crypto and fintech, and so I’ve experienced firsthand the expectations placed on you to scale fast and scale efficiently.
However, I’m also fully aware of the pitfalls of not scaling intelligently. SVB, Silvergate, Three Arrows… 2022 and 2023 were littered with casualties; crypto platforms that either scaled too quickly, or didn’t have the infrastructure in place to deal with customer demand. Scaling is difficult. Make sure you do it right. Here is what I have learned from our members at Fiat Republic:
Build on solid foundations
Crypto is built on tech, and the infrastructure you have for your platform is the bedrock of any crypto business. It must not only be robust to handle increased transaction volumes, but also flexible to adapt to the diverse needs of various clientele. Investing in scalable technologies and processes ensures that the business can grow without compromising efficiency or service.
Know your risks
Cybersecurity is non-negotiable. Implementing advanced security measures, conducting regular audits, and penetration testing are vital for protecting against threats, a concern heightened by the recent funding declines and market uncertainty. On a less technical level, protecting your business against market volatility is essential. Strategies such as asset diversification and hedging can counteract potential losses, crucial in a period where funding and market stability are uncertain.
Ensure compliance
Regulatory compliance builds trust and credibility, crucial for accessing traditional financial services and fostering long-term relationships. It’s key to navigating legal risks and provides a framework for managing other risks. Compliant operations facilitate market entry into different regions and appeal to institutional investors, an important factor during periods of reduced funding and increased scrutiny.
Focus on your personnel
Structured hiring processes are essential to combat biases and ensure that the right people are brought on board for the right roles. Understanding the exact needs of a role helps in avoiding overhiring, which is crucial in a market where resources are more limited. Avoiding the pitfall of equating company growth with simply adding more personnel is crucial. Scaling down doesn’t necessarily equate to reduced effectiveness; sometimes, smaller teams can be more efficient and adaptable.
Create an inclusive company culture and offer flexible work arrangements; these are essential in attracting diverse talent and increasing productivity of your existing workforce. Maintaining company values amidst rapid growth is vital. Look to continuously upskill your existing workforce – at Fiat Republic, we prioritise staff training to avoid complacency.
Create a customer-first platform
In a climate of decreased funding and market scepticism, understanding market needs and developing USPs through direct engagement can be a lifeline for a crypto business. Efficient customer support and regular community interactions foster loyalty and trust, crucial in a period where businesses need to maintain a strong connection with their user base despite financial constraints.
User experience (UX) is critical in scaling. An intuitive, user-friendly platform caters to a diverse range of users, from beginners to experienced traders, and is fundamental for accommodating a growing customer base. In times of funding cuts, as reported by Crunchbase, focusing on UX can be a cost-effective way to retain and attract users without extensive investment.
Understand your revenue streams
There are a number of ways you can increase revenue streams, but the two that standout are additional product offerings or launching in new territories. Integrating stablecoins and diversifying revenue streams, such as through lending, staking, or premium services, are a great way to upsell to your existing customer base. The majority of more sophisticated crypto investors need choice, and so diversifying your range of crypto assets is another key factor in creating a bulletproof business – your customers will go elsewhere if you don’t have what they want.
My key takeaway is this; the crypto industry isn’t slowing down any time soon, and neither should your business. Everything, and everyone in your organisation needs to be flexible and scalable, whether it’s tech infrastructure or talent. If you can’t do it internally, then look to use strategic partners who have the expertise to do so. We partner with crypto providers to give them access to crypto-friendly banks, and solely focus on payment rails. If you’re looking to hire, perhaps outsource to a recruiter or tap into your existing networks on LinkedIn. These partnerships provide essential support and can open doors to new opportunities and markets, which is especially important in periods of funding downturns as observed recently.
