When the internet first became a household name, it affected all knowledge and how people learn. As a result of the internet, there was a shift in the economic sector, establishing a new business type: the startup.
What is a startup?
A startup is a newly established company that tends to take advantage of technological and innovative resources to grow in a short period. They generally adapt to all the necessary resources and tools offered by the internet. This helps promote the development of new technologies, as well. This reduces costs, as well as increases production.
Startup creators need to have a clear, original idea, investors, and a strong team of people to move the company forward. Additionally, they must understand the market they are aiming for and the products and services they are interested in. This will allow startups to come up with an appropriate acquisition strategy.
There are also so-called spin-offs, which differ from startups. Products are created from a parent company, which may or may not participate in its financing. Their work can be complementary to the parent company.
The Lean method
The so-called lean manufacturing method, created by Toyota, was designed to efficiently and effectively use their employees’ capabilities. Its basis is to understand human factors as a value within the productive process. This theory clashes with the traditional method, Taylorism, in which people are considered as one more resource, without taking into account their human condition.
Applying this methodology to a startup is known as a lean startup. It introduces the concept of learning within decision-making, where humans’ decision-making is perfected by adding circumstantial factors. Therefore, the experimentation of different strategies, which emerge while acquiring experience, is the system’s fundamental pillar. To achieve success, it is necessary to take the leap into the void and try different strategies, taking advantage of the market changes.
Lean startup gives priority to action and feedback with customers over strict sales policy based on theory and intuition.
Establishing an effective customer feedback system is essential. It plays a critical role in the product innovation process. To make this method effective, it is suggested to offer customers an effective way of communicating with companies.
Growth strategies for your startup
Launching a new company on the market is a challenge. According to a study by Harvard University, 75% of startups fail. Why? According to Professor Thomas R. Eisenmann, “Most startups fail not because they can’t build the product they set out to build, but because they build the wrong product, take too long to do that, waste a lot of money doing that, and waste a lot of money on sales and marketing trying to sell that wrong product.”
Although there is no infallible formula that guarantees success for your startup, there are a series of strategies that are key to improving the growth of a business:
1. Product diversification
Although it is evident that startups do not have large amounts of economic resources initially, it is important not to start depending solely and exclusively on a product or service for financial gain. Instead, have at least a few services or goods to offer to reach a larger market.
Your services should make sense. This means that companies that know what they sell and how they relate will have a higher yield and income than those that sell products or services that have nothing to do with each other.
When we talk about offshoring, we mean the possibility of displaying and selling products to different markets from nowhere in particular.
Today, many companies no longer have a physical location where they sell their products. However, reaching an audience located in different places is not complicated, thanks to the resources offered by the internet. This includes eCommerce, social networks, or corporate websites.
However, using global strategies must be carried out prudently. It is not possible to successfully cover the entire world from the beginning, but you may cover a national market. Later on, the product can diversify into one or more specific countries, depending on their market demands.
3. Use of technology
One of the fundamental characteristics of startups is their use of new technologies. They must take advantage of the technological resources to optimize resources, reduce costs, and gain productivity.
All these technological advances will help your company gain more profit from automated management tools to virtual communication systems.
4. Study the competition
It is vital to conduct a preliminary study of what techniques your competition uses and how they achieve their objectives, i.e., increasing their income.
It is essential to prioritize your company’s position in the market and, of course, try to achieve market domination to attract customers.
But this process is not just necessary at the beginning but throughout the entire process. Considering your competition and being aware of their actions will improve your business in the long run.
5. Monitoring results and assumptions of risks.
The best way to improve services is to learn from one’s mistakes. Monitoring the results, you are achieving within specific periods will force you to reflect on the strategies carried out. You may propose new methods to achieve your objectives if you notice that one of your strategies is not working.
6. Quality customer service
Any potential customer may have questions about your products, want to know how to purchase online or have comments or suggestions. Attending these clients and offering them personalized attention is vital. This can be done with something as simple as a fixed virtual company phone number, a chatbot, or a click-to-call button listed on a website so that they can call you directly from your website. Small, simple, yet highly effective use of new technologies can substantially increase your customer service quality.