Today’s businesses face challenges that are much more unique and complex than those of previous generations.
Considering the economic climate that’s constantly changing and major disruptions (both good and bad) impacting various sectors, being able to scale continuously while staying profitable has become more of an art rather than a science.
For startup companies, these challenges can seem even more difficult to navigate, especially when struggling to get a new business idea off the ground and gain the necessary capital to keep it viable through the initial stages.
However, there are a few strategies startups can apply to help make sure their path forward leads to success.
Identify The Real Needs of Your Market
One of the most common mistakes that many new startups make is taking the time to build a great product or service solution, but no one actually wants or even needs it.
Even though you may have a great idea and a plan of attack to make it a viable business model, you need to first spend the time getting to know your potential customers and making sure your business directly solves a problem they’re experiencing.
For example, if you plan on offering home remodeling services in a specific area, you need to be aware of if and why your clients would need your assistance. Is the housing market in their region trending upwards or in a state of decline? Is your target market looking for kitchen remodels or living space expansions for their own needs, or are they simply looking to get their home ready for resale?
Regardless of the industry you’re looking to get into, the more information you can learn about your potential customers, the better positioned you’ll be to align your business model to best meet their needs.
Keep Your Business Adaptable
Startups can be inherently unpredictable. While some can experience viral success quickly, others may have a much more gradual growth path.
The important thing to remember is that you need to make sure the foundation of your business is molded so that it can adapt over time. A rigid business model can often lead to missed opportunities or, worse, loss in revenue and long-term sustainability.
To get to this point, it’s important to collect as much information as you can from your customers. The early feedback you receive can be a catalyst for positive change for your business. Whether it’s making small changes to product features or service offerings or identifying early signs of a shifting market, feedback can be a powerful weapon for startups.
Startup companies should be ready and willing to change course when the data points toward that need. The last thing you want to do is get stuck in your ways and allow your competitors to take advantage of your inability (or unwillingness) to adapt as needed based on your customer’s wants.
Apply a Lean Startup Methodology
Most people have heard the concept “build it, and they will come.” Unfortunately, this statement has lost its relevancy over time as market competition has continued to grow. For startups, the waiting game can be a costly exercise and can even put you out of business if you’re not careful.
Adopting a lean startup mentality is a much more safe and scalable approach to designing a startup business. Being a “lean” startup means you’ve decided to take a much more tactical approach when it comes to the decisions you make for the business and validating your product or service hypothesis.
For many startups, applying a lean methodology all begins with creating an MVP (Minimum Viable Product.) MVPs are the most basic, tangible version of your product or service idea. The concept around this is that it gives you a cost-effective way to introduce your business to the market while reducing your financial risks and giving you the opportunity to validate your business’s growth capabilities.
This type of experimentation is a much safer way to enter a market than going “all-in” on your ideas out of the gate with your fingers crossed, hoping you’ll see a positive return on your investments.
Establish Your Resilience Network
The foundation you establish for your startup business will have a long-lasting impact on its ability to accomplish its goals. One of the most critical components of a great startup is having a strong network of mentors, investors, vendors, and other professional contacts to help you get your business off the ground.
It can be tempting as a new business with few employees to “go your own way” and not be overly interested in the advice or opinions of others. This can be a mistake and often leads to more setbacks early on and a more difficult time unlocking new opportunities. It’s important to work with partners who are willing to work with you and offer helpful advice, especially in the early stages of your business. You’ll likely be able to learn a lot from their own experiences as well as steer clear of potential pitfalls that newer entrepreneurs make when entering certain industries or product niches.
Learn How to Bootstrap
Another term most startup companies will come across at some point in their journey is “bootstrapping.” This refers to entrepreneurs who rely solely on their own resources and the business’s revenue to help it grow.
Bootstrapping can be a highly effective way to help get your business profitable as quickly as possible while also allowing entrepreneurs to maintain full control over their business. However, this process will require high efficiency and creativity to make it work.
To bootstrap effectively, you’ll want to take advantage of as many free or low-cost business tools as possible. This helps keep your costs down and reduces the strain on your capital. You’ll also want to think outside the box when it comes to hiring and retaining staff and solving major business issues.
While bootstrapping can require a lot of hard work, it can help you increase your profit margins and build your business on your own terms without being subject to a variety of investors.
Set Your Business Up for Success
Creating a startup business can be an exciting experience for entrepreneurs. However, in order to give your business the best chance for success, it’s important to take the right first steps. By following the strategies discussed, you’ll be able to make sure your business idea is viable while helping it stay profitable long-term.
Author Name: Dalip Jaggi
Author Bio : Entrepreneur, technologist, and passionate business leader sum up the core of Dalip Jaggi, co-founder of Revive Real Estate, a PropTech company with a goal to democratize house flipping. Since its 2020-inception, Revive has since become the smartest solution for homeowners to maximize their home’s sales value across the nation.