With thousands of startups cropping up all over the world, the United States takes the lead with well over 70,000 startups, according to Startup Ranking. More and more entrepreneurs are entering the startup sphere with bright new ideas, looking to dominate their respective industries. But even innovation starts to lose its charm when there’s so much of it – saturation can make it difficult to tell one startup from the rest.
That is one reason, many companies fall behind in their first few years. However, there are plenty of startup stories where companies managed to weather the storm of intense competition in their specific industries. Here are a few ways they were able to do it.
Have a Clear Vision
When entrepreneurs have a clear vision of their milestones and achievements, they stay on track. A formally-developed plan will significantly help in building the business and maintaining it. A common mistake entrepreneurs tend to make is that they don’t focus on maintaining their business, instead putting all of their efforts into getting it off the ground.
In the modern age, there are plenty of ways to create a functional business plan. But while it allows every entrepreneur to formulate a business plan, the downside is that having too many options leads to confusion. Consequently, they end up with a business plan that fails to properly outline their goals.
Your Plan Should:
- Articulate the vision
- Understand the market, competition, and overall industry.
- Access the viability of the business idea.
- Acts as a roadmap when launching a business.
- Addresses overlooked flaws.
- Set priorities accordingly.
- Identify what type of talent is required.
Build Organizational Structure
Without designated roles and responsibilities, businesses can only expect chaos. Organizational structure refers to a chart that assigns responsibilities to each employee. It outlines the hierarchy, organizes workflow, and makes sure everything is happening on time. Timeliness is an essential aspect of every business, but in startups, it significantly affects their workload and efficiency.
Startups often lack a dedicated business structure, and it’s often because there are very few people in the initial stage. But to push through a business startup, an entrepreneur needs to offer their employees more clarity, manage expectations, and provide consistency. These are all the makings of informed decision-making, and organizational charts can help with this. They provide a vivid picture of management arrangement and employee training and keep track of the company’s overall direction.
By incorporating an organizational chart, employees and management will work more efficiently, and increase their productivity.
Pay Attention to Customer Habits
Founders tend to hang on to the vision of what their startup could be and should be. However, customers have the ultimate say in what they want from the business. This is why customer feedback and buying habits are really important.
In order to innovate and keep up with the competitive landscape, you must be able to know what your customers value about your products and services. From there, you must be able to offer more of what they love and less of what they don’t want.
This is easier said than done, oftentimes. It is not uncommon for a startup to pursue a business model but later realize that their customers want something different from them. This is why it is important to watch how your customers respond to your offers and product launches. It is also just as important to reach out to your customers and get their feedback on their purchases.
Interact and Broaden Your Customer Base
Your current customers may have knowledge and experience with your product but it is important that you continue to reach new customers. Your startup’s livelihood depends on it.
Social media platforms are essential tools for every startup, yet some business owners may overlook the opportunities it provides. Find new ways to use social media to reach your audience, educate them on your areas of expertise, and offer them value that they cannot resist.
In entrepreneurship, taking the first step may seem hard, but building momentum and staying afloat is even harder. Even so, pushing through business startups is not impossible. After all, if it’s possible to fund a startup even with bad credit, then handling increased competition won’t be an uphill battle. Incorporating these tactics will help boost a startup and help them move towards growth.