It’s a dream of every entrepreneur to see their startup grow and convert into a successful enterprise. But, the reality is that there are many factors and attributes that work together to create a sustainable startup business model, like planning, budgeting, and forecasting. It has to continuously make changes and optimize business processes.
startups to Make their Business Resilient and Competitive
But despite all the efforts, the risk of startup failure persists and raises the question of how to make startups business resilient and competitive.
This article shares some valuable tips for startups to make their business resilient and competitive.
Valuable Tips for Startups to Make their Business Resilient and Competitive
1. Stay abreast with new technology and trends:
There has been a continuous increase in the startup ecosystem in the last decade, and the increase in this trend is due to the development of technology such as cloud computing, automation, big data, etc. It helps startups to reduce operating and infrastructure costs. There are also advanced software solutions like AI software, project management software, remote work software, Inventory management software etc., that facilitate startups to manage businesses with limited resources and increase overall productivity.
Technologies are helping entrepreneurs overcome their reluctance to build startups due to high operating costs or the need for IT infrastructure. Another area where technology can assist startups is while scaling up their business. Scaling up a business is a critical step of the startup journey, and software solutions could simplify this job.
2. Learn from other entrepreneurs’ failures:
Failure, rejections, and setbacks are part of the startup journey, and startup founders must prepare themselves for these challenges. However, one way to deal with it is to learn from other entrepreneurs’ failures. There are many startups that, despite having a promising start, failed in their businesses. Analyzing such business models and not repeating the mistakes they have committed can minimize the risk of business failure.
3. Adapt to change:
Startups must stay agile to respond to market needs. Adapting to change is a positive trait of a successful entrepreneur. There are endless examples of successful companies that started with different products or services and ended with something else. For instance, Amazon was initially an online retailer for physical books, Netflix was a store to rent and buy physical DVD movies, Nokia started as a paper-making company, and YouTube was a dating website.
All these companies have adjusted their business models and transformed to become successful. But adapting to change does not mean that every time business owners need to switch to a new business model. Sometimes business owners have to simply change their approach to the business, like implementing new technologies or platforms that assist in ease of doing business. Startups that are open to new market trends can become resilient and competitive.
4. Maintain the budget:
Budgeting is a critical aspect of startups, and if the startup founders are not clear about the expenses (recurring and non-recurring costs) and source for the funding, it could be a nightmare. There are numerous reasons why startups sometimes exceed their budget, like poor planning of product development, frequent changes to the product, scaling business fast, not monitoring the fund usage, underestimating ongoing costs, not setting up a proper accounting system, etc. The best way to maintain the budget is to secure funding, reduce expenses, and take minimum loans.
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5. Deliver customer value:
In an ever-changing business world, startups can face fierce competition from industry giants. To withstand the competition, startups must expand their customer base by being customer-centric. But it is a challenging task as the customers’ expectations and requirements are frequently changing. Usually, startups offer cheaper services or products to retain customers. It is not a bad idea, but it is not enough when others are implementing the same strategy. Today customers seek a long-term partnership with companies; it is possible only when the company can deliver customer value.
The startup should try to understand the customer’s perspective and deliver the product or services accordingly. They should continuously engage customers by segmenting and targeting them as per their needs. Whether it is a product strategy, pricing strategy, or growth strategy, it should be centralized to customers’ preferences.
6. On-demand process knowledge:
Employees’ knowledge and skills are crucial for startups to succeed in business. However, startups often have a pool of employees with various backgrounds and work experience. Sometimes employees lack the skills or experience required to perform tasks. To make the workforce competent and meet the business process requirements, these employees need to be trained. By providing on-demand process knowledge, startups ensure that their employees have domain-specific knowledge and skills required to perform their functions. Another advantage of on-demand process knowledge is that knowledge transfer becomes easier during the enrolment of new employees.
7. Prepare for the unexpected:
Startups can face unexpected problems like economic downturns, natural disasters, market shifts, etc. Instead of losing ground over these situations, startups should react proactively before it gets too late. Startups should have a contingency plan ready in advance, such as backup cash reserve, take insurance, follow regulatory compliances, etc.
8. Networking with peers and domain experts:
Invest time in networking with domain experts and mentors. They can help business owners to overcome business challenges and keep the business on track. By listening to the mentor’s advice, business owners can minimize the learning curve and avoid potential mistakes they could possibly make while doing business. Some mentors can even turn into investors or help founders to bring investors through their contacts. Many startups fail because they cannot recognize the value mentors can bring to the business.
Startups are important constituents of the economy and can potentially disrupt the business market. In theory, it sounds nice but executing in the real world is a daunting task. There are no standard templates or secret formulas to make a startup business failure-proof since every business has a different set of challenges. However, by following a few tips, startup founders can make their business model resilient and competitive.
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