1. Strong business model and good technology
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| Green Business of 2011 |
Startups must have a strong business model and core fundamentals, in addition to great technology. It is only when all three are put into place that a business could consider itself sustainable, robust and resilient.
Let’s take all those dot-com businesses. How many of them made it through to their third, fifth or tenth year? They might have had the technology and knowledge how to operate it but only those with good business model and strong vision for the future are still on the market.
For example, eBay, Netflix and Shutterfly are still in the news when you open the newspaper, although they have to compete with far more popular Facebook or GroupOn. The reason for this is that they did not only fulfilled a real need but also because they took a long-term view of their business and did not pursued "short-term profits" is key to longevity.
It is interesting which names will we remember in another 5 years? Or 10 years?
2. Innovation
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| The very new BMW i8 - born electric. BMWi is a new subsidary of BMW - one of the most respected luxury car manufactures, which never stops to surprise. |
There is never a "finished product", finished process", finished communication" with existing customers. In addition, product and the less popular process development are ongoing processes to constantly challenge the status quo and come out with an offering better than what rivals have.
Constant innovation and finetuning of focus to stay relevant were key to startups surviving the dot-com era. Think Amazon once again.
Amazon had expanded beyond books with Kindle, differentiating itself from Apple's iPad, while Google rolled out Google AdWords, Gmail and Google Apps beyond search and is increasingly competing with Microsoft in the office productivity suite space.
Chances are you are not as big as Amazon and Google and you struggle to apply what is relevant for them to your business model. Then, just look around and listen to your customers and stuff. The waitress that says, ‘I would get orders faster to the table, if I didn’t have to walk around this marble flower pot in the middle of the place’.
Think about this. If she is right and moving a decoration will make your staff more efficient, the service quality better and the customers more satisfied, will you move the pot? Process innovation could be tricky and complex but sometimes it is as simple as that.
Listen to your consumers, too. If you hear twenty people who say, ‘I like the new scarf collection but I don’t know if I would buy anything. Maybe if they were a little more fashion forward, or had that young and edgy twist, then I would buy...’ Well, it is not easy to admit that you haven’t been successful in your last collection. But if it had the power to make your business more successful, would you do this?
Product innovation does not mean that you must reinvent the wheel. Sometimes you can just borrow it. Broaden your horizon and read more, look into different industries, look into competitors’ actions. Perhaps, there is a new type of fabric that you can use or develop more creative way of connecting and understanding your consumers.
3. Start early
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| You and your business are brands for the very beginning. |
‘We think big and launch early," Myriam Boublil, communications and public affairs head at Google South-East Asia says, "organize the world's information and make it universally accessible and useful".
Some startups feel they can afford to "worry about" branding and marketing after the product is up and running, but branding has to start from day one. It is worth pointing out that they need not to invest all their money in fancy colour-leaflets and uniforms. But they do have to be very clear about brand image, values and vision.
The branding message would affect not just an external audience but employees as well. It will affect the way employees and customers see the business – the way they think, feel and do things. And if you can control this, you are on the right way.
4. Customers first
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| ... Or you may simply keep them happy with regular treats that they love, when they want them, how they want them... |
Always understand what the customer or consumer really wants and communicate with them constantly to improve your products and services. This rule summarises the above made points.
Do not forget that you offer solution to existing problem and fulfil a need. You can attribute your success the focus on listening to consumers’ wants, and to and providing them with what they need.
"Only if the solution really works, will they keep coming back for more businesses,"
In addition to Alibaba's mission of "to make it easy to do business anywhere", it believes in "customers first, employees second, shareholders third", Kozlowski shared, adding that success and profitability were outcomes of focusing on customers.
Try to combine sharp business thought with a human touch to personalize the service offered and connect to your customers because at the end of the day people make business and buy from people. If a company is seen as only profit driven, consumers will soon leave it.
5. Increase user base
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| The more, the better! |
Only when everything is properly done, will you be able to grow your audience and consequently business. It is necessary to increase user base at great speed and make sure they "remain sticky" to their product choice.
Loyalty is for Labradors but valuable products, good customer service and reasonable marketing effort grow strong relationships and help you retain customers.
For example, in the case of Google, the company in many parts of the world grew its user base before it had an employee or spent a dollar on advertising. The buzz was mostly generated and sustained in the news, but you are only newsworthy if you have a unique proposition that people want to write about.
In conclusion, it is a lot of hard work. You must be pro-active, passionate and resourceful. You must be ready to invest and go into partnerships. You must be able to listen and hear, to communicate with customers, staff and business partners... you need bags of energy, optimism, flexibility and determination. But it can be done
Source:
Phnea, E. (2011) '5 survival tips for startups', [WWW]. Available from: http://www.zdnetasia.com/5-survival-tips-for-startups-62301678.htm (accessed on 19/10/2011)
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