What are the growth drivers of start-up firms?
If you are a start-up, then growth definitely isn’t merely an option for you. It is the only way for your survival and one has to ensure that one achieves it or work towards it constantly to succeed.
Growth in itself may mean different for different start-ups based on the stage they are at. For some it might mean an increase in revenue whereas for others it may mean expansion and yet others may see growth as the maintenance of their position in the market. No matter what your start up is looking at, here are some time tested techniques that are drivers of growth.
Also Read: 7 Step Process To Start Your Own Business
Learn from mistakes
As a start-up, you have to absorb lessons from all fronts. Some may be from your experiences in the past and others might be experiences of others that have been shared as research or even word-of-mouth. Either way, it is important to learn and not have a stubborn mind-set that refuses to change. It is only if one is willing to pick up lessons from those mistakes that one can grow one’s organisation and ensure a successful path.
What your consumers are looking for is what definitely turns into the major drivers of growth for any start-up. You need to ensure that the consumer is convinced that they need what you have to offer and what you are offering is the best in the market as well as unique.
Understanding the consumer in such a manner that you know exactly why they need your product is pertinent. You need to get into their shoes and try to see things from their perspective. Apart from this, one needs to collect regular feedback to improve consumer experience as well.
Early Customer Retention
This is something that is very crucial as it is more economical to get existing customers to buy from you than it is to find new ones. A start-up must definitely work towards retention right from the beginning. This is what will bring them back to you and repeatedly buy from you. Retention is even more relevant today in the crowded ecommerce arena where clicks and conversions always seem to be increasing.
People and process
No matter which stage your start-up is at, these are two things that cannot be ignored. One needs to have a team that is good and skilled, a process that works and brings desired results without much setbacks. If you have both of these set, then half the battle is won. Today, it is becoming increasingly difficult to find good people who are willing to take on responsibility and if you already have them then make sure you hold on to them.
In a world where everything is driven by technology, a start-up is no different. It is not only about the use of technology in your start-up, but also the ability to incorporate it in such a manner that you get the best out of it. A process can be optimised with technology and a system may be enhanced by using a particular technology. Therefore, technology is definitely a key driver of growth.
Communication is not only within the start-up, it is also about communicating with the end consumer. In today’s technology driven world, it has become very simple to have an open line of communication with consumers. With Social Media marketing, this is something that has become far simpler and cannot be ignored anymore. At the same time, communication – that is both top down and bottom up – must flow within the start-up as well.
No matter what stage you are in, what is crucial for growth is not just a great idea, but also, a great leader. A leader is one who will see your start-up through when the times are bad and also ensure that he steers you towards the shore. All the other growth drivers will definitely fall into place as long as the leader is a good fit.