The unexpected events of 2020 have made the US economy become such a roller coaster ride.
Roughly, more than 55 million Americans filed for unemployment along with bankruptcies. Thus, leading towards a 31.7% decrease in GDP in the 2nd quarter of 2020. Nevertheless, following the massive unemployment, 1.1 million applications for new business were recorded in mid-September 2020.
As various new businesses arise, a new challenge appeared. How to successfully sustain those businesses?
Most of the businesses are struggling to survive in the Startup Phase. Facing challenges, self-doubt, turbulence, and even the adjustment problem will lead to an unpleasant ending for the business.
A lot of articles on the internet talk about the five stages of business growth. This article will help you to figure out how to conquer the challenge in the startup phase. Also, to guide you in preparing your business for the next phase.
In the startup phase, numerous demands are available. With the number of varieties, some of them might not fit the business’ plans and your vision. Hence, your business doesn’t have to fulfill all the demands.
Identity building is very crucial to your business. This is where you decide how do you want people to know your business. This moment is when your vision is challenged. If you insist on fulfilling all the available demands regardless of their relevance to your business, it might be harmful. Your business will lose its identity, and without a clear vision, you can hardly picture the future of your business.
The more you try to fulfill the available demands outside of your vision, the less you’ll be focused on each of the products. And most importantly, you will have more competitors. That is why you have to avoid biasing. Stay on your track and focus on your vision.
You will have various benefits after building your business’ identity. You will be able to identify your competitors, hence forming a strategy to promote your business better. There is another benefit after you decided on your business’ identity. You will be able to conduct market research to find new clients’ prospects and reach out to them. According to Forbes, the business survival rate until the last stage is 10%, while most of the business failed during the Startup Phase. Some failed because of the lack of preparation, failure in budgeting, worse management, etc.
But 42% of small businesses failed due to their failure in finding the right market. Therefore, the biggest challenge of surviving the Startup Phase is reaching your market.
Like the aforementioned, many small businesses failed due to their inability to find their market. It was either caused by the lack of market research before starting their business or their inability to reach the potential market.
What’s the point of knowing that there’s a market for your business if you’re not reaching out to them? And then, how to reach out to them and let them know that your business exists?
Marketing strategy is what you need. There are a lot of components in marketing that you have to face. From the variety of digital marketing platforms until the available market according to various aspects: age, gender, education, etc. You need to review your marketing strategy if your business’ growth is stuck in certain numbers or if you wish to expand your business to reach the larger market.
This is happening not only to the small businesses but also to the midsize businesses. In some companies, they don’t have advanced marketing officers. One of the solutions is an outsourced CMO. A chief marketing officer (CMO) will guide you through the process of growing your business. It involves reviewing your business plan, even coaching you for your future needs. Outsourcing is effective if you are unable or have a lot of consideration in hiring someone to fill the high position.
As your company starts to grow, managerial skill is a necessity. It is because the performance of your employees will influence the quality of your products and services.
The lack of managerial skill will make your company crumble from the inside because your employees’ performance will influence the quality of your products and services. You have to know the sign that your business may be declining because of management issues.
- The high rate of employee turnover;
- Criticism, disrespect, and blame has increased;
- Declines of initiative and diminished aspirations;
- Declining productivity.
If you notice those signs in your company, try to refresh your management style and find the one that suits your company.
Core Points of Surviving Startup Phase
Defining the identity of the company will help you to set the limitation of your products and services. It will give you a clear line to define your markets and your competitors.
After identifying the suitable markets for your company, start to create an advanced marketing strategy to reach your market. This step will define the growth of your company.
Afterward, prepare your company for the growth phase. Improve your managerial skill first to prevent your company from crumbling. When you notice the signs of management issues, a change of management style is needed.
Are you ready for the next stage?