According to statistics, only 1 out of every 10 startups manages to succeed, while the remaining 90% fail due to lack of experience, incompetence, negligence or even fraud. On the other hand, the minority that achieves stellar success pride themselves on their awareness of the market requirements, their clearly defined goals and the ability to properly manage their finances - all keys to building a successful startup.
However, once your startup evolves into a growth company, you are only in the middle of the road, since at that moment you are faced with a challenge of growth. Do you think you have what it takes to stay on top of your game? The following article outlines several factors you have to keep an eye on when looking to keep your company on the industry map.
Keep the Focus on the Customers
One of the first startup rules is customer satisfaction and tending to customers’ needs. Nevertheless, now that you have created something that fills in the blank space on the market, it is essential to stay up-to-date with the ever-changing consumer demands. Irrespective of the years of experience an entrepreneur has in the industry, constant learning is a must.
Focus on Alliance and Collaboration
By forming an alliance with a sister company, you are bound to experience a major expansion. What many fear when looking to take such a huge step is trust and the joint financial management. However, in order to grow your business and reach a wider audience, effective collaboration is paramount.
Consider Licensing Your Product
Even though your business idea proved to be an outstanding one, product production is a challenge all its own. For this reason, many businesspeople decide to turn to another company who will be responsible for producing and distributing the product. In return, they take the lion’s share of the profits and pay you royalties.
Expand Your Horizons
As the company grows, so does the amount of work and the demand for your product and services. In recent years, nearshoring has proven to be a preferred business model, as opposed to previously popular offshoring and outsourcing. According to the AlixPartners study, more than 30 percent of North American and Western European executives opt for nearshored manufacturing production in the past or are in the process of doing so now. Some of the most common reasons for nearshoring include the reduction of costs, while maintaining control over the project due to the temporal and spatial proximity of the location. Additionally, you establish a closer connection with local customers, gain greater insight into their needs and consequently build a stronger customer base.
Purchase Another Business
One other way of expanding business is to consider purchasing another company. Indeed, it is a risky endeavor, but if managed the right way, you are able to target other markets and can enjoy a great profit. Yet again, experts advise to keep it short distance, especially if this is the first time you are buying someone else’s business. If this endeavor proves to be successful, you can start thinking about business shopping on a global level.
Regardless of your previous achievements, there is no time for entrepreneurs to rest. Upon accomplishing your previously set goals, work on setting new ones and forming a strategy that will aid you in your future endeavors.
Sarah works as a marketing manager for NSM Engineering and has been combining her passion for writing and business research for ten years now. Currently, she’s interested in startup culture, nearshoring and marketing, as well as latest technological trends.