According to Statista, the United States recorded 351,000 startups in the second quarter of 2021. These are businesses that bring a new product or service to the marketplace. They have other businesses to compete with and must work hard to gain a competitive edge.
It takes strategic planning, hard work, and dedication to build a company that outperforms new and existing businesses. Use these five tips to grow your startup faster than the competition.
1. Know Your Competitors
We have seen it in history books and films; to subdue an enemy, you must first learn their tactics, strengths, and weaknesses. This helps you know how to strike. Similarly, you have to know your business rivals well to understand what to improve, how to do better than them, and how to target their customers. If one of your competitors is giving you a run for your money, learn their ways and devise methods that incorporate their strategies and yours.
2. Understand Your Customers
Every startup has customers who remain loyal from the beginning. For example, Uber was already established when Lyft launched, but the latter acquired customers who identified something special in it.
You need to know your clients to understand the value your startup provides to them. Ask for their feedback, read their reviews, and conduct Q & A sessions on social media. The goal is to learn what they love about your products and how to provide more value.
3. Have Enough Funds
Money is an integral part of every startup, and lack of it–and its mismanagement–are two of the leading causes of business failure. According to one study, 82% of small businesses fail due to cash flow problems. A business needs enough cash to run marketing campaigns, pay product designers and employees, and produce high-quality products.
Fortunately, there are many ways to raise working capital: crowdfunding, pitching to investors, borrowing, or using your savings. Once you raise the cash you need, you can enhance your marketing efforts. You can even buy a business car and brand it. Apply for a small auto loan if you need to. If you prequalify auto loan, dealerships will give you better offers to beat your bank’s offer.
4. Be Better, Do Better
Coca-Cola and PepsiCo are global competitors, each with a number of equally loved beverages. However, Coca-Cola is more popular than PepsiCo because it spends millions of dollars on marketing. Identify what you can do better than your competitors. Do better and do it bigger.
You can provide:
- Higher-quality products
- Affordable prices
- Eye-catching landing pages
- Attractive packaging
Identify your unique selling point and capitalize on it.
5. Target New Markets
During the Covid-19 pandemic, small business owners saw their customer bases widen due to online shopping. Don’t just focus on the local market and people who come to your business physically.
You can explore other strategies such as home deliveries, an online store, and partnerships with local stores. However, carry out market research before hopping into the new market to identify the challenges and your competitors. Entering new markets has loads of benefits when you do it correctly.