Building any business from the ground up is a daunting task, and how you approach the process can either make or break the business. What’s more, after you’ve established the business, it’s a delicate balance that keeps things going for the first couple of years. You’ll want to develop the skill and knowledge required to grow your startup and make sure it has lasting power.
Keep in mind that it’s important to start small even if you have big dreams of creating a major corporation. Everyone has to start somewhere, and you want to target your small niche of customers first before swimming over into a bigger pond. After you’ve tread the water for a bit you can consider expanding, but don’t forget to pause at every stage to make sure your business is stable before moving on again.
1. Gain traction by focusing on customer experience
There are key differences between a startup gaining traction and growing. When most founders say they are looking to grow their business, they typically mean they’re looking to gain traction.
The startup phase is all about building enough momentum to find the best marketing fit, get customers coming in the door, and then retain those customers. Growth simply can’t happen until your startup has gained enough traction to keep a strong customer base. Get this step right first before trying to expand.
During the traction phase, focus on establishing your revenue sources and paying attention to the customers you’ve already gained. You may want to consider implementing a customer loyalty program or sending out promo codes in an email newsletter. You may think you’re passing up opportunities to attract new customers, but maintaining loyal customers you already have is key to any startup’s success.
Here are some tips to enhance your customer’s experience:
- Diversify your startup’s offerings to give customers what they want.
- Engage with customers on social media to personalize their experience with the business.
- Deliver quality products and services that will motivate your customers to passionately review them on social media sites.
- Hold a giveaway that requires customers to follow and share social media posts to qualify.
2. Network
One of the first things you should do even before establishing your business is network. Networking is crucial for making contacts, sharing your products or services, and influencing the right people. The bigger your network, the more support you have access to when it’s time to look for advice or recruits.
To network with influential people, follow their social media pages and interact with their posts by commenting, sharing, and liking. Engage in their content in such a way that they start to notice you. Make it a point to show them you care about their work and involvement in the industry and make connections to your idea or budding business. Just be careful not to go overboard, as you don’t want to come across as annoying.
Networking is also about interacting with skeptics. You certainly need to have supporters in your corner, but listening to skeptics can help you see your blind spots while your busy talking up your new business. Too many company founders define their skeptics as enemies, but there’s no reason for that, especially when they can help you.
Consider how drastically you can improve an item when someone points out its flaws. You can work more diligently on improving your brand.
In some cases, early skeptics go on to become major startup supporters. For example, when the digital startup company Explica was first pitched to MVII8, a private venture capital firm, they were against the idea because MVII8 typically invests in other types of businesses. However, after a couple of months, MVII8 became Explica’s lead investor, proving that even skeptics can become your most powerful allies.
When building a startup, you may be unfamiliar with ways to network. Here are just a few suggestions:
- Join a business accelerator program to find mentors in your industry.
- Seek out startup founders who have successfully done what you’re trying to do.
- Attend business-related events and talk to other guests. Have your business card handy.
- Comment on influential blogs, articles, and social media posts.
- Reach out to journalists who might be interested in covering your story.
- Don’t be afraid to say yes to build connections, especially if you’re looking to trade favors.
- Follow up on the connections you’ve made.
3. Hire the right people
Once you’ve established a network, it’s easier to find the right people to hire. You can’t even begin to consider the business’s growth trajectory until you’ve hired a great team to help you get there.
Unfortunately, most startups don’t have the finances required to hire the best in the business. Early on, you may need to offer incentives other than a competitive base salary to attract the best talent. You may consider hiring freelancers to work as remote employees or give new hires opportunities to work from home for a few days each month. Flexible working arrangements help entice talented people to join your team, even when the money isn’t there yet.
If you’re building a startup that’s getting a good reputation, hire your fans. The ones who want to see you succeed the most will work hard to help you get there. Even if your fans don’t have the proper skills, attitude is everything in the beginning. You want a team dedicated to your company’s mission and vision, even if it means a little extra on-the-job training.
Since most startups don’t have the funds for a large office, rent space in a co-working building. You’ll have less overhead, an open office environment, and can use the funds saved on overhead to pay your employees what they deserve. Overall, make your startup a great place to work with a fun, transparent environment.
Your employees are your startup’s foundation. Once that foundation is in place, cultivate it and watch it flourish. The best and brightest talent will work hard to achieve success for a great company, and you’ll delegate tasks that can free you up to focus on the bigger picture.
4. Reduce your risks
No startup exists without risk. Risks are part of business regardless of the industry, but you can lower your risks to help ensure your startup has the best chance at making it in the competitive market.
Invest in adequate business insurance as early as possible. The last thing you want to deal with when building your business is unexpected disasters. For example, having someone steal your customer records, employee data, and logo designs can destroy everything you’ve worked so hard to create. Moreover, theft can erode customer loyalty and the confidence they once had in you.
Every startup should be covered by insurance products that will protect you from unexpected losses. Insurance will also protect you against lawsuits which could be brought on by unsatisfied customers or employees.
You can also reduce your risk by renting your startup’s office inside a co-working space that provides all the necessary office equipment, electricity, and other essentials. When there’s less overhead, there are fewer items you’ll need to recover in the event of a loss.
5. Adapt
All successful startup founders have one thing in common: they’re able to adapt quickly to change.
When you’re adaptable, you can take charge of product or service development as soon as the market changes. You can anticipate changes and shift directions as needed to keep up the pace. Being adaptable also gives you room to fail; you simply get back up and keep going full speed ahead.
For instance, founder and CEO of Manhead Merchandise Chris Cornell, had to adapt and expand his client base beyond the music industry, which was its original scope. Without that ability to adapt, Manhead Merchandise wouldn’t have become a leading force in current pop culture trends.
Being adaptable is also about thinking ahead. While you can’t always plan ahead, you can think beyond the current situation to expect changes. Always plan your next step and consider all possible scenarios when making those big decisions. While this is certainly a great skill to have when your startup is just getting off the ground, it’s a must-have as your business grows and evolves into something bigger.
Growing a startup business is no easy task, but with dedication, the right knowledge, and an amazing team you can make it a raving success.