Essay: Focuses for start up businesses

Ideas such as introducing new marketing tools like social media platforms, E Marketing are useless without a well trained team to execute them successfully. A strong management team should have the right level of experience, knowledge and needs strong technical leadership if we were to adopt a technology-driven company. At the same time, firms often spend too much on refining the product and too little effort engaging with target customers. Especially with startups, and SMEs, success often depends on having business owners with solid marketing or sales expertise.
II. The Market
Successful startups especially SMEs usually focus on markets that are capable of becoming large and profitable. For example everyone with a computer or a Smartphone is a potential customer. This means they should acquire a competitive advantage strong enough to overcome entry barriers to keep out new competitors once you enter and to be able to compete with the existent established brands. Startups should also offer tools to facilitate the customer’s experience such as software applications for or infrastructure elements such as Wi-Fi availability or the option to buy and pay online. These additional factors must also be available for a startup to succeed. All that being said, these businesses can take many years and lots of funding to become profitable. Such huge markets attract a lot of competition because they are so large. The entrepreneurs need to persuade investors of their particular advantages over competitors, and how their companies will reach customers and invest on those advantages.
III. New Product or Service
Some entrepreneurs are able to identify such customer needs that are unfilled. At earlier times, some business owners build their companies with a product or service they think its what’s the market needs or thinking that they will create a new trend in the market, as for example Steve Wozniak did with the first Apple computer and Steve Jobs did with the iPad. But in order to deliver a product that the customer would actually buy usually it requires more than emotion: They want to see all the details and benefits of the new product or service as well as what type or standard of potential users that are willing to pay to get it. The value perceived by the customers depends on what competing or substitute products and services are there in the market and at what price. Some companies enter a market with a competing price, cheaper but less functional than what large reputable brands offer. SMEs should study the market and understand it, even forecasting what would the customer need and create the wants, with large firms focusing on existing customers and unable to recognize the threat of new technologies, services that are initially inferior to them that’s a competitive edge that SMEs should consider in their businesses
IV. The Credibility Gap
The fear the company will fail, due to the strong competition of established large firms in the market. It is easy for customers to go with an established and credible brand, even with an inferior or more expensive product. Some Startups line up paying customers to serve as references for new customers, but new customers will usually not risk and try unless the startup has sufficient money to last for a time period. The credibility dilemma may be the most common cause of failure for new companies. To tackle this issue, SME in their startup phase can do several things. First give away some promotional free products for customers to try them, ask customers about their feedback through social media through constant engaging with them and constantly improving their customer experience. This will help the company to have many positive reviews, which will encourage new customers to try the company’s new product.
V. Flexibility
Most SMEs in their startup phase have limited resources and time compared to large organization. However, SMEs need to have a certain level of flexibility in their strategy and technology. Most new companies often get the marketing strategy and sales channels wrong the first time around. Even with couple of chances, they often tend to make mistakes. So flexibility is often critical to success. The right formula is more likely to come only over time, with numerous trials and errors, rather than through planning in advance.
A Startups need to devote their resources on a specific approach, but still they should be prepared to change course quickly if this strategy is not working. To acquire flexibility, the founders and the management team should think about different options and study the estimate different outcomes from those options in order to minimize the risk of failing and also to be the most cost effective they can.

Source: Essay UK -

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