Small businesses are a significant part of most economies, even in the US. And startups fall into this category, making you part of the driving force of any market. But, the bad news is that 90% of startups fail and the failure rates span from the first months to the 10th year of operation.
You would probably want to know the reasons for such high failure rates. This is understandable because that’s what savvy entrepreneurs do. They strive to see the landscape and its pitfalls to avoid the same fate. Here are the top reasons for high startup failure rates in ascending order:
- No cash or failure to raise capital
- The product does not meet market needs
- Knocked out due to stiff competition
- Irrelevant business model
But, it’s not all gloom. Bytedance is the most valuable startup at $75 billion at the time of writing. It was founded ten years ago, and TikTok, part of its brand, has made it mainstream. In short, growth and success are within reach for any startup. But, you must be wary of the pitfalls and know ways of accelerating your growth.
Let’s Discuss Some of the Secrets to Growing Your Startup
1. Have a Solid Startup Marketing Strategy
No one will know how good your solution is if you do not reach out and inform them. Neither will your revenue or funding grow.
Let your target audience know you exist to attract sales and funds. Create a well-crafted and solid startup marketing plan to position your brand. From traditional to digital marketing, use every channel at your disposal that speaks to your audience.
But, it can be overwhelming if the founder has to double up as a marketer. It can even be worse if you’ve no prior experience in the field. You can engage with startup marketing agencies and save your energy for other growth areas.
Since they’ve been in the industry for a long time, they’ll know all the tips and tricks to help you effectively grow your startup. They’ll also know your target audience better and use the most effective methods to drive impact.
2. Don’t Overlook Content Marketing
Content marketing is the consistent creation and distribution of relevant, high-value content to attract a specific audience. Moreover, it retains the target audience and eventually persuades it to take profitable action.
Over 90% of organizations use it and B2B companies have mastered it. B2C firms are also catching up. Content marketing is 60% less expensive than traditional marketing and drives 3X more lead generation. You should engage with a startup digital marketing agency that offers it as part of the package.
It will drive more growth with more leads from content marketing.
3. Prioritize Customer Experience
Some of the best-performing high-growth companies offer exceptional customer experience. For example, Amazon and Netflix use recommendation systems to provide a personalized customer experience.
The recommendation systems suggest products and shows based on user needs and tastes. And such ultra-personalized customer experience is driving about 30% of Amazon’s revenue.
Also, reduce the lead response time to help convert new leads fast. Use better customer support and relevant technology to focus on the customer experience. With excellent customer experience, you can smoothly drive customer acquisition, retention, and growth.
4. Leverage Social Media
Here are some quick fun facts on social media:
- It has over 3 billion active users daily.
- It drives brand exposure to more than 90% of companies.
- And contribute to more than three-quarters of companies’ traffic.
- 70% of customers share video content related to brands on social media.
Most of your prospects are online. You have an almost infinite market. Social media can help drive traffic to your website and improve brand recognition. You can even target incoming traffic with discounted offers to increase leads and conversions.
Additionally, social media users can share your brand videos with their followers. Hence, it can improve brand loyalty and attract referrals from their timelines. The best startup marketing campaigns should include social media. So, tap it for more growth.
LinkedIn must be part of your social media strategy if you’re a startup in the B2B space.
5. Increase Brand Awareness Through Networking Events
A brand is invisible as the air but critical to any organization’s life. Any inconsistency in branding will undermine your image to employees and customers. You must use every available chance to improve your brand awareness.
Networking events are a perfect spot for driving brand awareness. You can interact with your prospects and funders and inform them of your brand. If you’re a speaker at these events, offer passionate delivery with a straightforward solution to your customers’ problems. You must polish your public speaking for this one.
Have a team live stream the event on your social channels for ripple effects and the greatest impact. More than 80% of users prefer video over social media posts and more than 60% are more likely to buy after a video.
So, live streaming networking events across social media can boost your brand image and sales. But, engage with branding services for startups providers for subtle nuances for high-value impact.
6. Strive for Efficiency and Cost Gains
Every business strives to reduce costs and increase its profit margin. So, should you. Cut off whatever is not working and streamline your operations for efficiency and cost gains. Go for quality but less costly needed inputs. For example, you can use crowdfunding, equity investing, etc., to lower the cost of interest.
Also, you can use freelance workers for remote workers to save on rent, office, and other bills. But emphasize on quality. You can easily scale up in new markets with better efficiency in place for more growth.
7. Build the Relevant Knowledge Skillset for Startup Success
You do not want to go into a war unprepared. You’ll be halfway defeated before stepping into the battlefield. You need the right and relevant knowledge skillset to drive and sustain your startup traction. You should:
- Spot opportunities in your niche
- Have what it takes to run a venture
- Leadership and management skills
- Have ethical skills etc.
Alternatively, ensure the right team with relevant skills are on the startup. Having the wrong team contributes to 14% of startup failure rates.
If you’re a single founder running the startup solely or with a small team, leveraging relevant technology tools is vital. They complement your efforts and skills to drive growth. Here are some of the tools:
- Slidebean for creative pitch decks to woo potential investors.
- TrustedSite to earn your potential customer’s trust.
You need the right skill set and tech stack to drive growth.
It’s tough managing a startup. You may be forced to assume most roles, if not all, to achieve its growth. But juggling between the positions can be exhaustive and undermine your growth.
For example, it can be tiring to be the founder, marketer, sales, finance, etc., all at once. You’ll be burnt out. We don’t want you to be part of the 90% of failing startups.
We recommend outsourcing some technical aspects that you can not handle personally. Also, emphasize social media, content marketing, and customer experience to scale. Streamlining your process is also vital for efficiency and cost gains.