7 proven growth strategies for startups!

If you are starting a business , you will definitely worry about whether your company will fail like the vast majority of startups. It’s not enough to just avoid mistakes; you need to come up with a practical strategy to grow your startup.

In this highly competitive market, it is very difficult to keep a company running and grow step by step. When starting a new company, many factors come into play during the process that can affect the business: the level of competition, funding issues, government policies, and so on. But fortunately, there are still a few startups that have stood out from the industry and gained a foothold.

Survival rates of startups from different channels

However, as shown in the figure above, the data tells us that the vast majority of startups do not survive more than 10 years. Establishing a company is only the first step. To survive and expand, you need a development strategy for your startup.

Every founder hopes to achieve sustained and stable growth. Here are some strategies for your reference:

01Find your “why” and stick to it

Even if you have great products and services, if you yourself cannot clearly answer why you want to start a business and what the purpose of this company's existence is, you will be out sooner or later.

This "why" is the only reason for the company's existence. It is a guiding light that guides all the company's work. In short, this is the ultimate goal of the company.

A clear definition of the ultimate goal can help companies provide growth momentum and open up profit margins. Look at companies like Amazon, Coca-Cola, Apple, Google , and MasterCard; they all have very clear corporate visions and benefit from them.

You need to constantly examine your “why” and then go all out to achieve it.

02. Create a unique selling point

A unique selling point (USP) is what makes you stand out from your competition. If you want users to choose you, your products and services must either be different from or better than your competitors.

The USP should fully serve the company’s vision. If your company is clear about its purpose, it will guide the company in developing products and services that are consistent with its company values.

Your USP could be low prices to attract customers (like Walmart, ShopRite), fast delivery (like FedEx, DHL), or anything else that makes you stand out from the crowd.

"Why should I choose you over your competitors?" How you answer this question determines how you perform in the market.

For example, I am an entrepreneur in the fast-moving consumer goods industry, and my USP is my delivery service. In our local area, merchants expect customers to come to their stores to buy. But why can’t we go to the customers and sell? This is the perfect answer I have for this question.

So find your USP and work relentlessly on it. If you stray from it, you risk your startup failing.

03. Take cues from your competitors

Oftentimes, the best way to find inspiration is to look at your competitors. Like you, they have something that is different about them, and that may be something you need to address.

In your industry, there are definitely some younger companies that are growing in more innovative ways and at a faster pace. If you want to find a growth method that can keep up with the market rhythm and trends, sometimes you need to learn from the experience of these competitors.

04. Put your income sources in place and diversify them as much as possible

The simplest and most intuitive criterion for judging whether a company is healthy is profit. How does the company make money? How many ways are there to make money? Whether the source of income is reliable, sustainable, and whether it can obtain stable cash flow. Find ways to expand various income channels. Let's assume that you have an e-commerce website and your unique visitors and traffic are good.

You can put other companies' ads on your website, thus creating another revenue channel. But you must be extremely cautious. Not every seemingly brilliant idea can eventually turn into profits for the company. You must first consider the potential profitability behind the idea and test it on a small scale to see if it can generate long-term, sustainable and stable income. When you finally get a positive answer, fully implement the plan.

05 Talent investment

Find the right talent for your company. These people have the skills to move your company forward, and they understand your company's ultimate goals and unique selling points.

When you do recruit such people into your team, make sure they are always given priority. In terms of expenses, try to allocate as little budget as possible to items that have no direct impact on your business goals, such as office furniture, company parties, etc. Use more money to recruit better talents.

The most ideal employees will be able to stick with you through tough times and are even willing to make some sacrifices and concessions in terms of compensation. The reason is that the extent to which they like the company can no longer be measured by salary.

06 Make building a corporate culture of innovation a priority

A culture of innovation is critical to a company's growth. From a business perspective, "invention" and "innovation" are not the same thing.

Invention is about creating a completely new product, while innovation is about making that product better. Let me give you an example that is very illustrative: We have all heard of the "posture correction chair", which allows people who work or study to maintain the correct sitting posture and avoid physical discomfort caused by sitting for long periods of time. This invention does solve some problems.

What else is lacking?

Posture chairs are usually not detachable and cannot be easily taken away, so you need to buy one at work and another at home. This product is not cheap, costing between $50 and $400.

Brian Pulliam came up with a solution by designing a set of independent products that can be installed on any chair, turning any chair into a posture correcting chair instantly.

What other advantages are there? This customizable, portable product costs less than $20, so you can buy one and install it on all the chairs in your home and office. This is innovation, making breakthrough improvements on an existing idea to make it more customer-friendly.

When you and your employees make innovation a top priority, you will not be led by market trends, and you will always be able to make your products better meet the demands of your customers.

07 Improve customer retention rate

Improving customer retention is a point that cannot be overstated. According to data from the U.S. Department of Commerce and the U.S. Small Business Administration, the number of customers for U.S. startups decreases by 50% every five years. The success rate of selling a product to an existing customer is 60%-70%, while the success rate of selling a product to an unfamiliar customer is 5%-20%.

Focus on tapping into the needs of existing customers and making them feel cared for, and customer retention will be guaranteed. Make sure there is constant communication between the company and customers so that they feel you are always there for them. According to estimates, a 10% increase in customer retention is roughly equivalent to a 30% increase in the company's value.

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