With an increasingly complex economy; soaring interest rates, global sociopolitical issues and a post-pandemic landscape, it can be difficult for startups to know how to surprive, let alone thrive. Starting a company in the UK can be difficult and therefore, understanding and being aware of how you can help your venture really succeed is important in an ever-competitive age.
However, even in times of difficulty, startups can continue to grow, innovate and earn money. With the right business plan, and knowing how to take advantage of the right opportunities, startups can overcome external challenges and become a thriving business.
Adjust your offerings
Utilising your existing customer base can be a good idea when selling new products or services, as long as you are offering a solution to what they demand. Some products and services will always have a good degree of demand. These will likely be services offered by companies like marketing agencies, IT support providers (find out more information) and companies selling everyday essentials, like supermarkets and online retailers.
Rather than targeting brand new customers, approaching those you already work with means that half the work has been done. However, you will need to tweak your offerings to cover new needs and demands.
Carrying out market research at this stage can be a good way of knowing the demands of your customer base and investing resources to meet those needs. Tweaking your offerings enables startups to expand their sources of revenue without needing to spend on finding new customers and markets.
Invest in your team
If you are trying to create a thriving business, your people will be the tool to get you there. To take your company to the next level, you will need a strong team that you can trust. This means investing time and resources into recruitment, training and staff retention.
Look for potential as well as experience, and take the time and energy needed to train your team up properly on the systems and software your business inevitably uses. For example, if your company uses a particular business broadband service provider, having staff aware of who to contact should the internet go down is key to ensuring they can remain productive. Thus, not all investments in your team need cost the business money directly, yet they are important.
Think about the necessary skill sets and consider whether you can train your in-house staff; this will have a positive impact in the long-run, although it may be time consuming in the present. By adapting to market conditions, and doubling down on staff training, startups are more likely to thrive – even in periods of financial difficulty.
Focus on customer retention
Retaining customers is just as important as initial customer acquisition, especially during slower periods. Consider the customer journey and how you might enhance their experience at each stage, from initial enquiry, to translation, to after-sale support. This involves a deep understanding of your customer profile so you should take the time to determine who is using your product or service. If customers have a positive experience with your business, they are much more likely to be repeat customers, leave positive reviews and recommend your services to people they know – all of which will help to boost your company revenues.
Conserve your cash
Startups should be cautious with their spending, especially when first setting up a business. With increasingly more startups facing lower valuations and slower growth, companies need to watch their spending and make sure that they are being as frugal as possible. This includes effective management of cash flow, working alongside a budget and cutting costs where necessary. There are creative ways to do this such as renegotiating contracts with suppliers and assessing spending to see which areas might be cut back. Once you start to assess company finances, you can think about how your startup might be able to operate more cost-effectively and save money.
Be patient
Starting a business can be frustrating, with many changes, setbacks and challenges along the way. It can be easy to get stuck on one idea and one method of doing things; however, be open to criticism and feedback, especially if it is from customers or those with more experience in the sector. Being flexible and open-minded can help you grow your business. Overnight success for startups is a fairytale ideal; success takes time and a lot of hard work and will test your patience. However, although the journey to get there can be difficult, the outcome can be incredibly rewarding.
