Are you brainstorming for the right development strategy to grow your startup?
Coming up with a strong startup development strategy is not an easy task. When a startup company starts, the development strategy acts as a beacon, guiding the team on current and future priorities.
Let’s learn about top startup development strategies with us in this article!
What is a Startup?
Starting a business, also know as a startup, is a term that refers to companies that are in the startup stage in general (Startup company). The term is often used in a narrow sense to refer to companies in the startup stage. It is necessary to distinguish between Startup and Entrepreneurship. Startups must be founded on something completely new (often based on technology), which fills some vacant needs of society.
Startups are born with competitiveness due to their products’ variety, open markets, and many competitors because there are always substitute products. Startups are not the first, but the market is still new and unsaturated.
4 Recommended startup development strategies
Corporate strategy is the method and way of doing business of a company or corporation to achieve optimal business performance. Corporate strategy is the overall content of a business plan, including a series of measures and main ways of doing business over a long period. The ultimate goal is towards promoting the highest profit and the development of the business system.
Every business needs to have a specific and correct corporate development strategy to grow effectively. The process helps the company make better plans that are feasible. The strategy needs to be carefully prepared, clear, and coherent, based on the capabilities and current situation of the business.
Some questions managers can refer to understand their startup better, thereby building the right strategy:
- What makes your business different?
- Why are your products and services attractive to customers?
- What makes the most significant difference between your business and competitors in the market?
- What factors help your business to be chosen over other competitors? In other words, what is the reason that customers choose your company?
Product development strategy
It isn’t easy to convince customers to purchase a product or service if they don’t know what your company offers. Brand awareness is why a product development strategy is vital to growing your business in its early stages. At this stage, the capital of the startup is not much. There is also no human resource. Startups should focus on developing sample products, perfecting and proving the feasibility of sample products, thereby calling for external capital because this is a survival strategy that determines the success or failure of the business.
It seems that up to 80% of new fast-moving consumer products fail, and 30% of industrial products fail. Another source says 95% of new products fail.
Why do new products fail? There are some explanations for the low success rate. Maybe the product idea is good, but it overestimates the actual needs of the market. Or because the actual product’s design is not good as it should be. Or it could be that the new product’s placement is not proper in the market. Sometimes, the launch of new products is rushed, while the market research data is not fully collected. Or because the cost of developing new products is too high, the market cannot accept it. Or because competitors promptly launch similar products first.
In short, to develop a successful new product, a business must understand what its customers want, understand the market, understand the competition, and create a product that delivers superior value to the customer.
Market development strategy
Along with product development, businesses should also focus on developing markets and attracting customers. The operational goal of every business ultimately comes from the pursuit of profit. The products produced must match the tastes of customers and be accepted by customers to be profitable. The question for each business is what to do to expand and develop the market and attract customers.
This question is even bigger for Startup businesses since the main worries are the input and output problems!
For a startup business, the niche is a safe and reasonable choice. It is compulsory to determine who the customer is to have the right market development strategy. Then startup founders can think of whether the scale is large enough, the risk from competitors is too much, etc. From here, the business decides the right market approach based on market analysis factors.
- Demographic factors include gender, age, occupation, income, social status, friends.
- Psychological factors include Hobbies, habits, lifestyle, style, idols, influence groups.
- Personal buying behavior is the ego of each consumer when buying and is not affected by the above factors.
Consider external factors
One of the startup development strategies is an understanding of external factors.
Political: Politics has a significant impact on business operations and the ability of consumers to spend.
Economic: Analyze the market and the economy to assess the situation of businesses in both the short and long term.
Social: Social factors affect businesses on many different levels as one of the most important influencing factors.
Technological: Technology is an essential element of an organization as it is a valuable tool to gain an advantage in the marketplace. Technological advancement leads to the birth of new industries and equips service and manufacturing industries with user inputs. For instance, when a business provides customers an invoice automation option like AccountDock, with which customers can easily view and download their invoices, the business increases their chance of retaining and attracting new customers.
Environmental: These factors include all those that affect or are determined by the surrounding environment. The environmental factor is crucial for some industries, such as tourism, agriculture, and agribusiness. Elements of business environment analysis include climate, weather, geographical location, global climate change, environment, etc.
Legal – Law: These factors affect both externally and internally. Specific laws affect business, such as consumer laws, safety standards, labor laws, etc.