Modern times have added various new dimensions to carrying out businesses in a successful manner. Success of a business becomes even bigger of a challenge for start-ups nowadays, especially SMEs. Entrepreneurs of present times need to take every step forward after some real contemplation, because any mistake can put their ambitions and investments on stake. One of the biggest pitfalls that can hamper the growth, or even challenge the existence of a startup, is not having a lucid strategy to backup the business model you deem most appropriate for your business. Having an articulate strategy for your infant business setup is actually a 3 dimensional affair, as brought to you in this piece titled 3 Dimensions of a Lucid Business Strategy for Startups.
1 Strengthen Your Product/Service
Strengthening your product or service means to offer something as a solution of a real problem for a group of people that you identify as your potential customers. In fact, it should be significantly better than any other alternatives already existing for them. In my humble opinion, no degree of shrewd marketing can compensate for low quality of the product or service you are to offer your target market. In other words, good marketing cannot help you become a winner in the market for low quality of mediocre products and services.
2 Strive for Product Market Fit
If you want to pursue your ambitions of turning your modest startup venture into an aspiring success story, reaping your share from the market for longest possible tenure, you better strive for product market fit. In other words, you need to create enough users among a particular segment of potential customers who actually care enough about the impact of your product/service in the market and the scope of your further investment in the product/service or in sales/marketing resources.
Your product market fit remains insignificant even if you present a problem’s solution for a user group with not enough of them having that problem. Similarly, your product market fit remains meaningless even if it addresses the needs of enough people in a user group, but the solution itself is inferior in any manner to the other alternatives available.
There is another spin here as well. Many companies nowadays believe that excess of capital would somehow propel them ahead of others despite all their shortcomings. So, capital raising becomes one of their prime focuses. Well, this isn’t true, can’t be, especially in the longer run. Unless a business excels in product/market fit, raising capital alone cannot help them push closer to real success.
3 Business Model
After sprucing up your product/service and finding product market fit, it’s the right time to think about business model. This is when you need to step back and collaborate well with your team as well as investors, evolving a crisp and well pondered strategy to take your business ahead at a rapid pace.
In business, the success lies in forming a winner team and working with them coherently; forming a single unit that works collectively to move forward under the umbrella of a lucid business strategy. You better take into consideration all three dimensions of a great business strategy if you want to withstand the fierce competition of today’s market, moving forward as stably as possible.
Khawar Zaman is a passionate ecommerce consultant currently engaged with Technorian.com, which he cofounded a while ago, offering WooCommerce and Magento support services. It also provides struggling startups with dedicated developers.