Tough economic conditions will not last. As such, you can either use this period to improve your ... [+]
To build a successful startup, you must create a product people need. This is entrepreneurship 101 and a valid rule, no matter the market, industry, or business model. What we can learn from today’s turbulent times is that in many cases, even needed products can turn into good-to-have solutions. In fact, due to circumstances like inaccessibility, must-have solutions can also suffer.
If you’re launching a startup at this time of the year, the market should have made your job a bit easier. It doesn’t take years of startup experience to predict if customers will use your product.
Tough economic conditions will not last. As such, you can either use this period to improve your product or revisit your value proposition to address and capture today’s urgent needs. And if you have an existing product, you can do one of two things:
1. Nothing
Waiting is certainly one of your options. Laying off team members or completely shutting down operations can reduce or eliminate operating expenses, which will minimize losses in the short run. However, because long-term performance depends on your short-term plans, the question is, how will this affect the future when everything is back to normal?
Real leadership manifests in tough times. Surrendering to economic conditions means that the market controls your performance. While this is true in many ways, a true leader will adapt. Whether it is tapping into new markets, offering new solutions, or restructuring pricing strategy, a true leader will find a way to keep the business afloat and even grow.
Furthermore, turbulent economic periods are rare opportunities to take on projects with long-term returns. Instead of pausing operation, many of your team members can shift focus to build new foundations with big future payoffs.
2. Strive To Keep Your Customers
Our company helps entrepreneurs launch startups. Many of our clients with businesses have been affected by today’s economic conditions. For many, launching a startup is no longer a top priority. Last week I called a few of our key clients whom I know experienced a significant decline in business performance. I proposed to help them with anything they need for their existing businesses, whether it is marketing, sales, operation, strategy, consulting, and even customer service. One of our clients recently told me that if it weren’t for our initiative, he would have suggested to pause our partnership.
Think about what your customers really need today. While focus is critical for startup success, flexibility and adaptability are even more important. If your product is no longer a priority for your customers, either address their needs or build solutions that do.
Customers’ budget does not suddenly disappear during economic dips. If you offer good-to-have solutions, your job is to justify your company’s value in comparison to customers’ top priorities. Follow these simple steps:
- If you run a growing startup, list your most valuable customers.
- Research and list what you believe are their top priorities and what you can help with.
- Email or call to offer your support in your listed areas plus anything else they urgently need.
It is cheaper to keep a customer than acquire a new one. This is the best time to strengthen your relationship with your customers. Your commitment to helping them with their priorities will not be forgotten. Remember that business is all about human relationships.
In sum, it’s important to recognize the opportunity that turbulent times bring to your startup. If you’re launching a new venture, use market insights as a validation tool and a guide to build a product people need. If you run a startup, this is the best time to strengthen your relationship with your employees and customers while investing in projects with long-term returns.
