Top 10 Tips How to do Business in Difficult Times? – Startup Xperts

There is enough negative news in the media and that’s what sells for them in improving their TRPs!

Be cautious, be responsible, and take precautions; but don’t get into negativity; shut your negativity door as otherwise that will shut you!

As business owners, entrepreneurs, you will need to rise above the situation as your employees and the world around are looking forward to it!

In these tough times businesses predominantly look at these 2 choices

  • Close down operations and save cost or
  • Press pause button and wait for things to change on its own!

Either of these 2 choices can kill your business.

  • But then there is a 3rd choice, that can take your business to higher levels even during this lockdown period!

Here are 10 Powerful tips, to know what businesses can do in these tough times!

Do you recall – how businesses emerged stronger after every big problem that the world had seen? Remember the dot com bubble in early 2000, the financial crisis during 2008-09 period, and impact of it in India around 2012-13. See this as yet another business opportunity that presents itself before you – with another chance!

  1. Discuss with your Business Consultants / Business mentors and Build solid business strategies and execution plans; revisit to see how it can be made smarter and better, if you already have one done recently
  2. Do some research – understand current market, customer, competition and trends in more detail which you possibly might have done long ago
  3. Innovation. Usually innovation gets bracketed to Intellectual Property or Patents. But then, anything new, that adds value to your customers and to your business, doing things differently that makes better sense for business growth is innovation too!

This is the time to do……

Innovation in sales and marketing strategy, product development, branding and packaging, building customer experiences, etc.

  1. This is the time to analyse and understand what went well and what did not work for your business. Time to do TDR (Tear-Down-Reengineer)
  2. You can look at Training the customer teams wherever required for them to improve performance
  3. Monitoring the execution to identify gaps and areas of improvement
  4. Finding right Leadership material. Tough times will help identify the grains from the chaff as to who stands tall and go that extra mile for the benefit of organization and customers
  5. On operations front, spends that was unnecessary will now pop up in front of you; essential spends and investments will be looked from a different perspective; time to bring in lean-startup principles if not already practiced before
  6. Most importantly, drive your strategic marketing initiatives. Prepare your collaterals, marketing materials; practice your pitch and fine tune your sales.

Time to create that brand recall!

Digital marketing for startups and small business, is a great way to showcase products and services. You now have Google (SEO, SEM); social media (SMM) platforms like Facebook, Instagram, LinkedIn, etc. which wasn’t the case in your previous recessions and tough times in economy! So, time to Take your brand digitally to your customers — and your business deserves that!

  1. Accelerated technology adoption is the key to survive.
  2. Use SMAC – Social Mobile Analytics and Cloud to enable your business better and smarter

In short, this is the time to Invest in your business!

As we all know — Tough times don’t last forever, but tough people do!

Business owners, entrepreneurs – Make the best use of these tough times.

Reach us in case you need any help or support in any of these!

How to start a startup – Points to consider!

Is Just an Idea Enough…?
Points to ponder before start(ing) up…!
An innovative idea is the most important seed for a startup business venture. An innovative idea can bring about a significant change in the way a product or service is adopted by the customer, but there are a host of other aspects that come into play to make the idea a working business proposition.

An innovative idea is absolutely necessary to establish a startup. But an innovative idea alone does not guarantee success in the marketplace…!

What turns an idea into a successful business venture?

While an idea by itself may be innovative, the real challenge for the originator of the idea lies in:

Stitching the idea into a profitable business model:In this context, a business model essentially refers to (a) how the idea (or a product/service based on that idea) will deliver value to the end user (b) how it can be monetized, and (c) how scalable it is.
Evolving a go-to-market (GTM) strategy that takes the business model (essentially the idea) to the market:Having conceived an idea, how will it be taken to the end user? The first question a budding entrepreneur with an innovative idea has to ask is this: what will be the profile of an ideal customer for me? Will it be, for instance, an online user from the general population looking for a specific service, or will it be a corporate entity looking to address a specific business need?
Among other questions, the GTM strategy has to, at the minimum, answer the following questions:

What is the profile of my typical customer? This question helps segment the market into various categories
Where is my ideal customer located?This question helps segment the market into various territories / geographies
What problem does it solve for my customer, and how critical is that problem?This question helps draw up the ‘sales and marketing pitch’ for the customer
What are the typical expectations my ideal customer would have from my product/service?This helps identify whether there exists a similar product/service in the market, and how your idea can be differentiated from existing offerings
How much would my customer be willing to pay for my product or service?Am I able to offer my product/service at a particular cost, or should it be high or low?
Managing Funds/Bringing investments during incubation:Working capital requirements are one of the most important aspects to be factored while establishing a startup. Entrepreneurs at times have a heady conviction behind their product/service, making them unintentionally overlook the fact that employees have to be paid their salaries, and that rentals and utility bills are a monthly occurrence!
The best way to kick-start a venture is through ‘boot-strapping‘. Self generated funds, or funds sought/borrowed from friends and relatives have been the widely used avenue in raising initial capital to set the venture in motion. If this option is not feasible, or when additional funds are required investments can be brought in through other options too; loans towards working capital or equity infusion from the investor community. Both options have their own merits (or demerits depending on the perspective!) depending on which stage of the business lifecycle the startup is at the time.

The main advantage of a loan is that it keeps management control of the startup with the entrepreneur themselves. This enables the entrepreneur to take operational decisions on organisational strategy, product/service roadmap, etc. based on market conditions, and while doing so, stays in sync with the vision with which he started off.

Equity infusion is a double edged sword. While it gives the entrepreneur access to the potentially vast network of contacts held by the investors, he has to concede certain extent of management control. Equity infusion is ideal when the startup has started to yield revenue (perhaps not profits yet!); such infusion is required to take the startup to the next higher orbit of revenue and profitability.

Whatever the investment route the entrepreneur takes, it has to be aligned with the merit of the idea, the business model, the GTM strategy and the long term plans for the venture.

The People Perspective:Having conceived a brilliant idea, a robust business model to go with it, and a GTM strategy that addresses the needs of all possible market segments, how well is it going to be executed? Having right people on the right seat. It is important to bring on board people who have a shared passion and vision about the idea/product/service.
Working in startups is characterized by the absence of role clarity – every role in the company becomes multi-faceted! The CEO could find himself making a pitch for funding during an investor meeting, at the end of which he would need to pick up the telephone to cold call a potential client! These situations will be the norm rather than the exception; hence it is imperative that the people who form the core team do not bring any bureaucratic baggage about hierarchy, role-compartmentalisation and other related aspects.

The People perspective covers not only employees: it also covers external consultants, professional mentors, advisors, partners, vendors/suppliers and others who are equally critical to the success of the startup; they bring the much required view from an external perspective, and along with it, a (brutally!) honest assessment of any shortcomings in execution.

Managing growth after establishing the business model:The issues, challenges and priorities will start to change; from the time of business start, and+ when it has reached a certain stage.
Managing growth could also involve the exit strategy for the founders. When does a startup cease to be a startup? At what stage will the founder reduce their stake in the venture? Is it the vision of the founder to make his startup a global organisation? Alternatively, is it the vision of the founder to have his startup acquired by a larger organisation which sees his idea to complement their business (typically associated with serial entrepreneurs)? It is not surprising to see examples of startups working in niche areas, eventually getting acquired by larger enterprises.

The aspects captured above are just the tip of the iceberg. It is wise that these are best approached by having a clear vision, goals, and backed by a robust execution strategy.

Dwight Eisenhower once quipped, “In preparing for battle, I have always found that plans are useless but planning is indispensable.”

Indeed, establishing a startup is no different from a battle. While we may not have all the answers at the very beginning itself, there needs to be certain goals and milestones that needs to be signed-off but be flexible enough to incorporate any changes in plans or execution, during the journey!

Startup Xperts is a Business Growth and Consulting company with an objective to transform CEO’s growth vision into realistic, strategic, actionable plans that delivers results. Startup Xperts supports enterprises through business strategies, goal setting, sales and marketing set up, developing a high performance sales engine, digital marketing, specialized trainings, executive coaching and leadership hiring.