The number of startup businesses has grown considerably over the decades. In 1994, close to 570,000 organizations were founded. By 2020, this value grew to over 800,000. As more people leave their current jobs for other ventures the number of startups is expected to grow. Unfortunately, not every business is successful. In fact, about 90% of them fail in their first year. This is not something you want to happen for your company. So, here are some tips on how to grow your new startup business in 2022.
Ensure Your Product Is Needed
One reason startups fail within 12 months is related to what they offer. It might not be something the public needs. The way to figure this out is through market research. Reach out to friends, family, and coworkers and see what they think about your offerings. Additionally, examine the industry where you want to sell and see if the product draws interest. If the responses are positive, then you’re good to go. Conversely, lukewarm or negative results should motivate you to try something else.
Define Your Customer Avatar
A question that normally comes up when you start a business is, “Who is your customer?” Don’t be fooled by answering, “Well, everyone,” as this isn’t the case. In reality, you should have a specific customer in mind, because not everyone is interested in your product or service. Thus, you want to define your customer avatar as you move forward. Basically, this is a representation of the perfect client. To develop this avatar consider the age of this individual, where they live, and how much they make. Include other items directly related to your products. Adjust this avatar as your company grows and new items are introduced.
Establish Your Brand
The brand isn’t the name of your product. It’s what your business represents and how your customers recognize you. It’s reflected in your startup’s profile, your mission statement, and your level of customer service. An example of branding on a larger scale is Coke versus Pepsi. People devote themselves to one of these soft drinks because of already developed expectations. Coke is also an example of branding that temporarily went bad. This happened in the 1980s when the introduction of New Coke became a disaster.
The concept behind affiliate marketing is simple. First, you add your startup to one or more affiliate sites. Second, you offer influencers an opportunity to receive commissions when they promote your products. Third, these individuals write blogs or record videos on your products and provide a link to your site. Should a customer purchase the promoted items you make money and your marketer receives a royalty. More affiliates represent a greater opportunity to increase your client list and revenue. The best thing about this form of marketing is it costs you little or nothing to initiate.
Invest In A Marketing Strategy
For your startup to hit the ground running you may want to engage the services of a marketing team. If so, then you need an agency like Grow Traffic that handles multiple forms of digital promotion. This is to maximize the scope of your company. For instance, the agency should have the capabilities to handle website design, SEO-based copywriting, and branding. On top of these items, it must work within your budget. This allows you to maximize your return on investment so you don’t feel the entire endeavor is a waste.
Find An Angel Investor
One reason why many startups fail in their first year is the lack of available operating funds. No matter how much you bootstrap, the organization closes if you spend more time worrying about money instead of creating solutions. A method to minimize this is to find an angel investor. This is an individual or group of people that provide capital to a startup when most investors aren’t willing to support them. Money is provided in exchange for some form of ownership. Think Dragon’s Den or Shark Tank. The advantage of an angel investor is the worry about operating capital is taken off the table. In turn, you devote your energies toward product development.
In the end, start implementing the above suggestions now to grow your new startup business in 2022.