Plenty of startups fail! So what? You tell me. They are startups for that. Yes, it’s true, but what if I told you that startups could avoid breaking down if they had a thoroughly planned and properly implemented business strategy. You’d tell, they should do it! Today we will discuss why IT startups need business strategy and business strategy consulting, and the main steps for a great business strategy.
Strategy? What for?
Many IT leaders think that a brilliant idea is all they need. Of course, ideas are important, but projects cannot grow without carefully designed strategies. Have you ever thought about the reason why so many startups fail? Why do so many leaders waste their money, energy and time and get nothing? It is because since the beginning they didn’t see the whole picture and didn’t follow clear goals. To avoid this, you should take it for granted — business strategy is the most crucial thing to do after your main idea has appeared.
A good strategy can consist of these 7 steps:
- What’s your business about? The first step is to define your business and elevator pitch. If you cannot tell in less than 30 seconds what exactly you are going to do — you should give more thought to it! You should clearly understand: who your ideal customer is; what pain your product solves; what the form of your work is; what makes you special from others. Whether you are selling online,
- What is your goal? These goals should be clear, realistic, and easily measured. Additionally, you should divide your goals into long term and short-term
- Who is your target customer? Is your customer male, or female? How old is she/he? Are they married, and do they have children? What are their hobbies, and where do they live? How much do they earn? so on.
- What does SWOT-analysis tell? A SWOT analysis will help you identify your positives and negatives inside your business. You identify, measure, and analyze your strengths, weaknesses, opportunities, and threats.
- What are your Competitors about? Spend some time and make a list of your competitors. What are their strengths and weaknesses, how are they marketing online and how can you make your business stand out?
- What is your cash flow? Every business owner has to face the mundane tasks of creating a cash flow projection. If this is something you cannot do, bring someone in who can do this for you, and who understands exactly what is needed.
- What is your Digital Marketing Strategy? Digital Marketing Strategy is key when it comes to launching a new business.
Final thoughts: Strategy consulting for startups
With the clear understanding that startups need proper strategy for them to succeed, IT startup leaders have two options: either develop a business strategy on their own or turn to professional outsourcing companies that provide strategy consulting for startups. As a rule, business owners that start new projects lack experience and skills to deal with these challenging tasks, so they address their issues to mature outsourcing professionals. If this is your case, feel free to contact us anytime with any question you have.