The statistics about the new tech startups show that only 50% of the startups survive for more than five years. On the other hand, 50% of the startups don’t survive in the market because they don’t achieve the product-market fit. Its reason is that they enter into the market without identifying the market growth. As a result, they fail to create clear roadmaps to achieve long-term goals. According to Ed Sapin (CEO of Global Sapin Strategies), if a business person enters into the business with a profitable idea, he will get success. Here, we will provide some essential tips to identify market growth for a new tech startup.
Know The Value Proposition Of A Startup:
To understand the value proposition of your startup is the first step to grow your business. After identifying the value proposition, you will get an idea either your business will meet the expectations of the customers or not. According to experts, if you want to convert your idea into a successful company, you will have to establish a substantive value proposition.
If you fail to establish the compelling value proposition for your tech startup, you will face lots of troubles in engaging the potential customers, in becoming the market leaders and in generating the positive cash flow. While establishing the value proposition for your startup, you should follow three essential steps. First, you should create a compelling headline. Secondly, you should create the sub-headlines. Thirdly, you should create at least three bullet points for each sub-headline.
Identify Your Target Audience:
After establishing the value proposition for your startup, you should try to identify your target audience. On the other hand, if you don’t identify the targeted audience, you will enhance the wrong products, you can’t build the best marketing strategies, and you can’t increase sales of your products. To identify the target audience of your tech startup, you should keep in mind three essential tips.
First, you should gather survey data. You can collect enough data about your tech startup by conducting surveys in various ways like by sending emails and by sending newsletters etc.
Secondly, you should analyze the market data. The best way to analyze the market is to get insightful data about your customers.
At last, you should review the personal networks. It means that you should get reviews of your friends and family members about the quality of the products.
Establish Key Performance Indicators:
While starting up your business, you should set some key performance indicators. These key performance indicators are helpful to you to measure the success of your startup. You can establish various key performance indicators. First, you should measure CAC (Customer Acquisition Cost). This is relevant to the cost of acquiring new customers.
Secondly, you should measure LV (Customer Lifetime Value). LV is relevant to the total profit of the customers.
Thirdly, you should measure the Burn Rate of your company. Burn rate means that rate at which a company is spending capital. Fourthly, you should measure the Gross Profit Margin. It means that after selling the products, you should measure the profit. You can easily measure profit by subtracting the cost price from selling price. At last, you will have to measure the conversion rate. It is the measure of the actions that your customers are taking while buying products.
Monitor Your Competition:
To keep an eye on the competitors is also an essential strategy to identify the market growth for the new tech startup in various reasons. As told by a coursework writing service, first, it is the best way to solve the challenges that you are facing in the industry. Secondly, by monitoring the competitors, you can find out the shortcut ways to get success.
Some people don’t monitor the products of their competitors because they think that the quality of their products is less than the quality of their competitors. You should not fear about it. Its reason is that if you are fearing about this fact, you can never compete with your competitors. Its reason is that when you compare your product with the products of your competitors, you can improve the quality of your product. Thirdly, this is the best way to analyze the competitive landscape of the competitors.
Make Smart Hires:
To get success in the tech world, you should hire the right person for the right post. Its reason is that if you have hired the wrong employees at different posts, they will not add value to your business. To hire the best person for the right post, you can also get help from the experts in your field. On the other hand, if you are hiring wrong employees, it will create lots of problems in your startup.
For example, if you have hired a wrong employee and you are giving five-figure salary to him, it will become a cause of significant loss in the traction, momentum and profits of the company. The best technique to hire the right employees for the right posts is to visit nearby tech universities. In tech universities, you will find the right persons for the right posts at the lowest salaries. Moreover, they will also try their best to add value to your business.
Scale Responsibly:
Premature failure is also an essential cause of failing your startup. Therefore, to avoid premature scaling is also an essential tip to save your startup from the failure. It means that you should not spend enough money on the overheads before getting profit in your business. Once, you have started to get profit in your business; you can spend enough money on the overheads.
Moreover, you should also avoid the debts because if you are taking debts, you will have to pay its instalments. If you are not gaining profit in your business, you will face lots of problems in paying the instalments. Therefore, while identifying market growth, you should try to scale different things responsibly. You should try to prepare a complete plan of how to overcome spending before earning enough profit and how to manage capital for the business without taking debt. To select the coworking space for establishing the office of your business is also an essential tip to save enough money during the startup.
