The life of an entrepreneur is not for the timid or the faint of heart. It takes courage and a certain gumption to take a dream and transform it into a profitable business model. What’s more, you aren’t just dealing with the difficulty that comes with entrepreneurship, you also have to duke it out with tough competition.
Did you know that 19% of startup founders cite competition as their biggest challenge when starting a business? It’s not easy to go up against other companies who have been in the game for a while and dominate the niche. However, going up against these giants is exactly what you are going to have to do at some point.
In this article, we will learn how, despite the early stages of entrepreneurship being relatively precarious, with the right strategy, you can hold your ground. Let’s dive in.
Take Advantage of Your Early Stage Agility
As companies get bigger, they tend to lose that light-footedness in terms of adaptability. They find what works and stick to it, and while that’s sensible, it can be used against them by smaller, more adaptable, and agile startups. It’s even happened on a grand scale, as in the Kodak situation.
You had a mammoth of a company that had a near monopoly on the photography industry. However, when digital photography started to emerge, countless smaller companies were able to adapt and recognize its potential. Kodak, on the other hand, was well entrenched in film photography and failed to take adequate steps.
As a result, new companies like Canon and Nikon quickly capitalized on the situation and overtook Kodak, causing it to file for bankruptcy in 2012. Tesla is another example, where traditional automakers didn’t take the market seriously. The new company invested heavily into the niche, and today, other manufacturers are playing catch up.
Don’t Let Employee Number Strength Mislead You
This is one area where a lot of new founders feel insecure. They look at companies with 500+ or 1,000+ employees and feel intimidated. While it’s true that these companies are powerful, just going off of employee figures isn’t a good litmus test. If you can ensure that every member of your team brings a ton of value to the table, it might give you the advantage.
This is especially true when you consider that there are ways to tap into expert resources while staying within your budget. That’s right. When hiring fractional CIO and CFO roles is a thing, you don’t have to feel like you are lagging in experience anymore.
If you are unfamiliar with what we’re talking about, Class IV explains it simply. A fractional officer is an executive or expert who works on a part-time basis. These are individuals with several years of experience who command high salaries when employed in the conventional sense.
For example, CIOs, on average, can demand salaries from $225,000 up to $450,000 annually, depending on their experience. That is simply not in the budget of most startups. However, hiring these executives on an as-needed basis gives you the best of both worlds.
Lean into Strong Customer Relationships via Personalization
No matter what their public line is, larger companies often treat customers as data points. Moreover, there’s always been a tendency for people wanting the underdog to win. As a new startup, you can lean into this advantage and create a more genuine connection with your customers.
While acquiring new customers is important, we know that retaining customers is often easier than acquiring new ones. As a startup, it’s normal to think that your priorities should be on acquiring as many new people as possible. However, in the early stages, the steps you take to retain customers end up being a great catalyst for growth.
Data tells us that people are 90% more likely to trust brands when they hear about them through word of mouth. Moreover, you are three times more likely to inspire customers to be more emotionally connected to your services. These are areas that bigger companies struggle with, and that gives you a perfect opportunity to have yet another edge.
All things considered, no one is saying that using certain strategies is going to instantly put you ahead of established firms. That’s unrealistic, and you know that. However, these days, when even tiny niches have a ton of competition, you need all the help you can get. When your startup eventually grows big, just remember to not forget what got you ahead when starting out.