Why Start-Ups Should Do Less?: Minimalist living has taken an appeal for Millennials, mainly for those struggling to get by in these harsh economic times. Currently, being a minimalist carries with it a chick and trendy feel, but this demographic aims to gain more. They hope to save money and spend it on what they deem important. At the top of the list is rent, followed by the good things in life such as dining out, expensive coffee, taxis, travel and clothes they don’t need. Their simplicity is a means to an end, and perhaps the only way to achieve the quality of life they crave to have.
Why Start-Ups Should Do Less?
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A start-up can similarly benefit from such an approach, only that instead of company-funded vacations, they can channel the saving to streamlining process, adopting new technology, marketing efforts and other activities that bring the company a handsome ROI. For mentioned to be possible, it requires having a singular focus, something many start-ups fail to have, much to their demise.
Incorrect comparisons with heavy-hitters
A SWOT analysis is essential to any pitch or company profile. However, many budding entrepreneurs tend to oversimplify the hurdles they would have to jump to indeed compete with existing companies with more experience and success under their belts. They tend to exaggerate, unintentionally so, what their selling point is, promising more than is humanly possible to deliver in relations to the company’s size, experience, and resources. It is like a Burlington realty that just started comparing themselves with companies that have been in the industry for ten years.
This strategy has been constantly proven to fail. Mastery, on the other hand, is what notable start-ups, Amazon included, focus on to stand out in the market place. Amazon started as a book store. Other brands have stuck to one product and are still making handsome profits years on. Mastering a single product, offering quality and a stellar customer experience shows more promise than having on a lot and under-delivering on all.
Amazon acquisitions have been steady, and they show no signs of slowing down. Goodreads, Alexa Internet, Whole Foods Market, Zappos, the Internet Movie Database, Twitch Interactive, and Audible are just a few brands Amazon owns. It, however, all began with their diligence to become the top bookseller in the US and beyond.
Importance of singular focus
An entrepreneur that is starting their venture, therefore, ought to find a single thing to master and thus do exponentially better at it than larger brands. It is typical to see huge corporations focus more on the mass output to generate enormous revenues and to fail in focusing on quality. Here is where start-ups can gain a competitive edge in the market place.
With the few resources available, start-ups can become a master of one product. The benefits ripple through the entire structure as well. One area they stand to see rewards is in marketing, where single messaging leaves the target demographic with the awareness of what the brand offers. For example, a company can be solely known for recycling plastic to make footwear; it makes it easier to explain who you are, what you do, and why.
Final words
Starting new revenue lines is dependent on the success of the initial product. Currently, however, start-ups are grappling with getting the right product out into the market. Almost half of businesses fail because there is no market need for their product. From a business perspective, focusing on one product shows better judgment than having multiple that could potentially fail and hoping they don’t.
