Strategies to focus on while building ventures
For an effective strategy all you need to do is REST. Yes, you have read that correctly. All we need in order to build ventures, across sectors, stages, and scale, is REST.
Being in the world of startups, accelerating ventures across the country, whilst working with some of the most reputed organisations across industries, we have noticed that each organisation, at some time has chosen REST as a way of becoming leaders, or move towards being leaders.
This, here is a simple four-step guide with examples on how when you REST, you are more likely to be able to earn some well-credited rest for yourself and all your stakeholders.
R – Research
For any organisation, there are two kinds of customers. Those that want your product, and those that need your product. The former might give you a sudden increase in revenue; however, the latter enables you to constantly grow. At first, it is hard to differentiate between the two, but the means to do this is led by research.
There was a startup that made packaged food for the Keto market, which attracted those that wanted to get fit because science backed the diet to their fitness goals. Then, there were those who became customers because their medical condition prescribed a Keto diet, which led them to not only being fit, but more importantly, healthy and secure. The latter came under the need category.
Here the startup had two decisions -- either cater to only those trying to get fit by targeting them for large orders which could result in having a low lifetime value; or, cater to an audience that is prescribed a Keto lifestyle by creating products in tune with their requirements.
However, research backed on the customer lifetime value and the thesis that food when consumed with a long-term and focused intent is more likely to be consumed for a longer duration, led to a brand named Ketofy. The aforesaid brand serves a much larger population of intent-focused diets through a label we now know as Wellversed.
Research not only does help you identify the need vs. want customers, but also serve the needs of the former, resulting in our next strategy.
E – Excite
Look at your phone, laptop, or tablet, which you are reading this on. Now, think about what you previously used and what you are most likely going to purchase next. There will be a common reason behind your past, present and future decisions, especially in the gadgets category.
‘You are either an Android user or an Apple user’, is a common debate and it is linked to the excitement brands build by locking you in on features you are hooked on by offering you a more improved version to look forward to. This excitement is built from none other than the research a brand would conduct on the needs of a ‘need’ customer, and just like that, we are excited customers!
Next time you purchase from the same brand, think of what stands out the most between them and those you did not pick. This is the ‘excitement’ factor.
S – Stabilise
The word is self-explanatory and I believe the COVID-19 impact has made startups, investors and organisation across the board realise the importance of reaching stability or being self-sustainable at all times.
The moment you identify the top two strategies, the next stage is ‘letting go of the excess baggage from your organisation’, which is the step of identifying what is a revenue centre in your business, and what adds costs. In the latter, outsource your costs to companies, freelancers, or any external partner, who knows the role better than you. A majority of our costs are built in by repeatably doing a task incorrectly.
Stability also comes from listening to your customers at all times, and ensuring they know they are being heard by building your strength towards their needs.
T – Teamwork
You are as good as your team and more likely to improve when you have team members who can make you learn each day.
Look at all the organisations you love working with, buying or learning from. They have one common factor that stands out and that is their team. They are built with members that compensate for one another’s weaknesses with their respective strengths.
This is achieved not only by delegating work but strategically overlapping support functions that ensure that when a task is being conducted, there is no slippage when the baton of responsibility is being passed on from one team member to the other.
As for ourselves, we are a lean team from the outside but internally we have realised that in order to grow, you need to make the most of all your combined resources and learn from your huddle.
The next time someone asks you for effective strategies on how you can build from where you are, ask them to REST, and everything will be taken care of from there.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)