It's OK to be ME-TOO startup - How to grow one?
Let me ask you a question. Why your startup exist? Why did you start it?
I started my business for 3 reasons.
1. I wanted to use my time my way.
2. I wanted to make money. And,
3. I wanted to help other startups achieve sustainable marketing results.
And I know I don’t have a business which is as distinguished as Whatsapp, or Instagram or, AirBnB, but I am an entrepreneur, I am creating jobs, and I am contributing to my country’s economy as well.
Yes, I have a Me-Too startup. And I am proud of it. And there are several small entrepreneurs like me, who want to live life on their own term, want more control over their time and want to make money, but they are tagged as me-too startups. And they are told that you don’t stand a chance to win.
Kishore Biyani for Future Group, Hero Motor Group, Patanjali, Mother Dairy, Global Desi Women Fashion… these are some of the greatest examples of how me-too businesses done great in this same world around us, and have built more sustainable businesses than Flipkart or, Snapdeal.
So how can you too, make your me-too startup, great?
1. Focus on cash, margins, and low cost business model. So that you can make money from day one and don’t starve for venture capital.
2. Find new ways to grow your revenue. Bring in new features, new facilities, add-on services and cross-sell to charge more to your customers.
3. Differentiate at product level. Have a finer quality product than your competitors, have better features, design easier to use products, and have lovely packaging to stay in a customer’s mind for longer time.
4. Focus on repeat purchases. It’s no brainer. Cross-sell or find out new ways to make your customers purchase from you again and again. Repeat rate is where you can really win over your competitors, since your customers will not go anywhere else.
5. Be unique at post purchase experience. Now this is not merely about general customer service, but they should love their decision of buying from you. Give them a call to ask if they are able to use your products easily? Offer free services, free goodies, free coupons.
6. Never buy losses. Thoroughly, and I mean thouroughly… never buy inventory, assets or customers that give you 6th sense feel of potential loss. Trust your guts for this, but never buy losses.
Remember: What makes money is called business, and what doesn’t, is called Snapdeal.
(First published on http://www.contentory.in/ok-startup-grow-one/)