The Business world has been buzzing with the recent news of Snapdeal’s possible acquisition by Flipkart. While some are gobsmacked by this news, others knew they had it coming. Obviously, something went wrong, not instantly, but rather the mess built up over time.
So, what can fellow startups learn from their business gaffes? Apparently, quite a lot!
- Emulate Smartly
When it comes to imitating the competition, it is not always a bad thing to do so. You can take a few ideas from your competitors and make them your own. But these things must be undertaken within reason and within the given budget, of course. Bottomline, only if the business has gained the trust of consumers, then can you afford to invest in specialty features.
- Say No to Unnecessary Acquisitions
Snapdeal spent a lot of money acquiring Freecharge which didn’t give expected returns especially in the Paytm era. So, they lost a lot of money on the deal. Be smart about the acquisitions you make even if you are well funded.
- Frugality is King
Yes, your business may have made profits that you never thought were possible, but it can all plummet due to poor financial management. It is not about being cheap, but rather, being frugal, which is actually smarter. It really is pointless to spend copious amounts of money on marketing and branding when that is not supported by enhanced customer experience. Basically, put your money where your mouth is.
- Don’t Focus on Competition
There is no harm in scanning your competition, but it should never become an obsession. One of the biggest goals of retail startups is the need to crush Amazon and this can be problematic, as critical issues like customer service and timely home deliveries are ignored. If these aspects become a priority, even Amazon would have some cause to worry.
- Treat Employees Well
After customers, your next priority should be to keep employees happy. The working environment should be democratic, where employees can share their concerns and suggestions. A healthy workplace makes a huge difference, which results in a better output that will surely help any business become successful.
- Solve Problems
Every consumer has a problem that is waiting for a solution and your startup can be the answer. Research is the key word here. Add those verticals to your portfolio that have synergies with existing businesses, not because your competition is getting into it.
- Make Long-term Goals
If your company has not set up goals, it is doomed to fail. Long-term goals secure the future. Even though short-term goals may seem beneficial, they may cause huge deficits later on. Businesses should avoid the dangerous distraction of such goals. Instead focus on building strong relationships with customers, it cannot happen overnight, but it will benefit the company in the coming years.
- Execute efficiently
Your goals may be great, but if they are not executed well, it will spell doom. The management must have a clear vision on how to achieve this. Many startups fail due to this reason because they begin well, but somewhere down the line the execution failed.
- Be Innovative
Innovation always breathes new life into the business and that will definitely attract new customers while making sure regular customers are kept longing for more. Take Amazon Prime and Pantry for example, through which they gained a wider customer base. The important thing is to not be a one-trick pony!
- Win Over Customers
The saying, “Customer is king/ queen.” should be the mantra of your business. A happy consumer makes a successful business and no amount of advertising campaigns or rebranding will help boost sales if people are not satisfied. A lot of advertising actually happens through word of mouth than front page advertisements in newspapers. Therefore, if people are happy, leave them to spread the word and watch your sales shoot up.
So, it is not how you begin, but how you finish!
Image Credit : gadgets.ndtv.com