4 Ways That Startup Businesses Can Generate Real Growth

(DGIwire) – Every startup company aspires to be as big as the titans of the tech world and the internet. Yet the very first step to generating real growth for a company is to understand where it comes from in the first place. Here are a few simple suggestions for small startups that want to put themselves on a path to steady growth.

  • Incorporate new processes: Look to sell existing inventory at higher margins, suggests the Harvard Business Review. Strategies can include cutting production and delivery costs, automating for efficiency, cutting fat in the supply chain and utilizing robots.
  • Offer new features: Sell enhanced products to existing customers, adding improvements that drive incremental purchases, the HBR Think of a major computer maker whose retail stores offer an experience as compelling as the company’s products.
  • Expand the customer base: Introduce the company’s products to new markets with needs similar to the company’s core, or to markets where it might address a different need, the HBR
  • Bootstrap instead of raising money: “Starting out by raising money can be a big mistake,” says Marty Schultz, a mentor-speaker, angel fund investor and award-winning innovator who has grown five companies with a combined valuation of more than $300 million. “An alternative strategy known as bootstrapping can have much more positive long-term results.”

According to Schultz, one of the core tenets of bootstrapping is talking—as in old-school “face to face”—to every potential customer. Entrepreneurs will quickly see if their idea solves, or doesn’t solve, their customers’ need. This will provide the entrepreneur with a road map for a product or service that will sell and customers will buy. The entrepreneur may find the technology they built was totally wrong; their marketing ideas might be off-target; or they may find one customer that wants to finance them to build their product or service the way their industry really needs it. All valuable things to know for a start-up, providing a better first step than raising money.

“Among the many ways a startup can see growth, bootstrapping is a great option,” says Schultz.