The reason why most startups fail during their first year is not because they do not achieve their business goals. It is actually achieving the wrong goals that make them fail. One of these goals is to create relationships with important parties. Any business with good skill, talent and management require a reliable streamline of clients, which could only come from other places.
Business competition is not necessarily the enemy. If two boxers do not have an arena, there is no game at all. Building the blocks for good competition is important. Tesla’s principle for providing their competitors freedom to use their electric car patents does not make Tesla a bad investment, but it rather makes the electric car market bigger and helps retain the international interest with electric cars.
What most Business Processing Outsource (BPO) companies and other customer-service related businesses fail to do is value their employees. Having yearly incentives or bonuses is not an incentive enough. Allowing your employees to retain their social lives and humanity while you ask some of their time and talent to offer to your company goes a long way. Employees also want to feel valued in a positive, growing environment not focused on profitability but more of learning.
Consultants are more than the people who train your head of staff and other employees. They are the backbone of industrial influence. You could get good sales and marketing leads if you develop good relationships with your consultants.
Actual data and information is the only way innovators could convince investors that their product or service is a viable and growing investment. For long term plans, crowdsourcing is an efficient way to drive up a startup’s capital cost. With great information on hand, startup companies could experiment with different approaches, products and costs in allowing their innovative edges to grow.
Investors want to know the feedback from the public regarding an innovative new product. An orange-flavoured beer product is absurd, but with crowdsourced information that proves the innovative flavour is something that can sell, considering the demographic to ensure that entrepreneurs have hit their marks, innovation could have a chance to flourish. A few more adjustments will be needed to ensure that a product or service finds its “sweet spot” in the niche market, and its overall potential in the mainstream market.
2. Actual Data
Feedback is actual data, but performance and feasibility information could be driven by crowdsourcing. Online gaming companies have made use of this strategy by implementing “free to play” periods for their beta versions of games. Collecting information and feedback from the communities interested in such games, introducing innovation can rock or smoothen the product or service without harm to the brand or the sales.
3. Multiple Data Sources
To ensure the transparency of information collected, crowdsourcing provides an opportunity to access multiple audiences to ascertain the innovative product or service’s capacity to deliver its return in profit. Make it clear how these different sources could receive benefit from the startup’s products and service, and see the real returns the innovative idea could have.