The world is not a happy place right now. Economic turmoil has led to distrust in businesses, governments, and even the people you know.
This means that startups have to work harder than ever before to build trust with investors and customers alike. But there’s also a bright side to this murky situation. The turmoil has created an opportunity for courageous entrepreneurs who are willing to take risks and make bold moves that will reshape the global economy for the better. To succeed as a startup in these trying times, you need a clear vision of where your business is going and what your company stands for. Here are some useful tips on how you can grow your startup during a recession — and thrive in the long term.
Be clear about your company’s purpose
Purpose is the reason for existence of your business. What problem does it solve? How does it make people’s lives better? How does it contribute to society? By having a clear purpose, you can make sure that your startup stays focused and achieves its goals. It also helps you to communicate your goals and message to investors, customers, and the people you work with. The best way to clarify your purpose is to write down your mission statement. A mission statement is a clear, concise sentence that sums up your company’s purpose. Make sure to put it at the top of your website — and remind yourself and your team of it on a regular basis.
Focus on quality, not quantity
During a recession, you often see businesses trying to cut corners and increase profits by investing less in quality and customer service. This might work for the short term, but it’s harmful for the long term. Quality is what makes your business stand out. It’s what helps you retain customers over the long term. A customer may come to you because the price is cheaper, but they stay because the quality is better. When funding is tight, you may have to spend less on certain aspects of your business. That’s okay. But don’t cut back on the things that really matter for your business. If you have a great product or service, but it’s delivered in a poor way, you’ll have a hard time building a long-term business. You may have to invest more in marketing and PR to compensate for lower spending on things like materials and distribution. But that’s okay too. Focus on making your product and service as good as possible — and then let the world know about it.
Build trust with transparency
Trust is what brings customers and investors to your business in the first place. It’s also what helps them weather the ups and downs of the economy. By increasing transparency in your business — especially when times are tough — you build trust among your stakeholders. Transparency can take many forms. It could be publishing financial reports. It could be sharing your search for funding and the numbers of your last round. It could be launching a beta with customers before your product or service launch. Transparency goes beyond just the numbers. It’s about being open about your company’s goals and the challenges you face. It’s about sharing your plans for the future and involving your stakeholders in the decision-making process. It’s about responding to challenges and controversies with honesty and candor. It’s about putting your customers and the people who work for you first — even if it means disappointing other stakeholders.
Go beyond digital and invest in the physical world
More and more startups are focusing on the digital world only. This can be an advantage in a recession, because it means you can operate with lower costs. But you can also grow your business by investing in the physical world as well. This could mean investing in better customer service. It could mean increasing your marketing efforts in offline channels. It could mean investing in new products and services that are more tangible. Investing in the physical world can help you create new revenue streams and deepen your relationship with customers. You can also use it to take control of your narrative and push back against misinformation in the digital world.
Don’t be afraid to shake things up
At a time when many startups are looking to tread carefully and avoid risk, it’s tempting to take a more conservative approach. However, this is not the best tactic in the long term. You have to shake things up — shake up your industry and shake up your own company. This can mean doing things that are more risky but could also bring you a bigger reward. It could mean setting aggressive growth targets and taking more risks in your marketing. It could mean trying out new ideas that seem crazy to many people. This is a time when you can really make a difference and shape the future of your industry. You can’t do that from the sidelines.
The global economy is in a state of flux. While this may be scary for some, it is also a great opportunity for entrepreneurs who are willing to take a risk and make bold moves that will reshape the global economy for the better. To succeed as a startup in these trying times, it is important to have a clear vision of where your business is going and what your company stands for. With these tips, you can grow your startup during a recession and thrive in the long term.