In the last blog, we discussed the
recent trend of the thought that one needs innovation to launch a startup
business. Contrary to popular impression, your startup business doesn’t have to
be driven by innovation. If you look up the definition of a startup business,
you will find it is ‘a company which is in its initial stages of operation’.
Startups may be founded by one or more entrepreneurs who want to develop a
product or service for which they believe there is demand. This tends to drive
the impression that the product or service has to be unique, but that is not
always the case.
Let us discuss a few scenarios here:
There may be cases where a startup
business improves existing products or services, making them more efficient,
user-friendly, or cost-effective. Their strategic focus may be primarily on
excellence in execution rather than innovation in design or development. These
incremental efficiency drivers find success by refining what already exists.
There may be limited room for innovative
businesses to grow in certain niche markets. Many challenges may restrict them
from optimizing their offerings for other markets. Startups can build off these
innovations by optimizing the product/service to the specialized needs or
demographics without necessarily inventing something new. They can identify
gaps in the local market and provide solutions without introducing entirely new
concepts. These startups will excel by understanding customer pain points and
delivering solutions that meet those needs effectively.
Then we have the factor of the right
timing. For any business, timing plays a critical role in its success.
Sometimes, a startup might introduce a groundbreaking innovation, but it enters
the market at a time that is not apt or is ahead of market readiness. While
these startups might have failed, other startups might pick up these solutions
at an opportune time and have great success. For example, the recent trend of
video-based content creation has boosted video editing apps, many of which were
already available for years but did not get their desired popularity. Another
recently launched app might have had much better success.
Last, I would like to discuss the factor
of cost. Startups providing cost-effective solutions have a critical edge even
without introducing groundbreaking innovation. It can be simple access to
sourcing raw materials or labor costs that can lead to cost efficiency and
drive the startup’s growth.
Even the most innovative idea can falter
without strong execution and strategic planning. Startups that can execute
well, manage resources effectively, and create a robust business model can
succeed without relying solely on innovation.
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