Proto by Adamr @ freedigitalphotos.net |
Remember when you started
your business? Did you have a formal
business plan? Did you keep your plans
to yourself until you were ready to launch?
Did you want it to be perfect, with all your ducks in a row before you
started?
Guess what, that’s not how
it’s done these days. According to Sean
Wise, Assistant Professor of Entrepreneurship at Ryerson University, as small
business owners we could benefit and learn by adopting some of the strategies used by today’s
startups.
At a recent event, he
outlined six ways startups are different today.
1.
Startups
share, don’t keep it a secret
In the past, a new startup
was hush-hush. Everything about it was
kept secret and under wraps until the owner was ready to launch.
Well, not anymore. As part of the customer development process,
the startup lets the customers try it.
In other words, as Wise said, “they get out of the building” and ask
what’s working or not.
2.
Startups
fail fast and often
The end product or service
doesn’t need to be perfect, and so the start up is quite comfortable testing
things out, and through this hypothesis testing learn what to do next. It’s no coincidence, for example, that Amazon
sends suggestions to regular customers.
They’ve tested this strategy and found out what is effective.
Wise’s advice – Let action
not assumptions drive your business.
3.
Startups
don’t write business plans
Remember that lengthy
document – your business plan - that you sweated over before you started your
business? Well no more. Instead startups now use a business model
canvas to scope out their plans.
Using a white board and
post-it notes, the “plan” has a fluidity to it which seems appropriate given
how much your initial plans can change when starting out, and later down the
road. Samples of the model can be found
at www.businessmodelgeneration.com
4.
Startups get ready, fire and then aim
They don’t try to be
perfect, and instead measure the results of their “launch” and adjust according
to feedback.
5.
Startups co create with customers
Instead of approaching the
traditional sources of funding – banks, venture capitalists, etc… these startups
use crowdfunding as a way to get the necessary funds to start up. This process also
involves buy-in from their potential customers, creating a better outcome for
their end product/service.
6.
Startups are innovative looking at ways to
deliver
Differently
A great example of this innovation, is
Netflix. Instead of going to Blockbuster,
picking up a movie, returning it and likely paying the late fees, Netflix came
up with the idea of streaming movies and TV series into your home. You don’t have to go anywhere, and if you
want, can binge watch your favourite series for the same price.
Letting go of the need to
be perfect seems integral to this new approach to starting a business and it’s
a good outlook to have whether you are in startup mode or more seasoned in
business.
So often we get hung up on
everything being just right before we launch, when reality is, there is always
something to learn, change and tweak.
What you would differently if you were starting up
now instead of when you did?