Why do 90% of tech startups fail? Is the market still not supportive to newcomers or the products aren’t valuable enough to hold the customer’s engrossment? Shockingly, neither of the 2 most feared factors is accountable. Approximately 5,43,000 new businesses launch every month and the numbers will increase. Case studies, spanning across markets have revealed internal issues, mostly managerial that pull back most new businesses to make it to their 5th year. On the contrary, the ones that succeeded, have inspiring stories behind the curtain that brought them this far. Outlining the 3 most promising tech products, it is imperative to understand the common virtues that worked in their favor.
Not only these enterprises sustained their product’s relevance with the trends but also kept the leadership basics intact. Since the approach to technology is at the epicenter, these enterprises have simplified processes, are easily accessible and ensure productive returns.
Here’s what the most reputed tech startups have to educate us.
Ideation – Fill the gaps & design a real-time solution to the unaddressed problem
Flocking to already proven business models might produce immediate returns but backfire in the long haul when you exhaust out of original ideas to sustain the brand quotient. Hence, identifying a market issue that has been unattended for long with cost-effective solutions is the key to drive industrial attention. Take Google, for example, a startup that focused on providing data to web users and upscales the importance of search engines. However, most new business owners get too confident about the scope of their product and depend entirely upon the outbound communications to attract business.
Execution is the differentiator – designing an appropriate business model
If not executed smartly, even the most unprecedented ideas fail to gain any substantial traction. In the past decade, successful startups had one thing in common – they worked hard on their process architecture. Executing is the toughest of all phases while building a new business and demands deep product planning, resource aligning, utilizing the available experience and ultimately, creating a solution that delivers value in the shortest possible time.
Following up with the ideated business model, you must ask as to what matters the most. A simple way to do is verifying decision making with the CAC/LTV Rule that states –
CAC < LTV
Cost of acquiring the customer must always be less than the lifetime value of the customer.
Asking for an increase in valuation, at the right time
More money may not always be the need of the hour. Businesses that possess future outlook while think beyond attracting investments only, survive longer than those who target fundraising as their ultimate goal. Similarly, an increase in valuation must be asked after you have qualified with profit margins, revenue, growth stats. Ask yourself if,
- The business model has performed fairly well and deserves further support to accelerate working capital, infrastructure scalability and resource expansion.
- The product is in Beta test and has a few customers to validate. Noteworthy, even if the product is ready to go live but doesn’t have customer validations, the valuation may not increase.
Not shying away from iterative introspection
Are you doing everything right? Any changes required? Assuming everybody remembers what you said last may not hold. Consistent communication is essential to make sure everybody has imbibed the vision statement. Ask yourself, have you conveyed yourself appropriately? Ask for validations from your people. Encourage them to point mistakes and suggest alternatives to the level that makes you mildly uncomfortable.
How these 3 popular tech startups positioned their products so well
Amidst the industrial 4.0 quiver, Seebo addresses manufacturing losses in production yield and quality. Using the process-based machine learning, Seebo identifies process inefficiencies in real-time and mitigates them. As a staunch believer of deploying automated and predictive systems alongside production lines while making use of IoT. Thus, empowering manufacturers to predict and prevent production losses is an impressive step ahead towards process optimization.
Lior Akavia – CEO and Founder (Seebo)
“While many companies look to leverage AI , we pioneered process-based AI, specifically for process manufacturing. The true revolution lies in having contextual insights to process inefficiencies, in order to better understand their root causes, and predict their occurrence to prevent them from happening.”
RapidPricer is assisting global retail brands with its automated pricing solution that takes into account the quality of the product and more importantly, its expiry date. Since retails stores face difficulties in shortlisting products for discounts, Rapidpricer brilliantly predicts the shelf life of a product and sends out a notification to the store inventory system. Making use of devices such as cameras to record the health state of the products, RapidPricer is a classic example of contemporary IoT solutions that deliver value to the business. Bringing together AI and IoT together, the product aims to enhance decision making in promotions and inventory management.
Kiran Gange – CEO and Founder (RapidPricer)
“Retailers face a tremendous challenge simply staying up to date with the correct price based on costs, competition and internal pricing rules, these tasks can easily be automated. Further, adding the power of IoT data, mathematics and artificial intelligence through our solution, retailers can hit “autoplay” for pricing and focus on strategy instead of execution.”
Bygones shall be the days when enterprise data is stored and analyzed from a centralized data center. Mobodexter is enabling its enterprise IoT clients to store data and analyzed locally closer to the systems that produced it. Mobodexter’s edge computing solutions that bring IoT and Blockchain technologies together are creating enormous opportunities for businesses to drive digital transformation by cutting down the dependency on the cloud. This unique approach helps to improve the performance, offers better cybersecurity and lowers the cost of operating the cloud. Currently, the IoT data travels back and forth in the cloud that results in lower response time, data privacy issues and higher costs in their digital transformation resulting in suboptimal business performance.
Mouli Srini – CEO and Founder (Mobodexter)
“The market was driven by digital transformation to cloud computing over the last decade. We are now seeing the next generation transformation happening where Edge computing adoption is ramping up to address the key concerns with cloud adoption. IoT Edge computing needs a different set of hardware and software capabilities to pick up mainstream adoption. Mobodexter’s products and solutions are uniquely designed with mainstream IoT Edge adoption in mind. Hence we are able to help our clients to achieve phenomenal efficiencies in their IoT digital transformation journey with our innovative products and solutions.”
Always remember, the market tends to forget brands quickly that don’t communicate consistently. No matter how explosively you arrived, ignoring brand communication could boomerang. Thus, utilizing platforms in the digital ecosystem to gain traction should never be overlooked. Stay consistent, stay transparent and stay innovative while communicating your opinions to the audiences. Henceforth, lucrative leads will follow naturally.