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Strategic Revenue Growth Planning for Startups in 2024

Strategic Revenue Growth Planning for Startups in 2024

Scale up sustainably... 📈 🛫 Until 2023, tech startups tended to prioritize growth at all costs... "Growth at all costs" is dead... Tech startups have long enjoyed something that Small Businesses never could - the prospect of hungry investors queueing up to throw them money. Now that the funding winter is biting hard and VCs are much more discerning in investing, many tech startups are scrambling to staunch their bleeding and survive long enough to see the light at the end of the tunnel. Here are 3 lessons tech startups could learn from Small Business: ✔️ 𝙄𝙛 𝙩𝙝𝙚 𝙣𝙪𝙢𝙗𝙚𝙧𝙨 𝙙𝙤𝙣’𝙩 𝙢𝙖𝙠𝙚 𝙨𝙚𝙣𝙨𝙚, 𝙙𝙤𝙣’𝙩 𝙨𝙩𝙖𝙧𝙩 𝙬𝙧𝙞𝙩𝙞𝙣𝙜 𝙞𝙣 𝙞𝙣𝙠. Many startups operate on the principle of aggressive growth, forsaking profitability. They prioritize volume even if it means jeopardizing profitability per sale. In contrast, small businesses operate with a different mindset. For them, profitability isn't about sheer volume; it's about ensuring the right margins. ✔️ 𝙎𝙚𝙚𝙠 𝙛𝙞𝙧𝙨𝙩 𝙩𝙤 𝙪𝙣𝙙𝙚𝙧𝙨𝙩𝙖𝙣𝙙 𝙮𝙤𝙪𝙧 𝙘𝙪𝙨𝙩𝙤𝙢𝙚𝙧𝙨. With the luxury of abundant funding and the drive for swift growth, startups sometimes launch products without genuine product-market fit (PMF). Small businesses, deeply rooted in their communities, often have a profound understanding of their customers' needs. Many of these businesses grow incrementally, validating each step with real customer feedback, akin to 'beta tests'. This methodology ensures they don't overcommit resources on unproven ideas and reinforces their product-market fit over time. ✔️ 𝙒𝙝𝙚𝙣 𝙩𝙝𝙚𝙧𝙚’𝙨 𝙤𝙣𝙡𝙮 𝙤𝙣𝙚 𝙧𝙪𝙣𝙬𝙖𝙮, 𝙮𝙤𝙪 𝙝𝙖𝙫𝙚 𝙩𝙤 𝙝𝙞𝙩 𝙩𝙝𝙚 𝙜𝙧𝙤𝙪𝙣𝙙 𝙧𝙪𝙣𝙣𝙞𝙣𝙜. Startups were used to extending the runway indefinitely, so long as they make it long enough to reach another funding round. If VC funding isn’t available, then there’s only one runway, and you’d better be off the ground before you reach the end. Unlike many startups, small businesses have always operated with a finite runway. There's a pressing need to be profitable from the onset. This approach often cultivates a culture of adaptability, resilience, and financial discipline, which serves them well in the long haul. What say you, fellow entrepreneurs and business leaders? Are you still going full throttle? Or are you prioritizing on sustainable growth? I am Stephen Tan, and I write about #leadership, #management and #fundraising. 👀 my latest posts here: https://lnkd.in/g7j29kqU 🙋 Follow me on LinkedIn: https://lnkd.in/gPAgBfaT #entrepreneurship | #startup | #investment | #VC | #strategy | #motivation #LBFAlumni | #skyhightower

Startup Failure Rate Statistics (2024): - The failure rate for new startups is currently 90%. - 10% of new businesses don’t survive the first year. - First-time startup founders have a success rate of 18%. - The average cost of launching a startup is $3,000. - Payroll is one of the highest costs a business incurs. - 34% of small businesses that fail lack the proper product-market fit. - 22% of startups that fail don’t have a sound marketing strategy. - The average venture capital firm receives more than 1,000 proposals per year. - Approximately 30% of startups with venture backing end up failing. - Around 75% of all fintech startups crash within two decades. - Startups in the technology industry have the highest failure rate in the United States. #startup #business https://lnkd.in/dS8KtBjj

Start ups don't run out of money, they run out of the time that money has bought them. Don’t let this be you! 34% of startups fail after not finding product-market fit (or at least product-segment fit) before reaching the end of their runway.* What this really means is that you haven't been able to achieve what you need to in the time that money had bought you. To avoid this, have a clear definition of what the next milestone is. Then write down your strategy for how you're going to achieve it to align around what matters. This could take the form of testing particular hypothesis as well as building up those strategic relationships. It's so easy to get distracted on all the opportunities in front of you. But by allowing this, you're diluting your efforts. What's more, that ultimate outcome needs to stay consistent for long enough for it to be delivered. Focusing on the right outcome gives you a north start to aim for. It frees you up to test out and shift how you get there. It leaves space for you to learn from your early iterations. Most importantly, what does this mean you're going to stop doing? How are you going stop doing anything but the highest impact-delivering activities? This can be the hardest thing to let go of, but will 10x your effectiveness. Switching from early pre-MVP days to PMF and then growth mode can be tricky. It requires shift in methodologies and focus. If this is something you would like support with, get in touch! *

Startups: MVP Alone Won’t Cut It in 2024. To raise capital, you need more than just a basic product. Here’s what investors want: • A strong team • Big market potential • User growth • A solid business model • Defensibility The MVP is just the start. Importance of an MVP An MVP lets you test your idea quickly. It helps you get feedback and validate your market assumptions. Early traction is key before you invest more. But, in 2024, an MVP alone won’t secure funding. What Investors Look For Investors need more than an MVP: 1. A strong, experienced team. 2. Clear market potential and path to product/market fit. 3. User growth and engagement. 4. A solid business model and financial plan. 5. Defensible position through IP or other means. → Risks of Building an MVP Too Soon Building an MVP too early can be risky. Without enough resources, your MVP might lack features and have a poor user experience. This can harm your chances even after raising funds. Timing is crucial. Make sure you have the resources to improve your MVP based on feedback. → Alternatives to Traditional MVP Some startups use different approaches: 1. Concierge MVP: Manually provide the service to test the concept. 2. Wizard of Oz MVP: Automate the process manually behind the scenes. 3. Piecemeal MVP: Combine existing tools to create a basic version. → Conclusion An MVP is valuable but not enough for 2024 funding. Investors want a complete package: a strong team, market potential, early traction, and a viable business model. Timing your MVP development is key to securing funding and long-term success. —--------------------------------------------------------------- Hey, I’m Mohit Srivastava Follow me for more tips on product development and technology. I offer valuable, knowledge-driven, and actionable advice on current trends. Want to develop your product and launch in 2024? I help Founders make their dream projects come true, by helping them with everything that is “tech”.

In 2023, startups faced tough economic times, adapting with innovative growth strategies beyond traditional funding. Embracing self-funding, government grants, accelerators, and flexible hiring were key. Lean management and outsourcing further streamlined operations. Each startup's path is distinct, shaped by its unique challenges and opportunities. As we move into 2024, what fresh strategies should startups explore? Share your ideas. For more on thriving amid economic challenges, click here: https://lnkd.in/dWAt45c9

Why do 80% of startups fail? the statistic often quoted is that 80% of startups fail within their first few years. While that number can be a bit misleading depending on how you define "failure," there's definitely truth to the high failure rate of startups. Here are some of the most common reasons: Lack of product-market fit: This is probably the biggest culprit. Startups often fall in love with their own ideas without validating if there's actually a market need for them. This can lead to building products or services nobody wants, which is a recipe for disaster. Running out of cash: Cash flow is king, and even a great idea needs resources to survive. Startups can run out of money due to poor financial planning, underestimating costs, or not securing enough funding. Inadequate team: Building a successful startup requires a strong team with diverse skills and experience. Lacking expertise in crucial areas like marketing, finance, or product development can hinder growth and lead to failure. Competition: The business landscape is fierce, and startups often face established competitors with more resources and brand recognition. Failing to understand or differentiate themselves from their competition can leave them struggling for market share. Flawed business model: Even a great product needs a sustainable business model to generate revenue and support growth. Unsustainable pricing, unclear value propositions, or inefficient operations can all doom a startup's chances of success. Other factors: Regulatory hurdles, legal challenges, poor marketing strategies, and even bad timing can also contribute to a startup's demise. It's important to remember that failure is not the end of the road for many entrepreneurs. They often learn valuable lessons from their experiences and come back stronger with their next venture. Additionally, the 20% that succeed create significant economic value and innovation. If you're considering starting your own business, be sure to thoroughly research your market, build a strong team, and create a sound financial plan to increase your chances of success. #business #startupstory #startupsuccess #growthhacking #failuretosuccess

World Business Chicago, the city's economic development agency, announces the inaugural Future-of-FinTech Week, September 23-27, 2024. #Registration for invite-only #investor and #startup events is now open. All Chicagoland region fintech and insurtech #entrepreneurs are encouraged to contact World Business Chicago to join the official startup #portfolio. Building on the success of the city's flagship Chicago Venture Summit, Future-of-FinTech Week will bring together industry leaders, entrepreneurs, investors, and innovators to explore the future of finance in Chicago. "Chicago's position as a global leader in finance and innovation is no accident—it's the result of our city's deep-rooted commitment to fostering inclusive economic diversity and #growth," said Chicago Mayor Brandon Johnson. "Future-of-FinTech Week is an #opportunity to build on our legacy by empowering the #nextgeneration of #fintech innovators. As fintech continues to thrive in our city, the efforts we lead today will ensure that Chicago remains at the forefront of economic opportunity, creating jobs for Chicago residents for generations to come." "Future-of-FinTech Week exemplifies how we drive #collaboration between innovative startups and established industry leaders, advancing a truly inclusive and equitable circular economy where both startups and mature companies thrive," said Charles Smith, Vice Chair of World Business Chicago and CEO of CS Insurance Strategies, a division of MMA. "Chicago is uniquely positioned to lead in the fintech space, and World Business Chicago is deeply committed to fostering the success of local entrepreneurs, growth capital firms, board members, and the city's thriving fintech ecosystem." World Business Chicago manages a portfolio of programs to attract growth capital for local entrepreneurs, attract STEM talent for emerging companies, and grow the region's innovation economy with corporate, university, and national lab partnerships. Their programs include the city's flagship startup conference the Chicago Venture Summit series, the startup growth and capital attraction program Startup Chicago, STEM talent attraction and retention program, ThinkChicago, and corporate-startup program, Enterprise Chicago. "Small businesses and entrepreneurs are a critical driving force behind economic innovation and job creation," said Phil Clement, President & CEO, World Business Chicago. "Future-of-FinTech Week is designed startups to connect start-ups with investors, resources, and the networks needed to fuel their growth. Phil Clement Lauren Backe LaForce Baker Christopher Chaidez, CGBP, CDMP Jalen Boney, MSED Trenton Dunn Owen Dispensa Robin Ficke Myrna Farmer Deprice Hunt Himashi Jayasundera Tana Francellno Andrew Hayes Joanna Madigan Anel Montes Marchan Abin Kuriakose Hannah Loftus @ To share your startup story write us on - [email protected] #WorldBusinessChicago

We’re in the midst of a startup revolution, and it’s more than just exciting - it's transformative. Waves after waves of entrepreneurial activity are doing more than just creating headlines; it’s reshaping the very fabric of our economy and boosting productivity in remarkable ways. While in the 20th century, only about 20% in America went to college and only 1% of them chose to be an entrepreneur, here now, in the 21st century almost 20% of college graduates would prefer to launch their own ventures!! Imagine, we already have created more new wealth than the entire last century. Start-ups are driving innovation by introducing new solutions, enhancing efficiencies, and challenging the status quo. They’re not only crafting the next wave of cutting-edge products but also redefining how industries operate. The ripple effects of these ventures are being felt across various sectors, sparking a surge in productivity and creating new growth opportunities. What’s particularly fascinating is how start-ups are pushing the boundaries of traditional business models. They’re leveraging technology in unprecedented ways, streamlining processes, and discovering fresh approaches to age-old challenges. This entrepreneurial energy is revitalizing industries and setting new standards for what’s possible. As we witness this dynamic shift, it’s important to recognize the profound impact these start-ups are having on the broader economy. They’re not just participating in the economic landscape; they’re reshaping it. #StartUps #Innovation #Entrepreneurship #BusinessTransformation #FutureOfWork