When it comes to startups, a lot of people believe that they can’t compete with established enterprises. However, this is not the case. A startup can definitely compete with an established enterprise because it has several advantages over them.
One example of a startup that has been able to compete with established enterprises is Slack. Slack was created as an internal chat room for employees at Internet giant Yahoo, but it expanded its reach and grew into a business tool that eventually took on Microsoft’s Microsoft Teams and Cisco’s Webex Teams. It now has over 10 million daily active users.
Startups have the benefit of flexibility. They don’t have to worry about the same things as large companies—they don’t have to worry about being beholden to shareholders or board members or other investors, they don’t need to invest in expensive infrastructure, and they don’t need to maintain massive operations. They can be nimble and move quickly.
Another advantage that startups have over established enterprises is the fact that they are usually run by younger people who have fresh ideas about how things should be done which makes it easier for them to come up with new products or services that appeal to customers much better than those offered by older companies who tend not be as innovative as younger ones due to age-related reasons such as lack of energy levels etc..
How Startups Can Compete With Established Enterprises
Here are some ways startups can leverage to compete with established enterprises;
1. Capitalize on where big companies fall short
Big companies are great at scaling up their operations, but they’re often slow to adapt to new technologies and trends. Startups, on the other hand, are nimble and innovative—and they are able to respond quickly when new opportunities arise.
Take advantage of big companies’ weaknesses The most important thing startups should do is to understand what their competitors are weak at and focus on those areas. For example, if you’re looking for a business idea, you can capitalize on the fact that many large companies have poor customer service or outdated technology by creating a company that focuses on improving these areas.
2. Be Smart on Hiring and retaining top talent
One way to ensure your startup succeeds is by hiring the right people. When you’re just getting started, it can be tough to compete with established enterprises for talent.
But if you bring on the right team members who are passionate about the mission of your company and committed to making it happen, then no matter how much experience someone else has under their belt—or how much money they have in their bank accounts—you will always be able to out-work them.
Startups can’t afford to hire people who are just as good as their competition, and they need to retain those people for their company to grow. This means making sure that you’re offering your employees a positive work environment, benefits that match what other companies are offering, and opportunities for growth within the company.
3. Discovering new niches
One way to do this is by finding a niche in the market that hasn’t been served well by existing companies, and then focusing on it. For example, if there are no options for buying clothing online in your area, start your own ecommerce store.
Another way is by offering something that big companies don’t provide: if they don’t have it now, they might never get around to it. Maybe your startup could be the first one in your area to offer 24-hour delivery service on all products, or maybe it would be the first one in its field that offers free returns or free shipping on all products.
4. Establish a reputation for quality
Established businesses often have a leg up on startups when it comes to reputation. They’ve been around longer, so they have more of a track record and can show their customers that they’re trustworthy—something that’s essential in today’s world where consumers are looking for ways to avoid wasting money. Startups might be able to compete with established businesses on price or convenience, but they’ll find it hard to compete with the practicality of being able to trust an existing business.
To combat this, startups need to focus on building their own reputations for quality. A good way to do this is by working with clients who are already well-known in the industry as being trustworthy and reliable. This way, startups can build up their own credibility while also making sure customers are happy with their product or service.
5. Turn customer feedback into innovation
It’s important to remember that while it’s tempting to compete on price and features, your customers want something more than just a good product. They want what you can offer them through your product—the value of the solution it provides to them or their business.
Start listening to your customers, and using what they tell you as an opportunity for innovation. Listen to feedback from users on social media or in person; they’ll tell you what they like about your product, what they wish would change about it, and maybe even some ideas for new features they’d love to see in future versions.
Then take all those ideas and use them as inspiration when developing new features for future versions of the product—and make sure that each new feature solves a real problem for customers.
6. Focus on growth rather than profit
One of the most common mistakes startups make is focusing too much on profit, rather than growth. While it’s true that you need to show a profit eventually, it’s best to focus on growing your customer base first.
Once you have a large enough customer base, then you can start focusing on profitability. Your goal should be to grow as fast as possible while still keeping costs low and profits high. That way, when you do turn your attention to profits, they’ll be higher than any other company in your industry.
7. Partner with established competitors to beat the competition.
One of the best ways to compete with large enterprises is by forming alliances with them. You can do this by partnering with or acquiring startups that have technology that complements your own, or you can partner with established competitors on a joint venture project. This will give you access to new technologies and markets, while also allowing you to leverage the existing brand of your partner or acquirer.
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