https://number8.com/wp-content/uploads/2019/12/bethany-legg-75nbwHfDsnY-unsplash.jpg 533 800 number8 https://number8.com/wp-content/uploads/2020/01/white-logo.png number82019-12-23 09:30:172019-12-09 17:59:26What the Fastest Growing Companies Have in Common
Starting or running a business is a complicated process. It requires commitment, dedication, planning, and a bit of luck. Many businesses fail within the first one or two years, which can cause severe financial loss along with emotional distress. All entrepreneurs dream of having a thriving company, and many reach this goal. Here’s a look at six common characteristics that all fast-growing companies share for some inspiration:
Entrepreneurs are always hardworking and driven, but they need a strong product to succeed. Thriving start-ups always have a revolutionary product that fills a vacuum, providing exactly what customers need. They provide must-have products or experience to clients. Sometimes the niche already exists, while at others, a product can create a need. For example, social media giants like Facebook and Twitter existed, but LinkedIn created a niche by being a network for professionals.
Focusing on the Niche
Start-ups must be laser-focused on a niche for success and growth. They don’t have the manpower or resources to tackle a large market. Focusing on a niche allows companies to specialize in a specific category and fine-tune their products or services. For example, a web development company for small businesses can use a highly customized approach after comprehensive research. This might keep their customer pool small, but it helps companies develop a distinctive identity.
Specializing in a niche has long-term benefits as you generate enough funds for expansion later. The cosmetics company Huda Beauty is a good example of this. It started out selling high-quality fake lashes and established such a strong niche presence that their products set a standard for everyone else. Today, this company has expanded, including other cosmetic items like eye shadows, foundations, lipsticks, etc.
Don’t Disregard Processes that Aren’t Scalable
Modern entrepreneurs can get advice from multiple sources. One of the most common bits of advice is, “keep things scalable.” While this is sound advice, you still need to focus on specific processes that may not be scalable as companies sometimes need to invest in these too. It helps establish a strong presence while having a lasting impression on a customer’s mind.
For example, some start-ups will coddle customers at first with a lot of personal attention. They will offer one-on-one consultations, discounts, accelerated project timelines, etc. None of this is scalable, but it can help companies develop a reputation for excellent customer care. You can roll back these processes slowly while maintaining sound basic customer care systems for long-term benefits.
Constant Focus on Growth – Timely Growth
It isn’t surprising that fast-growing companies are focused on growth, but not all of it can cause large-scale disruption. Most successful start-ups have a meticulous process in place for expansion. These companies plan a slow, relentless march towards growth until it becomes almost inevitable.
For example, Uber has a precise expansion plan for opening up in new cities. They send feelers out, get to know the new market, connect with drivers as well as customers, before developing a unique plan for new markets. They make sure it is primed for Uber’s network before launching operations. This constant, unrelenting march drives long-term success.
Do Things Differently
Sometimes fast-growing companies succeed by shunning traditional practices. They don’t do this arbitrarily but put some thought and research behind it. They look at established practices carefully, identifying their weaknesses before finding more efficient alternatives.
For example, Yelp is such a success because it stayed away from paid reviews or expert testimonies. It relied on 100% community feedback, which worked spectacularly. Yelp became more trustworthy than any other review platform just a few years after its launch.
Establishing a fast-growing company isn’t easy, but it can be done. Just maintain focus and ensure you have the right product.
Don’t Be Afraid to Outsource
Fast growing companies tend to have a clear sense of their core competencies. Knowing their strengths and weaknesses gives them an edge to take advantage of outsourcing options while they grow.
There are many business functions that may be better handled by a third party, especially during the early phase of a company’s growth. For example, accounting, billing, software development and IT support are all common functions that fast growing company’s may choose to outsource to free up time and resources so they can best focus on the priorities at hand.
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