How can a non-tech startup become successful in technologically driven era?
The world is seeing a tremendous growth in the number of startups coming up every year. India too is not far behind the world in this trend. Many Indian startups have been able to raise millions of dollars of funds. But, looking at the funding, we can clearly see that tech startups are a favourite among the investors. And, non-tech startups don’t find many takers.
Before divulging any further into this, we first need to understand the fundamental difference between a tech starup and a non-tech startup.
Tech V/s Non-tech Startup
By definition, a tech startup is the one that uses “Technology” at the core of its business. A business that is based on technology and cannot exist without it is a tech startup. The examples would be ecommerce companies, I.T companies, etc.
On the other hand, a non-tech company is the one that deals with consumer products or services with technology not being an essential part of the business. But, this doesn’t mean that non-tech companies don’t use technology at all. They do but only to enhance their sales or user experience. A local food delivery chain, a health care company, a grocery chain, agro-based businesses, etc. are some of the examples. The technology they require is at most an app and a website.
The basic difference is that technology lies at the centre of a tech company while it is used only as an enabler in non-tech companies.
Non-tech Startups in a Technological Era
Everything around us is tech-enabled these days. We cannot even imagine our world without technology. And maybe that is why there is such hype around “tech start-ups”. Every other aspiring entrepreneur wants to startup a tech startup. It is considered to be “cool” and “hip”.
It’s not just entrepreneurs, but venture capitalists and angel investors too are more eager to invest in the tech startups. This is probably because tech startups are more scalable. They have the potential of going global. The more scalable a startup is the more would be its net worth. And that is what an investor wants, a handsome return on investments.
But that doesn’t mean non-tech startups don’t have the potential to grow. On the contrary they have an immense potential of growing. Since there are no technological risks involved, they are more of a safe bet. Many Indian investors and VC’s are acknowledging this fact. As a result, many angel investors and VC’s like Indian Angel Network, Mumbai Angels, Chennai Angels are increasingly investing in non-tech startups.
The ways in which a non-tech start-up can grow
This brings us to our original question as to how can a non-tech startup grow in this technologically driven area. As a non-tech startup, you need to remember that you need to rely on yourself and your own ability rather than technology. You not only need to focus on acquiring customers but also on retaining them and building long-term relations with them.
The following ways would ensure growth for a non-tech startup:
1. Concrete goals:
You should know your destination before you start the journey. Ask yourself what do you want to achieve from your startup? With long-term goals, set short-term goals too. Make sure your goals are quantifiable. Goals like ‘n’ amount of sales, ‘x’ no of customers etc. are good. They help you understand where you are and where you should be?
2. Create a niche:
We are often tempted to go after a larger market. But, that is not necessarily profitable for everyone. Like they say, “You cannot please everyone”. It is true for the start-ups too. You cannot make a product that is universally loved. Instead of focusing on making everyone like your product, focus on only those who can love your product.
3. Build your presence:
Even before you have launched your product, try to build a presence of your startup. Focus on both online and offline presence. Write guest blogs on influential blog-posts. Update daily on your social media accounts. Meet more and more people and tell them about your startup. Start networking. Encourage people to try and review your products and services.
4. Build Relations:
For any startup, building relations with the customers is very important. But, for a non-tech startup, the importance is greater. This is your key to grow. If you are able to create a loyal customer base, nothing can stop you from growing. Build a strong relation with your customers by being proactive.
Understand their requirements and provide complete solutions rather than just products. Interact with them empathetically. Listen to them. Make buying from you a pleasant experience for your customers.
5. Use technology as an enabler:
Being a non-tech start-up doesn’t mean you cannot use technology at all. You should use technology to improve the over-all customer experience. In a technologically driven era like today, online presence is very important.
Companies like Ola, Uber, Swiggy, Foodpanda, etc. are not essentially tech companies. But, they use technology to create a seamless user experience. You can do the same. Create user-friendly website and app to make real-time interaction with customers possible.
To become a successful startup, the important factor is not technology; it is dedication to your goal. Everything boils down to creating and sustaining long-term relation with customers. If you can do that, you will grow.
https://www.peerbits.com/blog/secrets-behind- successful-non- tech-startups.html