Big companies often start their journey as small start-ups. The journey from start-up to big organization involves strategy, execution, and vision of the future. If we look into the fundamental aspects of big organizations and successful start-ups, there are Five Key points that have contributed to their performance in both cases.
Successful start-ups are usually unstable at the beginning of their journey. However, if these start-ups can adopt a few best practices of big companies, they have a greater chance of flourishing. Let’s look into the factors that big organizations and successful start-ups have in common.
In the current business landscape, agility is one of the vital factors that contribute to the success of any business, be it a start-up or an established company. Most businesses are accelerating their digital transformation in order to stay relevant to the market. This technical disruption has evidently shaken up even the most established companies. The companies and start-ups that have proactively adapted innovative methods during this period have ensured their survival through unprecedented instability.
Every business, be it a big company or a start-up must become agile to become successful and sustainable. Redesigning organization structure, conducting A/B testing, or strategizing for crisis management with product development services every business activity should have the agility to modify its ways and adopt innovation to drive more value to the customer.
2. Prioritizing and Rejecting what’s not a Priority
“Do Less, Then Obsess”- As per Morten Hansen, the author of ‘Great at Work’, this principle is what drives success to big companies and start-ups. To become a top performer in any business, it is essential to learn the skill of prioritizing and rejecting anything (no matter how big the opportunity is) that does not align with the priority. Assuring laser-like focus on the priority has always helped businesses drive success faster than the companies that don’t follow this principle. Big companies and start-ups have evidently driven high profits through the implementation of this principle with staff augmentation services.
Contrastingly, if a company or start-up that has gone down the opposite road has welcomed more stress and fewer profits. In such cases, they have to juggle multiple business operations and end up with some but not all work done along with huge stress.
Big established companies and successful start-ups always focus on their priority and ensure 100% commitment to make that work near to perfect. They take help of experts and seek advice from business growth consultation.
3. Matching Passion with Purpose
Passion is what drives founders of big companies and start-ups to make their ventures successful. However, just passion cannot guarantee success. It surely does bring commitment and dedication but matching passion with a purpose makes these companies unbeatable. Founders, be it of a big company or successful start-up, must derive inspiration from their passion while deciding on their contribution by figuring out the purpose.
A founder who is not passionate fails to inspire others. On the other hand, an extremely passionate founder may fail to drive success due to the lack of purpose. Therefore, most big companies and successful start-ups are flourishing only because they have succeeded in matching passion with a purpose.
In a nutshell, passion drives people while purpose drives sales. A company or start-up can not perform well if they are not clear about their purpose. What are you contributing to the customer, society, employees, and company? The answer you get for each helps in defining a purpose statement.
4. Value Creation
Big companies and successful start-ups are well-established as they can create value for their target audience through their products or services. How to measure whether a product/service can drive value? The answer is researching and setting metrics that can justify value creation. The emphasis should be paid to, measuring value metrics and not volume metrics. For example- One logistic company tracked the extent and time to which goods left the warehouse, and they achieved a 99% shipment rate, although the customer who received the products complained that only 65% of the shipments arrived on time.
Also Read: 8 Easy Steps of Product Development
Whether the customers are receiving their parcel when they need it is a valuable metric for the logistics company. 99% of the metric was an internal goal whereas 65% metric measured customer value. It does not matter if the logistic company is receiving a large volume of orders but customer satisfaction is significant for the sustainability of the company.
Setting the right metrics also help businesses to realize the loopholes in their process and thereby improve it. Be it an established company or a small start-up, one must always evaluate their value-creating metric to ensure sustainability. It is essential to add value to your customer to drive success.
5. Upgrading Knowledge With Time
‘Learning loop’ is the process of learning, unlearning, and relearning an activity over and over again to improve it. Most big companies and successful start-ups strive for excellence in their field utilizing this learning loop.
The worst mistake that a business can make is to stop learning and upgrading its knowledge. Most successful businesses have the determination to improve and this is where they make themselves distinguished from any other business. Be it a hard skill or soft skill, big companies and successful start-ups always strive to upskill themselves. Moreover, they ensure more learning opportunities to help their employees learn professional skills to stay relevant in the current business landscape.
Continuous learning helps companies to outgrow themselves and achieve better results in the long term. It is also an essential factor for sustainability.
The Bottom Line
A successful start-up may differ in the organizational structure from an established company. But if we dig deeper, there are some common factors that make these start-ups successful and capable enough to compete with the big companies. The number of unicorn companies is increasing every passing day. It is no secret that the world is embracing the start-up culture. Amidst several differences, a successful start-up and a big company have these five key factors that contribute to their success.
Scrum Digital offers startup consulting services to guide them through the journey of success amidst digital transformation. Our MVP development company help start-ups by assisting them in the ideation stage to build up quality products and scale these products to ensure business growth. With our professional start-up consulting services, we pave the path for successful start-ups to compete with the big giants in the market.