Posted on November 23, 2016
Start-Ups Should Have a Perfect “Go To Market Strategy”
Start-ups are all the rage these days, entrepreneurs as young as 13 showing up on the hemisphere with mind blowing ideas has become commonplace. India is currently ranked third, close below China in the number of start-ups that were born in the country. While the praises are flowing in and the market is reacting positively to the trend with increased investment, there remains a tiny hole in the umbrella.
The missing link
Most of the start-ups are currently operating on a B2C (Business to customer) basis and facing various challenges in the process, such as:-
- The advent of the copycat culture i.e. similar businesses coming up in a short span of launching.
- Impact of extremely restricted marketing budgets and lack of supportive distribution strategy.
- Unpreparedness to combat the market’s rejoinder.
Let us see the case of Handspick, later rebranded as DonebyNone; an online marketplace dedicated to women apparel and accessories. The company raised funding of $2 million from SeedFund back in 2012. Soon after, it had carved a niche audience for itself but just when things started go right, they went left instead. In December of 2014, the company posted a cryptic goodbye message and went offline.
On further probing, it was concluded that the founders were not prepared to handle the demand of the products or justify the pricing of the same. People were shocked to see the demise of the label but it surely made for a valuable lesson.
But as John Wooden has brilliants put, “It is always on focusing not on the mistakes but the lessons learned from them.”
What if we told you that the solution to all the above can be summed up in 4 words-
Go-To Market Strategy
A comprehensive guide for start-ups to enable them to create a strategy that correlates your product to the market and essentially to potential customers.
In simpler words, it is like a recipe that lists out all the ingredients as well as their substitutes with address of shops nearby that are selling them. Further, it explains the process of cooking the dish detailing every step. To go ahead, it gives you more than one options to present the dish with the available material in order to make it attractive to the eyes. The special additions are ways to check the authenticity of the taste and corrective measures in case needed.
A GTM can be considered a recipe for a successful business.
Through a GTM, a start-up answers the following questions:-
Why are the answers important?
Such strategizing ensures higher productivity and encourages better results that a start-up needs. Another reason why a start-up should have a go-to market strategy is because it provides the entrepreneur a look into how it really will be. A simple idea is converted in an operational business through a perfect GTM strategy.