Demand Is Perishable
Timeliness is the Key to Preventing Market Duplication & Maintaining Competitive Advantage
We all know that fresh produce is perishable, but have you ever considered that demand for your service or a tangible product is perishable, too? One of the reasons business success rates are so low is because demand is short-lived. If companies don’t act quickly, their competitive advantage can be eroded or their product can be replicated by competitors. This idea isn’t new, but it is so fundamental to the startup world that it is worth exploring in greater detail.
The Startup Advantage: Malleable Marketing & Fearless Innovation
The advantage of a startup is in its ability to adapt and shift priorities. Part of the success factor is the tenacity to identify problems and overcome them quickly – something startups can do really well given their size and lack of bureaucracy. Startups must achieve a reasonable market position to be a candidate for acquisition – and the gorillas of that particular industry will do everything they can to prevent this from happening.
But what if the gorillas don’t see the shift in the market?
One strategy is to push as quickly as possible to gain market position before the competition can react. This strategy is risky; it takes significant effort and capital – and most of it will be spent before a company can fully understand how the market will respond. But it can pay off in a big way.
Financing Growth: Venture Capital Funding to Prevent Diminishing Demand
Growth comes at a price and key stakeholders need to understand that price. High growth plans require capital to expand operations. One of those options is venture capital. Capital gives you the ability to expand quickly and better prepare for anticipated demand. And if the venture is successful, you’ve taken success and multiplied it, growing the proverbial pie for all involved. How do you plan on financing your growth? How will you prevent the perishability of demand for your product or service?
Contact Ohio Innovation Fund today for further guidance and advising for your startup.