A healthy economy comprises various businesses and enterprises, both big and small. In fact, the global economy continues to survive and then thrive because the leaders and players in different industries keep adapting to the evolving needs arising from changing times. In this context, it is easy to see the importance of adapting and innovation, be it a new-age startup or a long-established industry titan.
Come to think of it, innovation is doubly important for startups and small businesses in order to ensure they are able to successfully meet the demands of the people and the community they serve. In reference to startups, it is also important to consider that fact that the world has come to the point where millions of start-ups are launched every year. And in this fast-paced ecosystem, innovation is the key to both survival and growth for startups.
Considering the intense competition start-ups face every day, they simply can’t afford to rely on just the public’s admiration. Besides that, start-ups also need to religiously monitor their industry and keep a track of their competition.
Why? Carefully think how quickly can be technology rendered obsolete today; all it takes to put a company out of business is one new technology with disruptive potential. So, it is imperative for start-ups to innovate on practically a daily basis if they truly wish to keep going.
Startups And Innovation Go Hand In Hand
Long story short, startups and innovation are the ideal allies. And if you’re still wondering why, let us lay it out for you:
- The foremost reason why innovation is important for startups is simply that it gives them an edge over their competition and helps them become and then sustain their lead in the market. You’d be surprised to know just how many companies manage to establish a niche or acquire market share through a new technology but are eventually unable to hold fast to their advantage simply because they failed to abide by the pace of innovation in their market.
- Innovation makes it easier for startups to surmount all kinds of challenges, including the seemingly impossible ones. It also helps startups solve various problems. If everyone in the startup were to concentrate on improving the process or product they are involved in, they will be able to achieve enhanced efficiency, which, in turn, serves as a considerable overall advantage for the startup.
- It can’t be stressed enough how innovation helps startups stay ahead of the curve and establish a significant lead over their contemporaries. As long as startups keep thinking about the ‘what’s next’ in reference to innovation, they will stay a mile ahead of their competition.
- Innovation enables startups to compete with the big names in their industry. Bigger companies, irrelevant of the industry, admittedly have a greater amount of resources to rely on and also the ability to adapt and apply new technologies with relative ease. Hence, startups must consistently and persistently innovate to make sure that big companies do not put them out of business.
- While innovation drives the startup’s strategy, it is the customers who drive the aforementioned innovation. It is also important to remember that innovation driven by customers helps startups keep their promise to their customers and also establish trust and credibility with them.
- Employees are another reason why startups must constantly innovate. The new-age workforce wants meaningful work and autonomy in equal measure. The trend of co-working spaces and freelancing is also on the rise, both of which are increasingly enabling them to network and share and gain new knowledge and skills. Thus, startups must innovate to not only acquire but also retain the best talent in the market.
As surprising as it may sound, a substantial number of startups fail within the first year of their existence just because they either failed to innovate or were unable to. Hence, to succeed in the market, it is important that every startup must make innovation an integral part of their game plan.
About the Author: This article is contributed by Vikram Upadhyaya – Chief Evangelist at GHV Accelerator.