Published on May 5th, 2015 | by Jose Vasquez13
How Startup Tech Companies Lose Momentum Over Time
Many startup tech companies eventually lose steam, but you can avoid that fate by paying careful attention to your growth rate.
Startup tech companies usually either fizzle out immediately or pick up momentum and start growing at a rapid rate. If you’re in the latter camp, your business could be at risk of growing too slowly or too quickly. But even if you overcome that hurdle and eventually turn your business into a long-term sustainable functioning establishment, you may fall victim to an unfortunate, drawn-out fate.
Tech giants like Apple and Microsoft make it seem like it’s natural for small tech startups to eventually build themselves as a major player in the country’s economy, but for every consistent innovator, there is another major tech player, like Blackberry, that is unable to maintain a fast enough pace to keep up with the changing market. It’s unfortunate, but most tech companies eventually stop being able to innovate and refine their products, and eventually decline.
So how can your startup tech company avoid this fate?
First, you’ll need to ensure you have a flexible business plan. Don’t put all your eggs in one basket by focusing on just one product or service for the lifetime of the company. It’s a fine short-term strategy, but eventually you’ll either need to grow into new niches or find new products to develop. Technology changes too quickly for you to be able to rely on one moneymaker.
Next, you’ll have to analytically track your growth. If you’re growing too quickly, make sure to carefully pace the expansion of your team and conservatively project the next several years of your growth. If you’re growing too slowly, you’ll need to work with your team to find new ways to innovate or new products you can create.
As you start growing more steadily, keep a careful watch on your competition and changing trends in the world of technology. The best way to keep yourself from losing momentum is to stay on the leading edge of industry trends and adapt to them by finding new ways to market or remold your product.
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Matt,Thanks for the write up! It was great having you out today and I am loinokg forward to our joint meeting in a couple of weeks, perhaps Friday June 29th?Will