Blog: Growing successfully as a startup - insights and tips

As a consultant, I focus on guiding entrepreneurs through national and international financing opportunities. I regularly use valuable data from surveys in my advice. Recent research revealed that 95% of startups get stuck in their growth due to skipping crucial milestones and inconsistent growth. Read along to see what else I notice in my conversations.

The first step to understanding your customer

Many startups begin with an innovative idea but do not know whether there is actual demand for it. You often see startups, especially those from technical universities, very excited about their technology but have no idea who the market is and whether there are customers. That's why beginning customer research early on is so important. Finding your first customers and understanding what problem you are solving for them is the first real milestone. We call this the problem-solution fit. Startups that invest time in this lay a solid foundation for sustainable growth.

From problem to product-market fit

Once the problem to be solved is clear, the next challenge is developing a product that customers will use. A product is only successful if customers buy, use, rebuy, and recommend it. That is why I recommend continuing to have conversations with customers, actively collecting feedback, and continuing to develop. Also, ask your customers if they would recommend your solution to others. If they do, you are on the right track. Customer retention and ambassadorship are essential indicators of a strong product-market fit.

Avoiding common pitfalls

What are common mistakes startups make? I see these recurring:

• Investing in marketing and sales too early. Without a proven product-market fit, investments in marketing can be a waste of money.
• Insufficient customer interviews. Making assumptions about what customers want often leads to wrong choices. It is a waste if you develop something for which there are no customers.
• Focus on capital rather than customer value. After all, raising capital does not guarantee success.
• Insufficient focus due to many identified customer segments with inadequate attention to the Decision-making Unit. Focus primarily on customers with the same buying motive.

Sustainable growth starts with the proper foundation

Take the time to understand who your customer is and what problem you are solving. It may take longer initially, but you will have a much better foundation. You will easily win that time back as your business grows. And my golden tip? Take training in cold acquisition and interview techniques, even before you start developing the product or service. Many startups find it difficult to start their first customer conversations. If you don't know how to get in with the right people, selling your product won't be easy in a later stage.