Funding, infrastructure, an efficient team and government policies are decisive factors for a business, but these are secondary. According to a study, the majority encounter setbacks because of inadequate demand in the market.
For the sustainable growth of a business, its offerings must have a market replete with active/potential consumers. Moreover, investors take interest in startups that offer products/services according to the needs and expectations of the market—it should work towards the betterment of consumers and society at large. Hence, startups whose sole objective is to add value to the lives of people and society are most eligible to foray in the market and grow. The decision of a consumer is usually influenced by what good the company is doing overall. For instance, there is a company that makes bags from recycled clothes of firefighters and gives back 10% of the profit earned to the families of the firemen, dedicating an entire business model around one specific niche. Because of this concept of helping others and making a change, these businesses can get huge revenues from their products as they have better connect with consumers on humanitarian grounds.
Once a startup convinces its target audience that its products/services are specially designed to meet their demands, the next target is differentiating itself from its competitors. Both aspects are inescapable and an entrepreneur must pay concerted attention to them.
Risers Accelerator helps startups that give back to society. Their founders should not only aim to generate revenue but also be passionate about adding value to society with viable offerings. Recently, we funded ₹1 crore to a startup that provides organic handmade skincare products and exports them to 35 countries, besides ensuring its reach across India.
[“source=livemint”]
