Startup founders have a dizzying array of choices that will define their strategy, and financial trajectory. A couple of general categories cover a wide range of viable paths towards creating a healthy business.
Seize Opportunities
One strategy is to zero in on an existing market, and capitalize on opportunities that aren’t being addressed by other services. Deep market understanding and execution are key areas that foster this form of startup growth. This business structure is commonly founded on top of existing platforms, as the goal is not to create but to capture. The capture philosophy takes advantage of previous market creation, and leverages the overall sector growth to feed the startup.
Build New Markets
Another strategy for a bold startup is to create an entirely novel market. The risks are greater (unknown demand), but the rewards of creating and leading a new market are compelling. The new market strategy may be a realignment of an existing unfeasible product or service, or it may be a completely new technology or invention. These types of startups are platform builders. The platform benefits greatly by inspiring outside users and developers to utilize it. Generally a share of the revenue is split between platform creator and each service built on it. Lower costs and rich functionality prompt more rapid adoption and growth. This translates into spectacular opportunities for the platform startup.
The million dollar question, is your startup a capture effort, a platform building tool, or a mix of both? Make sure to focus on the areas that have the best fit (profit/growth) for your master plan and legendary startup. At Victus Media we’re leveraging existing social data, and utilities to compliment social search, but we’re working to enable a new market of adaptive web applications that will use our database.
