Is The Business Startup Market Too Saturated For Success?
The short answer is — yes, no, maybe. Actually, there isn’t a short answer. For many analysts, experts and entrepreneurs a saturated market is a good one. It’s the right place to go forth and create a new business startup, disrupting the status quo and bringing something new to the proverbial table.
Big Bang Disruption
Books have been written about it, leaders have trembled at its feet and articles on its impact abound — Big Bang Disruption, that all-powerful force which comes in and tears a market apart. Think on the navigation market where old hats Garmin and TomTom battle to find feet against free (and better) apps on smartphones. These brilliant disruptors and innovators didn’t stop and quaver at the word saturation, they destroyed it.
One of those ideas could be yours.
Entrepreneurs Don’t Give Up Yet!
So no, the fact that large swathes of the business startup market are saturated doesn’t mean that the entrepreneur should now shuffle off shamefaced. Yes, the market is occupied by others, especially within the technology sector, but a good idea done well may not necessarily be absorbed into the giant sponge and left floating along with the rest. Remember the simplicity of Twitter redefining an entire social media construct, the ridiculously easy access of Uber transforming taxi-based transportation, and Google Maps giving the world out to anyone, for free.
According to a recent insight piece by Inc. there are three things any startup should do in order to succeed in a saturated space: challenge the status quo, find an underserved audience, and identify profitable distribution channels. It is also important to pay attention to the trends which are circulating the market and listen to the economy.
Some of the biggest trends currently impacting the business startup market have evolved considerably over the past few years. In 2015, the world recognized the value in that brilliant disruptor or market changing idea, but also continued to flail in economic waters which affected entrepreneurial spirit. The National Bureau of Economic Research found that high-growth startups in the US were starting to decline, and this sobering statistic has long-term implications for job creation in the country. However, on the flip side, venture capital spend rose to a staggering $US58.8 billion in the US in 2015 according to the MoneyTree report by PwC.
The business startup also faces tight costs and budgets for most of its formative years regardless of levels of investment, and this has its own set of challenges. It has also seen disruptor startups shake up how employment, financing and customer engagement are handled by, well, other startups and big-league business. Freelance sites which give startups access to talented people without the high salary price tags have changed enough to almost lose their dodgy roots, and solutions like Kickstarter give people with big ideas access to money from other parties who have an interest in being part of something fresh and exciting.
While there may be a rapid rush on the last perceived available spaces in the business startup market, remember that this is really just that — perception. There are so many examples of markets torn to shreds or changed beyond recognition thanks to one brilliant idea that perhaps the concept of a saturated market is an outdated one? Either way, now is not the time to give up, but rather to step up and be inspired.
Originally published at blog.100tb.com.