Why engaging startups are successful startups
4 minutes read
There are more startups than ever and more startup failures than ever. Ninety percent of startup businesses fail to trade for more than five years, begging the question: Why? There are a few reasons from failing to fill a market need, running out of cash or installing the wrong team.
However, successful startups which do make it past five years and beyond all share one common element: engagement. Engaging and entertaining products garner user interest - and it is consistent usability which creates a solid foundation for any up-and-coming startup. Let’s explore why startups which engage with users and backers are the most likely to find success in any given niche.
Irreplaceable to users
Startups need users to buy into what they are offering. There is no viable business without a viable market. However, “buying in” means more than financial backing - it means regular use of any given service and product. This is easier said than done.
One popular way to achieve this is mobile engagement. Modern startups are more often turning to apps which engage, entertain and gamify to achieve regular use. This makes sense as more and more of the world own smartphones.
Almost 3 billion people will be using smartphones from 2020. Engaging with users via mobile technology, therefore, helps to solve some of the biggest causes of startup failure. Case in point: customer experience. Ordering food or finding other direct services make apps feel indispensable to modern users. Integrating an engaging user interface works to build brand loyalty and customer retention.
Or consider that many startups fail because there is no direct channel for marketing. An app circumvents this issue. Consider that Americans check their phones about 80 times a day on average. Linking startup to engaging app presents a direct way to communicate with users.
Attractive to funders, mentors
Taken from another angle, startups who engage with mentors and business figures are also likely to find success. Strong mentors are core to a successful startup, and keeping those business management figures engaged is integral to long-term growth.
The first line of defence against the dumbest, most avoidable mistakes, are mentors who have made those mistakes themselves. Business mentors have already done and seen it all. They understand which mistakes not to make. Maintaining strong two-way communication with outside perspective makes sure that decisions are not insular.
Further, industry experts believe that those who engage with mentors most, get the most productive work done. Those who engage least, are generally the most likely to waste precious time.
Clearly, startups which engage are startups which succeed. This is because more customers equate to more data points, with more engagement offering a better understanding of users. Engagement must be viewed as both internal and external, with users and business mentors, for consistent startup growth. Founders with this mentality to engage are the most likely to succeed.