Written by : Rajiv Singh

A Chartered Accountant in UK with 15+ years of experience in FinTech Consulting, Accounting & International Taxation. I enjoy being a Social, Foodie and Father of two young children, reachable at linktr.ee/RajivSingh.

How Can Small Startup Businesses in India Tackle Competition in 2021?

Rajiv Singh
Rajiv Singh, CA, FAIA

Jun 8, 2021 02:27

In today's day and age of modernization, many bright-minded citizens across the country are on the move, constantly thinking of new ideas and how to carve a successful business out of such innovative ideas. India indeed is one of the top countries for any startup business to thrive. However, it also has a cut-throat competition which one needs to manage with patience and determination. As per reports, about 19 percent of startups fall out of the race due to their inability to handle the market competition.

Combating competition is part and parcel of operating any business. As much as it might seem like a long shot for a startup to grow in a competitive environment, it is definitely not impossible! Competition exists everywhere, be it in classrooms, workplaces, and even in business environments. Instead of evading the rivalry, a startup should use such competition to go the extra mile. It would be best if you made it a catalyst to work on your business innovation, creativity, and strategy making.

Coming up with a startup idea is one task, and the actual implementation of this idea is another task, both of these go hand in hand. In the dynamic cut-throat Indian market, a business needs to put forth a product or a service that raises the bar for expectations compared to its competitors. There is a ton of untapped potential in the Indian market that is yet to be identified, but with ample research done and the right vision, a startup can surely sweep the board if they target the right audience.

Although setting up a startup company can be overwhelming and exhausting, there is always room for suggestions and guidance from other sources. Doing so will give the company a head start and help one learn the ropes of the relevant industry.

If you decide to start up a new business and are eager to make headway and get it off the ground, then our team at Gotaxfile has got you covered! Our main goal is to empower entrepreneurs so that they get the encouragement to fulfill their desired goals with the guidance of our expert team of mentors who are more than ready to help you out!

Given below are a few effective tips that you must keep in mind that can help you while setting up your startup:

* Focus on the problems faced by society currently

One of the most first and foremost steps while setting up a business is to think about the end result it can provide to the consumers. In our current day-to-day work life, consumers require products and services that make their lives easier and provide instant gratification. Keeping this in mind is a crucial factor as this can help a business build on its strategy, which makes the brand more endearing and can provide consumers with a seamless experience.

In a nutshell, the one characteristic big companies like Ola, OYO, and Zomato have in common is that they make consumers' lives easier. A major part of their lives is made easier by using the services these companies provide, which is the reason behind their success.

* Employing a good and small scale workforce

As a startup, it would be off the wall to initiate after employing a large workforce. It is essential to build a team of strong and passionate professionals who understand its vision and mission. By doing so, ideas and solutions can be generated, which leads to faster and fruitful results.

* Keep your employees close and your competitors closer! (Coopetition)

The first thought that pops up in one's mind when they read this line is that it is completely absurd! If you consider the 2021 scenario, this strategy is a definite way to capitalize on the market. The question is, how can this be done? Due to the ongoing COVID-19 pandemic, business is encouraged to collaborate to sustain in the market. This process is carried out by sharing information, expertise, and data so that both parties yield high performance and profits. However, there is a downside to this. Since every startup strives to be the best, an untrustworthy competitor might dwell in fraudulent practices and might lead to loss of intellectual property, diluted strategies, and imitation of one's ideas. Therefore, if a startup plans to follow the "Coopetition" strategy, they should be aware of the partnering startup's worthiness and authenticity.

* Keep regular track of your finances.

A major chunk of business activity is connected to dealing with numbers. More often than not, many startups find themselves stuck in a loop of debt if they do not manage their money well, and this eventually leads to the downfall of a business! It is essential to be aware of your market position, estimate future costs and the pricing strategy for targeting end consumers. Knowing such details will give your startup an upper hand in being more successful.

* Pay attention to the current business scenario.

Considering the situation in the year 2021, one must have a carefully thought-out plan to venture out in the market as a startup. Due to the COVID-19 outbreak, many existing businesses have been disastrously affected, leading to major losses. According to the survey about the future of startups in India due to COVID-19, most respondents thought they would have to shut down their business in the coming months.

Since a significant number of countries have COVID-19 restrictions in effect, an entrepreneur should consider tapping the internet platform. One can think about setting up a business that consumers can access even from their homes' comfort with utmost ease. Due to this, many e-commerce and Artificial Intelligence platforms are in demand since it is surely the need of the hour in such a time period.

* Get on your Socials!

In the present world, social media can be a major boon for any startup about gaining popularity. Having a good online presence is essential to reach out to potential consumers. When consumers are aware of the benefits your startup provides, you can be assured that this will lead to increased profits since word of mouth is a very impactful tool through which a business can achieve a good reputation. Prospective customers can also get a gist of what your startup actually provides.

Gotaxfile – A dependable support for budding entrepreneurs!

Even though it is easier said than done, setting up a startup is generally associated with many procedures and formalities. These tend to be quite overwhelming for a budding entrepreneur, and that is when Gotaxfile comes into the picture! At Gotaxfile, we aim to help startups get a kick start in their business endeavors so that one's experience is hassle-free. We provide you with various cost-effective options, and good quality is a definite feature!

Reach out to us for all your startup-related queries, and we will be more than happy to guide you through your journey of owning a successful business!

Rajiv Singh
Rajiv Singh, CA, FAIA

Jun 8, 2021 02:27

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