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After a few years of economic uncertainty, 2024 promises to be a promising time for startups to take off. While software may see a particular resurgence due to expected market growth, every industry has opportunities for new concepts and innovative companies. This is beneficial for founders entering the tech industry. However, technology is not the only sector ripe for new companies, ideas and concepts.
Take e-commerce, for example. According to Insider Intelligence, it is expected to be a booming industry as sales will rise to $1.72 trillion within three years. Renewable energy is another promising sector to explore, with the World Economic Forum noting that green solutions are expected to account for 35% of global energy by next year.
In other words, it’s a good time to consider launching a business or product. However, resilience remains crucial for all entrepreneurs venturing into the startup space. Even in the best of times, starting a business can be risky. Flexibility and adaptability are essential for success, regardless of the economic climate.
How can you make sure you’re ready to change direction at a moment’s notice? Implement some proven strategies to keep your growing business agile.
Related: The basics of building a budget for your business
1. Design your annual budget allocations to account for uncertainty
What are some reasons why startups fail? According to CBInsights, 38% of failed startups cited lack of liquidity as their primary issue. That’s almost 4 in 10, which is a compelling reason to make sure you spend plenty of time adjusting your funding allocations.
First of all, make sure you set aside emergency dollars. Having some spare cash could save you from trouble if a seller suddenly raises prices or you can’t keep up with payroll. This goes beyond simply being efficient with cash flow; it’s setting aside a slush fund, so you’re not struggling to cover basic bills.
Next, invest in your profit centers. These will naturally include the sales, marketing and support departments. Many founders have made the mistake of trying to reduce sales and advertising budgets. This is a good way to lose a lot of leads and make it difficult for your business to generate revenue. You can (and should) continue to operate with a lean, basic mindset. Don’t be frugal in small matters and don’t be wasteful in larger ones, especially if you have set aside emergency funds.
2. Be alert for opportunities to expand your influence
You need a solid business plan to establish a supportive and visionary framework for your company. That’s great, but stay open to opportunities that may not align with your current plan. You don’t have to take every opportunity to grow, but stay alert to the possibilities.
For example, let’s say you have developed a product and your business is in the United States. However, your sales team provides you with some interesting findings: They are receiving a lot of interest from buyers in overseas markets. This may indicate that you are focusing on increasing international sales. In 2021, INS Global found that 42% of companies believe moving outside of home markets is a popular way to diversify.
The point? Staying up to date on trends is essential for making real-time decisions. Nothing should be set in stone, from marketing to reaching a new demographic to changing internal processes. If you are too rigid, you will not experience the benefits that come from being able to adapt.
Related: 10 tech trends that will shape the next decade
3. Differentiate your company through exceptional customer service
Every company has competitors. Some of your competitors may offer products or services that are almost identical to those of your startup. However, you can still win customers with innovative customer service solutions.
This is how Zappos became a leader. The company’s support team deserves personalized awards for its innovative approach to engaging customers in need of assistance. A great example of their unique strategy is how Zappos has focused on communicating with customers who call during the pandemic. Instead of following the same old approach, Zappos empowered its reps to engage in authentic conversations about anything and stay on the phone for as long as necessary.
How can you revitalize your service and revolutionize your industry to attract more fans? A good place to start is by looking at what other companies are (and aren’t) doing. As you identify gaps, consider ways to address them. Next, try some of your own creative solutions. Not all ideas will work, but some will probably be successful. Add them to your service offerings and watch your competition struggle to keep up.
There is no reason to hesitate to pursue entrepreneurship in 2024. Yes, the last year has been challenging. That doesn’t mean you can’t succeed as an entrepreneur. You just need to implement measures to allow your organization to adapt and change as the months pass and the money flows in.
Related: 4 Ways to Provide Excellent Customer Service