Many technology companies fail to grow. Why is that so?
As an entrepreneur, you might have a variety of ideas for a purposeful new product; seeming like nothing can back you down from the challenge and developing it into a success. The reality, however, proposes a harsh picture of traps compared to immediate success.
The basic market concept is that any technological business-newbie has the potential to make it big in no time, with a captivating idea. While this is true in most cases, technology companies usually fail to see the possibility of growth stagnation that can occur due to drawbacks in the company’s organizational structure.
Let’s have a look at few of the reasons that we call ‘drawbacks’.
- Peripheral and Narrow Market Research
New to the tech business industry, entrepreneurs look for inspiration from well-established IT founders to identify the need and solution for their concepts. No matter how unconventional the idea may seem, the viability of it relies on extensive research; both qualitative and quantitative. Unintentional bias and assumptions can affect the data and hence, the outcome.
Lack of detailed or peripheral market research can possibly lead to data being ignored or manipulated according to the needs of a well-known executive’s life experience. This damages the company’s potential growth to success.
- Unauthenticity of Ideas
Growth tends to destabilize due to unoriginality. If you’re not authentic with your ideas, you are bound to fail in the technology business. There are many competitors in the same niche working their way up the tech ladder; each step representing a futuristic concept. Companies like doing business with new products and not a copy of what has already been established.
In order to build a trustworthy and long-lasting relationship with tech partners, put yourself out on the market and determine what makes your product different and why it represents your company.
- Lack of Attention Towards Customer Service
One of the biggest problems that tech companies are facing nowadays is, despite knowing much about technology, employees are unaware of the importance of customer service. It is the job of the company to help their customers deal with the transactions they make – without having the customer read the programming manual first to access the services.
It is important especially for technology businesses to provide the high-end customers support. This This can easily be done by hiring fresh graduates in the field of engineering and equip them with your company and product information.
- Channel Mismanagement and Ineffectiveness
The distribution and marketing channels of a tech company is another reason for growth stagnation. A new product is likely to fail if marketing channels are mismanaged. Ineffective promotional strategies will lead to unrecognizability of the product and hence, will affect company value and tranquilize profit maximization.
Implementation of lean start-up methodology (learn, build, measure, repeat) within the marketing department will not only make them feel motivated but also allow them to optimize their efforts and get maximum outcome.
- An Unbalanced Core Team
Lack of a balanced core work team is another drawback of technology companies; leading to failure of growth. In order to operate a tech firm, you are not only supposed to hire people who are aware of the newest advancements, but can use tech-jargons in file reports. They should also be passionate about technology and believe in continuous learning. For a company majoring in IT, you need sales, engineering, marketing and individuals from other disciplines to help with the job. An unbalanced core team can knock down a potentially booming industry.
There is no doubt that success takes time and considerable amount of individual effort. With the current boom in technology and business industry, companies might want to re-engineer their work to meet market expectations. Its important for businesses and startups to have right growth plan alongside an ideal team who can execute the plan successfully and take company’s growth to the next level.