Building successful software is an impressive feat, especially since 21.5% of startups across all industries fail in their first year in business, while 30% don’t make it past their second. Creating a well-designed product that appeals to users takes a lot of work, not to mention a bit of strategy and luck.
But perhaps even more difficult than getting that initial hit is knowing what to do next.
After all, 50% of startups fail in their fifth year. This number increases to 70% by year 10. Achieving longevity, it seems, is not as simple as creating a successful software product. You also need to be able to navigate where to go from there.
Determine your next big move
A prosperous future for your business can be very different from that of other software companies. After all, there is no single formula for a company’s next steps.
To evolve successfullyyou cannot simply rely on a broad understanding of market developments.
You also need to determine what your customers’ specific needs are and which of those needs are unmet and match your organization’s core expertise.
Of course, having this information is only part of the process. You must be able to act on these ideas. So if you’re running a software business (or really any business) that has a great product but is struggling to figure out the next stage in the life of the business, here are some strategies that will get you on the right track. way :
1. Leave no stone unturned.
Trying to accurately identify the next big thing in your industry requires extensive and continuous research, using all available avenues. In software, these avenues are your customers, your industry, your employees, and the larger trends associated with current events. Bring in data from each of these sources and analyze it to see where things are going and where there are gaps you could fill.
Take SaaS, for example. Thanks in part to the impacts of the pandemic, the SaaS market is expected to reach $716.52 billion by 2028. Is there a niche you can fit into in this growing industry? If so, try filling it out. My company, for example, is taking a proactive and innovative approach to SaaS in the oil and gas industry. Historically, industry software was not service-based, which is why we have focused on this aspect of our product over the past few years.
2. Improve your business communication.
While you may be happy with your organization’s current communication methods, you can probably find ways to streamline communication between leaders and employees or facilitate more open discussions across different channels.
Google likens communication to data flow: if data doesn’t reach all interested parties, it won’t be as effective as possible. You will need Site Reliability Management (SRE).
Bring together teams that don’t normally communicate to see where they can help each other, testing different methods of communication in the process. If you are not already, adopt an agile methodology not only for software development, but also for improving communication. Once you start digging, you’ll find ways to improve the way your organization communicates. This, in turn, leads to the sharing of new ideas and concerns that would otherwise have been overlooked and can move your business forward.
3. Prioritize longevity over growth.
In Japan, many companies have been in business for over 100 years. One of the ingredients of their long-term success is their focus on continued growth. Although these companies are very different from modern software companies, the underlying lesson should not be ignored.
And while there’s no doubt that growth is a crucial part of a successful software business, it shouldn’t be seen as the sole determining factor in your future actions.
Focusing on growth above all else can backfire, leading to burnout and poor decisions within your organization. There’s a reason 70% of all acquisitions fail: when leaders feel pressured to grow for growth’s sake, their focus on results (no matter the cost) isn’t sustainable in the long run. Instead, focus on how you can continue to serve your customers better. This will put you on a path to healthy growth, rather than a path where your company’s eyes are too big for its stomach.
4. Make the future part of your mission statement.
Your company’s mission statement is more than a few good-sounding words, it represents the beating heart of your organization and its vision. In addition, mission statements have a direct impact on the actions of employees. If your statement only reflects past accomplishments, you’re not giving your employees where to go or something to aim for.
As such, your mission statement should reflect where your business is today and where it plans to be in the future.
This will help keep management’s eyes on target and give your employees a renewed sense of purpose. This goal will make your employees 30% more likely to perform better and 54% more likely to stay with your company for more than five years.
To look forward
As difficult as getting that first hit, it might seem like a smooth ride when it comes to figuring out what to do next.
However, by doing thorough research and keeping in mind what’s really important to your core business, it’s possible to point you in the right direction for success for years to come – and ensure you don’t get lost. along the way.
Image Credit: by Mikhail Nilov; pexels; Thanks!
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