Scrappy startups have a unique mindset that is more focused on the result, money saved, and actionable items that make an impact. Let’s take a closer look at what it means to have a scrappy mindset and how it can help you build your business.
- Introduction
- What is a Scrappy Mindset?
- How to build your startup with a scrappy mindset?
- Conclusion
Introduction
Startup culture has been thriving since the early days of the internet. There are now more startups than ever before and for a good reason. Starting a company can be incredibly rewarding, and there’s no better time to do it than right now. However, building a successful startup is hard work, and it takes motivation, determination, and a scrappy mindset to help your startup thrive.
You need to have a fantastic product, excellent marketing skills, and the endurance to weather tough times. In this blog post, we’ll steer you in the right direction when starting your business with a scrappy mindset.
What is a Scrappy Mindset?
The scrappy mindset is a way of thinking characterized by resourcefulness, determination, and resilience. Individuals who have a scrappy perspective can overcome obstacles and persist in the face of challenges. They are not afraid to take risks, and they are always looking for ways to improve their situation.
People with a scrappy mindset view obstacles as opportunities to learn and grow rather than setbacks. They are determined to find a way to succeed no matter the odds and are constantly prepared to take on new challenges, which is one of the biggest reasons people recommend starting a business with a scrappy mindset.
How to build your startup with a scrappy mindset?
Building a startup with a scrappy mindset means being creative and resourceful with the little you have.
Airbnb is a perfect example of the successful outcome of a scrappy mindset. Brian Chesky and Joe Gebbia concocted this superb idea of providing homestays and lodgings in properties across the globe and not one of them is owned by the company! This is the scrappy mindset at its best!
Thus, a scrappy mindset means not being afraid to get your hands dirty and doing whatever it takes to get your business off the ground. It also means being flexible and willing to change course when necessary. Most importantly, it implies, never giving up.
Here are a few steps to start your business with a scrappy mindset:
- Write Down Your Thoughts
The first step in launching a startup is to document your thoughts and ideas. Writing down your thoughts involves thinking about your business idea and how you plan to make it a reality. It’s essential to be organized and have a clear vision for your startup to make the most of your limited resources. Having a solid plan will also help you secure funding and attract talented employees.
It’s essential to be realistic and honest with yourself to create a real plan that has a good chance of success.
- Validate your idea
Validate your idea by seeking the opinion of others (preferably experts) before launching it. You want to make sure that you build something that people will be interested in paying for. Do as much research as possible with focus groups, surveys, and polls to gather information on how potential users and customers feel about your idea.
This data will help you determine if there is a need for your product or service in the market. And in turn, increase your chances of success when building a startup.
- Set Realistic Expectations
Don’t expect your startup or business to be perfect if you want to start a business with a scrappy mindset. There will be stumbling blocks along the way, but don’t let them stop you. You must learn from your past failures and your startup’s experience and keep moving forward with a scrappy mindset.
For instance, if you want to establish a business, you should set realistic goals on how much money or profit your company will generate in the first year. Do not merely compare other businesses in your field to set your expectations. Consider exclusive factors like the scale of your venture, level of investment, number of employees, etc.
- Select a great Team
A few entrepreneurial principles must be followed when it comes to starting a business, and one of them is to assemble a brilliant team. They’ll be in charge of carrying out your vision and assisting you to take your firm to the next level.
A successful team must have complementary skill sets and operate well together, and they must also, be enthusiastic about your business and its mission.
- Be Passionate about your Startup Journey
Passion is vital when it comes to building your startup. The journey is long and arduous, and without passion, it’s easy to give up. To make it through the tough times, you need to be excited about your startup and what you’re doing. Writing about your experiences and brainstorming what you’ve learned can help keep you and your team motivated.
- Be a leader, not a boss.
You’ll need some fantastic employees if you want to build a startup with a scrappy mindset. It would be best if you were a leader rather than a boss. The primary difference between these two methods is that a boss expects their staff to obey every command, but a leader motivates them.
As a leader, you must accept responsibility for the success or failure of your team rather than blaming them when things go wrong. Being a leader increases the likelihood that they will work hard consistently to meet your objectives.
- Conquer the Fear of Failure
One of the biggest challenges you’ll face as an entrepreneur is overcoming the fear of failure. Failure is a part of the startup process. Many entrepreneurs are intimidated by the idea of starting their businesses because they fear failure.
But if you have a clear vision and passion for your idea, you can make it work. It would help if, in addition, you are willing to put in the hard work and take risks to succeed.
- Be Money Smart and get Creative with Funds.
The phrase “be money smart and get creative with funds” implies – that to start a business and be financially savvy, it’s essential to be smart about how you use the available money and find ways to fund your business. Being money savvy could mean looking for grants or scholarships to help pay startup costs for your company.
For example, investigating grant opportunities or using crowd-sourcing platforms could be effective options for procuring funds. Furthermore, conducting research into possible financing sources and networking with people who may be able to assist might be beneficial.
- Work on product and Customer base
A strong product will ensure that customers are satisfied, while a solid customer base will help to spread the word about the business. Companies must develop a good product and marketing strategy to create a strong product and customer base.
Additionally, firms must strive to establish consumer relationships. Networking, consistent and efficient feedback loops, real-time improvements based on customer inputs, etc. are ways to build that relationship.
- Establish a marketing strategy
You must design a marketing plan while starting a business. Good marketing will entail determining who your target market is and what their requirements and desires are.
You’ll also need to figure out how to reach out to these consumers, whether by advertising, word-of-mouth, or other means. To differentiate yourself from the competition, you must be innovative and think outside the box while establishing your marketing approach.
Once you know your target market, you can better determine what marketing channels will most effectively reach them. For example, traditional marketing channels such as television, radio, and print advertising can be expensive and may not match your target audience. While leveraging social media platforms for the same may well, be cost-saving!
- Learn your competitors
No business can be successful without knowing its competition. You have to know:
- what your competitors are doing,
- what services or products they offer,
- how much they charge for them,
- and how well they perform in the market.
You also have to research your potential customers and understand their needs. If you can figure out what they’re doing, you can develop strategies to entice them away from your competitors and intrigue them with your offerings.
It’s critical to be realistic about your strengths and weaknesses. Do not try to compete with businesses that are clearly out of your league. Focus on what you do well and find ways to differentiate yourself from the competition.
- Challenges are Inevitable
When embarking on any new venture, there will always be challenges. The key is to anticipate them and have a strategy to deal with them. A scrappy mindset is building immunity to unpredictable challenges by assuming they will find their way into your startup journey.
How? By being comfortable with uncertainties (Yes! You read that right!) and acting decisively. Act and react with agility to overcome challenges.
- Prepare to Change
Building a startup with a scrappy mindset is all about being prepared for change. This means being flexible and not getting overly attached to any specific plan or idea. You must be able to roll with the punches and make the most of every opportunity that comes your way. This mindset will help you build your startup in a chaotic environment and set you up for success.
For example, the slightest changes to the environment or demand can lead to significant changes in everything related to business. You have to be flexible enough in the initial days to come up with changes in a time-bound manner and remain on track.
- Identify the trends
A startup must be able to identify and capitalize on trends, to improve its chances of success. However, you must note, that not all trends will be successful. Hence, you must also research whether a trend is worth investing in.
Additionally, staying up-to-date on trends can help businesses remain competitive and responsive to changes in the marketplace.
- Eliminate the Possibility of Copycats
Copycats are always a concern for startup founders, as they can easily replicate a successful business model and hijack your market share. There is always the possibility that a competitor will copy your product, which makes this, especially an issue for the big tech companies.
It’s critical to have a difficult-to-copy company moat to differentiate your startup and make it successful. Your business will stand out from the competition and help you attract customers and investors.
For example, Google started its moat by developing a better algorithm for indexing and searching the internet and grew into the global enterprise that it is today; leaving behind early competitors like WebCrawler, Lycos, Yahoo, and a few more.
Conclusion
Startup founders must be able to constantly improve, innovate, and pivot their strategy to launch their business with a scrappy mindset. The business model must incorporate the evolving technology and customers’ demands.
Being an entrepreneur means embracing a scrappy mindset that encompasses strategic thinking, intelligent use of available resources, quick decisions, fast learning and unlearning, real-time improvements, readiness to change directions as situations demand, and a never-say-never attitude.
Do you have it in you? If yes, your scrappy mindset will help you and your startup thrive irrespective of the volatile market environment.