New start-up businesses are a constant feature of the business landscape. There will always be entrepreneurs willing to go it alone and launch their own business, in order to find greater independence job satisfaction, increase personal wealth and build a more secure longer term future.But starting a business isn't just of benefit to entrepreneurs. Start ups also represent a valuable market segment for suppliers of an extremely wide range of goods and services. Start ups can be easier and therefore more profitable to sell to, more loyal in the longer term, and spend more on their initial orders.
Far from being overlooked, there are a number of significant reasons why you should be looking to target start up businesses as part of your B2B sales and marketing strategy:
Start ups have a wide range of needs
When a new business starts up it usually needs to source practically everything from scratch. Their needs are wide ranging including everything from recruitment and financial advice to office furniture, IT, marketing and printing. Often their initial purchases in these areas are likely to be far greater than when the businesses are more established and mature.
Start ups are a growing market, even in a recession
Despite recent economic uncertainties, the rates at which new businesses are started seem to be unaffected. In fact new business start up rates seem impervious to economic woes and even go up in troubled times. This can be because people lose their jobs and look to self employment for a new career, or partners who haven't worked start their own business to bring additional income into the household. So start up businesses can represent one of the few vibrant and growing sectors of the economy.
Start ups are ready to buy now
New businesses are in a position to make buying decisions far faster, because they need to get trading as quickly possible. This can make your sales effort far easier, making your sales more profitable. It's also easier to get a foot in the door as start ups are more receptive than mature businesses which may have a well established supplier base.
Start ups can help you increase market share
Getting your products or services sold into businesses when they first start up can really help you steal a march on your competitors. In fact if you act quickly you can become supplier to a new business before your competitors even know they exist. If you operate in a specific industry sector, new entrants are often the lifeblood of that sector, and exploiting them can help you increase your market share
Start ups make loyal long term customers
New business owners often need a little extra help, guidance and advice from their suppliers. If you can provide this support alongside your products or services, you'll build potential long term customers for your business who are far less likely to defect to your competitors.
In summary, if your company is looking to source new customers - as most businesses always are - then you should make sure that you include targeting new business start ups from your local area, region or industry vertical as part of your sales and marketing strategy.
