Ever since small and medium tech-oriented companies started to appear a few years ago, the startup business model has been the way most new ventures are established. With more startups now keeping the market saturated, we’re seeing some very fierce competition.
The market is expanding and we’re seeing healthy growth from the economy, but there are more startups today than there were when the trend started, which means your startup needs to be extra competitive to have the edge.
As we get closer to 2017, experts are anticipating another shift in trends among startups and new ventures. What are the top startup trends we should anticipate for 2017?
No More Burning Through Capital
Gone are the days of choosing a fancy office near the city center and going for a brand new Tesla P100D as a company car. This type of spending is what made a lot of startups fail in recent years. The newer breed of businesses and business owners are focusing on staying lean and efficient; this is a shift in the right direction.
A lot of business experts like Sam Ovens predicted this shift early. We’re seeing startups with extremely low expenses and overhead costs. Efficiencies are being made throughout all sectors and startups are pushing hard to limit their expenses in order to be better than their competitors. Lower overhead costs give these new businesses the ability to be more aggressive with pricing.
IoT and Smart Homes
Startups are no longer focusing on apps and services. There are plenty of new businesses based around building hardware and gadgets. Interestingly, these businesses are taking the same approach of app development and implementing that approach in product design and development.
Every new product is designed to answer a question or provide a solution. It doesn’t have to be a big problem or an important question either. A product can offer convenience and still be popular on the market.
The two product categories that will be big in 2017 are Internet of Things and Smart Home Appliances. These two categories are very close to each other, but while IoT includes all gadgets and focuses on the idea of interconnecting them, smart home appliances are designed to make a home, well, smarter.
There are some interesting new products being released in 2017. Vue’s new glasses are gaining a lot of traction on Kickstarter. The smart glasses work well with both Google Assistant and Siri, which make them even more interesting.
Crowdfunding and Crowdsourcing
Both crowdfunding and crowdsourcing are going to continue being popular in 2017. Startups are no longer aiming for extravagant valuation and a lot of investors. The focus of new businesses in 2017 should be the products and the stories behind them, which makes both crowdfunding and crowdsourcing the best approaches to take.
Through crowdfunding, a new business can bring their concept to life with the support of their customers. It is very similar to promoting a pre-order product, but instead of taking a lot of risks with the production, the company can get more support and take a safer route.
Crowdsourcing, on the other hand, enables startups to let customers – or potential customers – be involved in the development of a product. The design, programming and even the manufacturing process can be crowdsourced. The industry is much more prepared for global, multi-party collaboration, which has led to crowdsourcing being as powerful as it is today.
Ready for the Changes?
To succeed in today’s – and 2017’s – competitive market, your business must be able to keep up with new trends. While these three only offer small glimpses of what to expect in 2017, they should give a pretty good overview of how exciting the market will be. Are you ready for these new trends?