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Over the past three or four years, startups and small businesses have confronted unique challenges like the lingering effects of the pandemic, fluctuating inflation rates and global supply chain disruptions. Surviving, much less thriving, has required herculean effort and resilience. As we head into the last quarter of the year, what insights can we gain from the successes of small businesses in 2024?
Growing from a startup to a successful and sustainable business demands years of dedication — a truth I can wholeheartedly attest to as I look toward 20 years of entrepreneurship. The average startup's growth rate plummets from an impressive 268% in year one to 71% by year three, so what should we anticipate for year five? Year 10? You don't necessarily need to go across state lines, chase outside investments or go public to achieve regular and repeated growth as a startup. Here are four important lessons I've learned from leading a company that continues to thrive and be recognized for its growth after 17 years in business.
Related: 4 Growth Hacks That Helped My Startup Increase Revenue and Profitability
1. Let your customers be your business compass
Your customers are the foundation of your success. What's best for your customer is best for your business, and what benefits your customer will ultimately benefit your business. Every decision and move you make should reflect their needs, wants and pain points. When you truly listen to your customers so they feel heard and supported, you can shape your products, services and overall business model to consistently deliver value. Couple this with a steadfast commitment to exceptional customer service and you'll see lasting loyalty and create customers for life.
It wasn't easy, but from the early stages, I committed to growing my company 100% organically without taking on debt or outside investments. This might seem like an ambitious goal, but I promise there are ways you can achieve it, too. While outside investments can certainly accelerate growth, they don't come without tradeoffs.
Accepting funding often means answering your investor's demands and shifting focus away from your customers. Investors might prioritize short-term gains and scalability, reacting to market trends instead of thoughtfully and intentionally innovating in the ways that matter most to your customers. A customer-driven strategy will boost loyalty and your competitive advantage, fueling organic growth and leading to a more resilient business model.
2. Embrace automation, but preserve human connection
Automation can revolutionize your business by increasing efficiency, reducing operational costs and allowing you to scale faster. Time is one of your most valuable resources as a startup founder, and streamlining routine day-to-day tasks with technology frees you up to focus on innovations and strategies to better serve your customers.
Embrace automation wherever you can, but your goal should always be to complement the critical human elements of your business rather than replace them. Customer service is one example of an area where I refuse to compromise on genuine human connection because our relationships with our customers are our greatest asset. Let automation handle the repetitive and mundane, and let your humans focus on the creative and strategic.
As a software business, our clients utilize our product to streamline tasks like data entry and accounting. We often share tips about using artificial intelligence to save time when clients are writing rental listing descriptions, but encourage them to maintain a personal connection with their tenants by showing properties in person and being available for maintenance issues as they arise.
Related: How to Advance Your Brain's Efficiency and Automate Mundane Tasks
3. Success is built on relationships
As Helen Keller once said, "Alone we can do so little; together we can do so much." Relationships are foundational to business success and nurturing them is critical to your growth journey. Investing in and celebrating your employees, vendors, partners, customers and community will strengthen your business from the inside out.
An inclusive and supportive workplace culture that recognizes wins will create more engaged, passionate and productive employees who will thank you by driving your business forward. Fostering long-term relationships with your vendors and partners ensures you will have trusted resources and allies in your corner when both challenges and opportunities arise. Actively engaging with your community through charitable initiatives, events or local partnerships will amplify your brand's reach and influence. Investing in your relationships is an investment in the long-term success of your business.
4. Establish trust through expertise
A lasting competitive edge is more than your product or service — establish your brand as an authority that customers can rely on for accurate and valuable guidance and expertise. Solidify trust and your reputation by becoming a go-to expert in your field.
My property management software company has prioritized becoming a trusted resource for landlords, property managers and tenants by offering a variety of free, on-demand educational tools that empower them to navigate an ever-changing industry. I've found that this not only strengthens customer relationships and loyalty but differentiates us from our competitors. We're not just a service provider; we're a committed partner invested in the success of our clients.
Related: 7 Ways to Prove You're Trustworthy as an Entrepreneur
We just recently celebrated a 76% growth rate, surpassing the year three average in our year 17, because our strategy and approach have always remained rooted in our guiding principles — from startup to sustained success. As you adopt new technologies, strategize with your team and continue to navigate the growth path, always stay true to your roots. Frequently revisit the core values that founded your startup and let them be the ultimate guide on this journey. Remain grounded to leave a sustainable and resilient legacy that endures success for years to come.
