Business Startups Can Beat Giants

There are a lot of startup companies in the Philippines, each with its own value proposition. Every one of them is bringing something new to the competition, whether it is game-changing, or merely self-defining. In fact, some of them have upped the game in their industry by offering services that become standards overtime. But why is it that we seldom see established companies brace them-selves against these fledglings? A lot of longstanding companies do not bother looking into their startup competitors because they have been the standard bearer for so many years. But how sure are you with the integrity of your sales?

Let’s take a look at the story of David and Goliath. Although it is a classic story of how the small can beat the strong, it is also a story of using the available resources and present circumstances to your advantage. See, David knew that he would never beat Goliath in close quarters combat. However, he knew that this giant wasn’t most likely agile than him, given the weight of the armor Goliath was wearing. This means that he could create a situation to maximize his advantage. So what did David use? A slingshot. There is more to it than that. Some of you would probably be thinking that a slingshot is a measly weapon, or even a toy, which makes the story even more astounding. No. A slingshot can, in fact, shoot projectiles that can penetrate as strong as a bullet would. A well-placed and timed shot can kill. This is a story we can all relate to how startup companies should be considered a threat by existing companies.

For all of us business owners who have been in our industries for quite a while, here are a few notes worth taking:

First of all, we must avoid having that superiority complex. The worst possible behavior that any entrepreneur could have is being proud. This is when you think having captured the market first makes you invincible. When you cling on to the idea that your experience and time in the industry make your business better and the only option for the consumers, you start to overlook the idea that consumers are ultimately the ones who dictate which company wins. If a new company happens to offer something more than what we offer, even for just a tiny amount, that may be enough to collapse sales.

Second is underestimating unusual strategies by the startups. Why are they offering this? What is up with the gimmicky posters? There are industry practices, but there are also game-changers.

Know that every industry practice was once an unproven concept. In looking at unusual strategies used by startup companies, you must look deeper and ask yourself what would happen if you did the same. In doing so, you may soon discover that some of these strategies are innovative concepts that are fatal to the competition and enable you to steal the lion’s share of the market.

Finally, we must always be aware of the trends, even if they are merely passing. Trends might not be permanent, but the fact will always remain true that there will always be a new trend. Startup companies nowadays have the advantage of a better grasp of modern trends, especially if the entrepreneurs behind the enterprise are the young innovators, fresh with ideas, topped with understanding on how to tap their entire generation using the existing trends in lifestyle. Generation gap is the main challenge for old-timers, especially when we are disconnected with the cyberspace. In order for us to survive and keep our market, we must exert great effort in understanding trends.

Always treat any startup company as potential market challengers. Some of them will have new guns that might be at first unnoticeable. The younger generation of entrepreneurs are more creative and this is great for our country. They will be subject to the same landscape that we are in, but that does not mean that they will feel the competition the way that we do. Some of them might have crafted stronger strategies.

For established companies, they must not ignore startups just because they are small but judge them instead on the potency of their new ideas. We must always learn how to adapt and adjust our strategies. Learn to let go of our old ways if the modern trends tell us they won’t work anymore. Be willing to embrace change and uncertainty. Remember that almost all the giant firms of today were startups when they started.

*Originally published by the Manila Bulletin. Manila Bulletin, C-6, Sunday, March 6, 2016. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.