Regaining momentum for startups

It's normal to run out of steam on the growth journey, but how the founder reacts and brings the start-up back onto a growth trajectory is what makes the difference.

It's normal to run out of steam on the growth journey, but how the founder reacts and brings the start-up back onto a growth trajectory is what makes the difference.

With the market constantly changing, it's quite normal for startups to go off track or lose momentum.

More specifically, startups begin to see a loss of momentum through several indicators, such as a slowdown in the number of new customers and revenue growth; an increase in the rate of customers leaving the platform and not using the product or service; continuous rejections of investment from investors, making it difficult to achieve the expected funding rounds; and declining team morale…

When a startup finds itself in this situation, Ms. Hoang Thi Kim Dung, Country Director of Genesia Venture Investment Fund in Vietnam, believes that the first important thing a founder needs to do is to deeply reconnect with their vision and development goals. After that, the founder needs to quickly review, analyze, and identify the key reasons leading to this setback.

Next, startups need to plan improvements to adjust and regain momentum. If, after 3-6 months of implementing the plan, growth momentum doesn't return, the startup needs to consider more drastic redirection measures to create positive growth momentum. For example, the startup could develop new features on its current product, or if the product is no longer viable, it should consider shifting to a more suitable product/service.

As a startup investor with extensive experience observing and supporting numerous startups in various fields, Ms. Dung believes that a startup running out of steam, failing to meet growth targets within 1-2 months, or losing momentum in a short period is not necessarily a serious problem. However, what truly matters is how startup founders react to this loss of momentum.

"It can be said that the biggest difference between a startup that can regain momentum and one that cannot lies in the founder's honesty in identifying problems, quickly developing improvement plans, and decisively implementing the necessary adjustments. This process requires transparent communication between the founders and their team and investors, so that everyone can work together to provide support before it's too late," emphasized a representative from Genesia Venture.

Source: https://baodautu.vn/lay-lai-da-phat-trien-cho-start-up-d249085.html