Topic > Essay on the success of a startup - 1187

Another strategy to follow for start-ups during the recessionary context is the “Lean start-up” strategy (Singh et al., 2009). Many start-ups fail to survive because they spend a lot of time and money trying to produce products that customers may not need or like and will therefore mathematically drive the company out of business. This is what HBS professor Eisenman (Nobel, 2012) claims. Ries, 2011, said; “The success of a startup is not a consequence of good genes or being in the right place at the right time. Startup success can be designed by following the right process, which means it can be learned, which means it can be taught.” The methodology for start-ups aims to avoid waste of money and time. A good example is the Toyota Production System (Dennis 2002). Six Sigma (quality control standard) was developed by Motorola in 1986. It is a set of techniques and tools for improving processes and is a strategy that entrepreneurs can use, in recession or not, to have a successful business. It is a methodology for eliminating defects in any process (Linderman, 2003). In the business world, organizations must compete with each other, and achieving lower defect rates is one way to gain a competitive advantage. Six Sigma helps increase customer satisfaction and build customer loyalty. By achieving customer satisfaction, cash flow is ensured even in case of cyclical downturn in the industry (Kwak and Anbari, 2006). Another important factor, essential for the success of a company, is to control the efficiency of inventory in order to avoid any additional costs. costs, such as holding costs and also to reduce the amount of defects in goods. Companies can control inventory… middle of the paper… explaining why companies choose to respond this way or whether it is advisable to maintain prices through efficient measures. For start-ups, more recent studies state that a recession is normally an opportunity and not a threat, if managed correctly (Williamson and Zeng, 2009). The recent global recession is characterized by its global nature, and the risks that companies in growth markets are taking are becoming more potent than expected. However, research shows that businesses are not doing very well. Williamson and Zeng (2009) stated that a key strategy that companies could adopt to avoid this is to focus on developing what emerging markets do well while offering good value for money. They also suggest that companies invest in research aimed at service and product innovation to offer similar products or services, but at lower expense and cost.