Every entrepreneur aspires to build a business with a global brand name, a growing client base, and a high investment valuation. Many of them overlook the fact that building brand value through extensive mass media advertising is pointless unless you also spend in staff happiness, customer loyalty, and product upgrades.
Any start-up business can learn from the recent problems faced by Byjus, Paytm, and most recently Bharatpe.
Create value inward: Invest in your product, employees, and customers
Before Byjus was requested to appear before the authorities for an investigation, the company was the target of harsh criticism from both its staff and consumers. Employees were incensed about the pressure tactics used to get them to meet high targets and the way they were fired to make room for new hires, while customers were angry about the high-intensity personal-call marketing tactics (they would call an existing customer every day to market the same product) followed by non-upgradation in the product quality (even a sixth standard kid could find spelling mistakes in their online study material).
There were already a ton of consumer complaints and former employees’ negative remarks on the internet. (The same author has forewarned of this on this website in an earlier piece.)
As a unicorn business, Byjus prospered and had a high valuation, but it was losing its internal brand ambassadors, which were its clients and staff. The TATA Group is one example of a company that has made consistent investments across generations to retain its customers and staff. These two pillars—employees and customers—always stand fully behind them, even under the most trying circumstances.
Develop a strong brand gradually.
According to Bill Gates, “patience is a key element of success.” We should pay attention when a man who has built a massive empire from his business speaks.
Mr. Kochouseph Chittilappilly, the creator of Wonderla, Veegaland, and V-Guard, stated on a recent talk program, “You all know me now as a successful businessman.” All those years in the past when nobody knew who I was. The goal of business is to grow gradually and steadily.
Nowadays, the majority of start-ups aim to be unicorns and grow so quickly that they trip and collapse. The fall will be heavier the higher you go. Byjus’s recent problems stemmed from its rapid expansion through acquisitions; in fact, Paytm’s limitations came about as a result of its foray into every facet of the financial industry rather than narrowing and stabilizing its primary business as.
These businesses may, of course, make a big mistake and pay a heavy price for it. Entrepreneurs and start-ups need to understand the need of patience, develop their brands gradually and methodically, and maintain all necessary financial and physical infrastructure before expanding.
Observe the local laws
To ensure long-term success, any firm must abide by the laws of the jurisdiction in which it conducts operations. Your company won’t succeed for very long if you only focus on raising valuation and attracting well-known investors.
Spending a lot of money on mass advertising will help you establish a brand quickly, but adhering to the law will be necessary to maintain it over time. Prominent business minds have always asserted that the legal framework of a country determines the viability of a brand, product, or technological advancement.
You must be aware of the laws, be informed about any changes, and abide by them strictly, especially if you are a start-up. Smaller businesses might not be able to handle the financial strain of dealing with legal troubles, in contrast to larger ones.
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