Infrastructure; its scope and importance for healthy economic growth of any startup is a crucial aspect. Most of the budding entrepreneurs, who have recently stepped into the highly competitive realm of business, think of infrastructure as broadly as their office and the related paraphernalia. Setting up a well-defined office in a prime location, where 10-15 people can work as a small-scale manufacturing unit or over computer systems delivering IT services; this is inclusive in the infrastructure, but that’s not all of it.
As a startup, the fresh entrants to the markets need to understand that things are not going to be a piece of cake for them; even when they’re the first of a kind with their product because copycats are available everywhere at your competitors’ disposal. Even a slight alteration to your idea; a nudge to your innovation can create an entirely new identity, especially to mention here – an experienced and a well-established competitor. Infrastructure is now not considered as mere lifeless buildings, offices, machines & furniture anymore; with ever-changing times, it has been bestowed an entirely new meaning altogether. Focusing on primarily the infrastructure here, as a growing business, you have to carefully establish a balance between the internal as well as the external factors that may impact the sustainability of your startup.
What are these internal & external factors?
These are those decisive factors that have a significant impact over any startup’s success/failure either directly or indirectly. Let’s deal with and know more about them individually.
Internal factors:
These include the following constituents: –
Human resources
The most crucial internal factor of all. The workforce of the business is what drives it towards growth or doom. With skillful and motivated employees as well as risk-taking and progressive-minded employer(s), human resources can be guaranteed as the sole driving force that thrusts the business growth beyond expectations. The organizational structure plays an important role here. Make sure to adopt an all-inclusive one to avoid any possibility of friction.
Capital resources
From planning to delivery, every phase of a thriving business requires capital as a vital elixir. Your startup cannot survive without capital resources. With sufficient budget, your startup can expand its scale and quickly launch the projects. Investment is gradually becoming a powerful tool to sustain the demand and supply of capital requirements.
Operational efficiency
The success of your startup in a marketplace is highly dependable on this factor. Frequent assessments of making yourself aware about the level of proficiency at which your business engine is running will surely give you ample options and chances to find solutions to the hurdles and bottlenecks; thereby giving your business efficiency a boost.
Innovation
People are now not working hard; they’re currently working smartly. How your employees work, how they communicate internally as well as externally, how they deal with intro- and inter-departmental disputes, how they brainstorm over any project, research or project; every aspect is affected with an adequately directed innovation. As a startup, your business needs that are cutting edge, that unique, that unusual appearance that does your business, your product stand out from the crowd of competitors in a marketplace. A different approach towards manufacturing, a variable-based brainstorming over any research, a new market plan for advertising and branding… anything that includes innovation should be adopted and executed. It’s risky, but then where’s the fun in being monotonous?
External factors:
These include the components listed below: –
Economic scenario
Two determinants majorly impact economic scenario:
The economic growth of the country.
The status of sustainability of startups.
Both are interrelated.
Slow economic growth with a diminished sustainability period for business entities is like poison for startups. A healthy economic environment with a flourishing platform for performing startups does the trick for creating space for investments and business setups.
Regulating laws & legal aspects
The regulatory and statutory provisions, if and whenever strict and bound-to-adhere by the local government, have an adverse impact over the business growth. Facilities like least inclusive red-tape, single window clearance, quick loan approvals, least possible interest rates, etc. trigger the success of a startup and make sure to sustain it over a considerably long period.
Surrounding infrastructure
It’s an old saying – “The company you keep… eventually affects you.” If the physical infrastructure of your business is surrounded by marketplace business entities that compete in a healthy manner, it’s considered good when compared to a startup landing in-between shell companies and shady businesses involved in crony capitalism. Choose your business location wisely; it does impact your clientele and business growth.
Customer demands
Have the characteristics like customization and flexibility in your business model. Your startup is working to satisfy your customers and if this is not happening… there’s a flaw in your business operations. Analyze it, assess it, improve, remove or replace it as soon as possible, because losing a client is probably the worst case scenario for any startup or growing business. Understand one thing that a satisfied and happy client is a potential selling point for other clients. This helps your business in expanding its client base. Utilize your customers efficiently and smartly.
Thus, infrastructure has included such a variety of meanings other than just an office or a building. With the ever-expanding scope of business growth, the impact of support and the constant innovation to enlarge it further and farther is now not a distant reality.
