How to Grow Market Share as a Startup

By Fernando Berrocal

What Is Market Share?  Every startup seeks to grow its market share. After all, every business wants to increase profits. The greater a market share is, the more sales it’ll make. An organization's market share is often increased through innovating and creating value, and venture capital funds can assist these efforts. Additionally, through strengthening consumer ties and even by acquiring competitors. The overall proportion of the marketplace that a business controls for the different products and services it sells are referred to as its market share.

Growing Market Share as a Startup

What Does Market Share Mean? The percentage of sales or units a business makes in any particular market may be used to determine its total market share. If a company sells $1 million per year and the overall market sales are $100 million, the company owns 1% of the total market share.

The more market share a business obtains, the greater its competitive advantage. Economies of scale are more likely to exist in an organization with a bigger market share. This benefits the business by allowing it to negotiate better pricing with its distributors or suppliers. It also empowers them to place larger orders, increasing their purchasing power. Additionally, it can also lower the cost of each product as well as the expense of acquiring each customer.

Gaining a larger share of the market: One of the most effective methods to grow your market share is through innovation. When a business introduces a completely new technology or product to an industry, they provide value that their competitors don’t. They will be able to capitalize on new interests and sell to new clients. They can also steal consumers from their rivals since they offer a value proposition that their rivals don't. Many of the clients you get through inventing will become lifelong customers because you are building brand loyalty.

An organization's market share may be protected through improving customer connections. Even if their competitors have great deals or exciting new items, they may keep clients from going to the competition by expanding their existing relationships. Customers who enjoy an organization's products may help it boost its market share by employing the same strategies. This has the potential to transform these customers into brand enthusiasts. By sharing with their peers their excellent experiences with your business, they will be able to generate even more sales. Without having to spend money on advertising or marketing, word of mouth may be a very effective strategy to increase market share. This is especially true in today's digital era when consumers openly discuss their favorite items and services on social media.

Word of Mouth to Grow Market Share

Keeping your Market Share:  According to Certum IT support, maintaining your market share is just as vital as gaining market share. Employees that work for a business with the largest market share in an industry are usually devoted and talented. Keeping the top talent in your sector is one of the best methods to ensure that you keep the market share you've built up over time. It’s extremely difficult to sustain the attributes that made you a market leader in the first place if you often acquire and train new employees. Workers should be treated with trust and respect, building a positive work culture should be a top priority if you want to keep excellent connections with them.

One of the simplest and most reliable methods to increase market share is to purchase a business that already has a large market share. You can break into a specific customer base right away if you buy a company that has already built relationships with these customers. This will save you the trouble of having to build connections with these customers on your own or snatching them from your competitors. Businesses that want to develop swiftly in a competitive market may benefit from an acquisition agreement.

Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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