Startup Marketing Bubble that could burst Anytime
Startups like Uber, OLA and Zomato have failed to become profitable and they are sitting on a massive bubble which can burst anytime.
Back in the days of Nikola Tesla, George Washington and Edison the biggest expense of launching a startup was developing the product. They did spent money on marketing but it didnt exceed the development cost.
Today the biggest expense of launching any startup is marketing and social expenses. Uber Spent lot of money on aquiring Drivers on its platform by giving Incentives. Food delivery apps like Zomato spend so much money on giving discounts.
If you are building a product or service which people like you shouldnt be spending so much money on marketing. Google didnt spend anything on advertizing still it is now such a big profitable company. Facebook didnt spend anything on marketing also. Both Google and Facebook are highly profitable companies.
Do you see any pattern here ?
Truly Successful and profitable startups were natuarally liked by people and therefore they never had to spend even small amount of money on marketing and if your startup cannot become successuful unless you are spending huge amount of money on marketing .. it is sitting on a marketing bubble which can burst anytime.
Startups like Uber, OLA and Zomato these are the kind of startups whose success has been artificially created. None of these startups are profitable.
I might sound a little old fashioned here ... but our old business values are still GOLD Standard ... The best way to start any business is to win people's heart by giving them better service. You cannot compel people to like you by giving them massive incentives and discounts. People will still not like you.
Quality of your product and service is still the most important aspect of your business. Provide Good Service - Just like Google did and facebook did ... and you will be rewarded with people's love and free word of mouth publicity.
If you cannot become successful unless you spend millions of dollars on incentives and discounts ... you dont deserve success in the first place ...
Startups like Uber, OLA, Zomato ... all such loss making startups are sitting on a startup bubble - an artificially created success with the help of massive funding which could burst anytime.