Rapid advances in technology have revolutionised the way companies handle Big Data, which has simplified access and storage of large volumes of information. This has also seen the springing of numerous database company startups all across the world. The recent past has witnessed the splitting of the database market into many fragments. This has been associated with rapid gains in popularity for numerous young entrants, which equates to more funding. This notwithstanding, in order to compete against the established database companies such as Oracle, SAP and IBM, you need to be witty as well as prepared. Here are a few of the secrets behind the success of database company startups.
A clear description of the business, the services it provides and how successful it is is a good place to start. This will make it easier for your clients to find you and to make a choice based on their needs. A small section on your corporate website outlining some of the clients you have closed deals with is an added advantage. However, because most startups may lack some of these success bites, a clear description of your capacity, expertise and size may do the trick. Avoid ambiguity at all costs in all corporate communication, including the corporate website.
This is because the database market is as diverse as the number of players in it. For a company to thrive effectively, it needs to identify a niche, an area of strength in which the startup can flourish and grow. Databases vary in terms of purpose. Some clients will require transactional databases, which means that they need to be able to handle quick access and reading of critical data, as well as be able to store this data forever. Be clear and precise. Don't make it hard for your clients to find you.
Changes in technology have forced established database companies to be more adaptive. Database company startups must be as well. The popularity and allure of cloud-based infrastructure for running various services has pushed database engineers towards developing databases that are well-suited for the cloud. This makes it possible to expand databases simply through the addition of more servers as opposed to revamping the machinery. This also attracts an additional advantage of cost reduction. Remember, just like Bluetooth, everything is much better on 'the Cloud.'
A company that provides one service well is definitely admirable, but one that offers more services well is often preferable from a client's perspective. The strength of database companies lies in their ability to excel at several characteristics. This includes, but is not limited to excellent storage capacity, sound data organisation, speed achieved through maximizing memory usage within the servers, as well as the ability of the database to support various widely used SQL languages. In a highly competitive industry, expertise in satisfactorily offering these services will definitely give you an edge over the competition, and increase the popularity and/or awareness of your database company start-up.
It may take time for a startup to gain a few paying customers and maybe even longer to get to a few dozen more. One characteristic for startups is a small employee force. As the firm grows and gains new funding, any increase in the employee count should be aimed at focusing on sales and marketing. This builds the visibility of the young business, as well as generating sufficient awareness that should ideally translate to new business.
Companies such as MongoDB whose infrastructure supports running applications on the cloud is valued at almost $2 billion following fundraising earlier last year. Cloudera, also aligned with designing support applications that run on the cloud, is valued at north of $4 billion. These companies also share in their interests in raising revenue. The ability to take advantage of such funding opportunities may simplify the ability of the start up to compete with the established players, as well as to grow. There are numerous investors lining up to support startups, as well as the option to plan for initial public offering to turn popularity into profits.
Startups versus established companies can seem like a David vs Goliath scenario. The ability of a startup to rival the existing giants lies in its capacity to fulfil modern demand for faster data management, as well as the ability to fulfil the needs of today's market. This works in totality to deliver a product that is capable of not only competing against market giants, but rivalling them. This presents one of the key drivers of success. In the modern market, technology based companies are best poised to succeed, as the current generation relies more heavily on technology than before. A database company startup should make use of these opportunities to carve out a space for themselves in the market.
In closing, it is worth stating that every great business requires effective leadership at its helm. This, coupled with the tools to success as identified above, provides an avenue for reducing the risk of business failure, as well as facilitating growth and adaptability for new business. There is a kind of magic that is associated with startups in the very beginning, and the best way to making the most of this magic is through laying down the mechanisms that will allow your business to grow. Why risk failure when you can succeed?
