Revenue FOMO: Fighting the Fear and Achieving Sustainable Growth
FOMO: the fear of missing out. It’s something that affects us all from time to time. It even drives certain marketing campaigns, encouraging potential buyers to think that they need to buy now before a product is no longer available at a particular price point or with certain extras.
FOMO can be great. However, it should never, ever be a driver for your overall business strategy.
Revenue FOMO is the fear business owners have of missing out on revenue from multiple sources. This can lead to anxiety around business growth (or the lack thereof) and an unfocused approach to planning for the future and attracting more investors. You only have so many eggs, so you want to pick the smallest number of baskets possible to put them in. Or, put more simply, focused, targeted sales and marketing efforts are always more effective than a scattered approach that undermines the long-term business strategy.
Targeting the Right Audience
As a tech startup founder, you’ll already have explored the product-to-market fit of your offering. You’ll know what the pain points are of your target audience, and you’ll know exactly how your proposition addresses those. Because of this, you’ll also have buyer profiles for your marketing and sales teams to utilize, plus a good idea of the types of VC investors you’ll want to attract. You probably even have at least a five year plan looking at how you want to grow your business and what level of investment you expect or are aiming for, in order to achieve this. If you’re still struggling to define your target market, you might find the advice you need in this blog: Marketing for Startups: Define Your Target Audience in 3 Steps.
How does revenue FOMO undermine this? If you have a great plan and a workable strategy, suddenly moving away from this due to the temptation of short-term gains can topple that strategy, actually setting you back even if you do manage to make some revenue in the here and now.
This is because the second you follow instant business gratification, you and your marketing teams are no longer focusing on leads that can turn into long-term revenue, which is what attracts investors and potential buyers.
Indulging in Revenue FOMO Drives Investors Away
Most startup founders and entrepreneurs use their own savings or other finite capital to get their business off the ground, which is why careful planning must include attracting the right investors to keep the business afloat. Successful entrepreneurs are active in their niche industry sphere, discussing emerging technologies, news, and even the ethics involved with their particular target market.
However, if you’re aiming your product or service at every possible client or customer, without discernment, it’s impossible to also spend time establishing yourself as an expert in your field – something that definitely speaks to investors.
Your company should be recognizable as a force of nature in its industry, no matter how small you are. This means focused, highly targeted social media activity, marketing campaigns, and the right content aimed at the right people.
Competitors can Drive Revenue FOMO
CB Insights reports that 20% of startups that fail do so simply because they were outcompeted – someone else either got their first with a similar tech solution, or they did it better. It’s no wonder, then, that founders can feel like they have to do everything they can to outshine their competitors – another prime example of Revenue FOMO.
While it’s important to stand out in a crowded market, you shouldn’t do this by clambering over competitors. That can quickly turn into a pile on, and there are no guarantees that you’ll come out on top. Instead, focus on your own business in terms of branding and marketing, and ensuring the right messages go out to potential customers and investors. Work on promoting your values as a company, highlighting the great relationships you have with other businesses, and even positive impacts you’ve had within your community or the wider industry.
Final Word
Revenue FOMO drives you to jump on every single potential deal without considering the impact it will have on your overall business strategy. How do you resist this temptation? With the right advice from the right experts, on both branding and marketing. Come and speak to Arch Collective via a 15-minute introductory call with our startup-focused marketing team. They’ll analyze your needs and connect you to the right solution or marketing freelancer to get your tech proposition on the right path to sustainable growth.
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