In this age when India has become the hot bed of startups and with such a thriving eco-system to support the startups, it is still pertinent to remember that 80-90% of startups fail, as per a report by IBM. According to the Startup India program, around 27,000 startups registered under the program till 2020 and almost all the reasons why Indian businesses fail early, are connected to innovation and leadership: inadequate business models, bad planning, flawed consumer insights, or a lack of unique ideas. If we specifically look at the B2B space, the traditional B2B supply model is built on credit. Companies that ventured into non-secured credit and without any credit rating policy dictating the credit line failed as well as companies who didn’t manage their cash flow well to realize the revenue into a tangible entity.
In this blog we will investigate major areas that startups have to look into and gradually we will dig deeper to uncover the final truth!
So lets first understand the journey of a startup irrespective of whether it is in B2C or B2B space.
JOURNEY OF A STARTUP (in B2B or B2C space)
- Being Aware of Your Target Audience
As a creator of a startup, you must consider your target market in every move you make.
- Fostering a Positive Work Environment
Your startup's team strength has the power to build or kill your Company.
- A Well-Thought-Out Budget
Any startup's finances are always a top priority.
- Uniform Marketing and Branding Approaches
A significant aspect of your startup's narrative is branding. It's what conveys to the public your brand as an organization.
- Putting Processes in Place
Building processes around the major levers i.e. Procurement, CSAT Measurement, Finance etc creates the backbone of the Company
- Have a Robust Accounts Receivable Process
Generating Sales is just the first step, collecting the receivables is the most important step to get realized revenue. Making Sales is just the beginning. Getting the receivables collected is the most crucial stage.
- Opportunities for Networking
Make an effort to expand your network among the individuals you regularly deal with, such as mentors, suppliers, clients, investors, and industry experts.
- Locating Investors
Seeking the ideal investors for your startup is one of the most crucial tasks you'll have to complete. Attracting investors' attention and holding their interest long enough to close the deal are two different things.
You must have a thorough understanding of your startup's value proposition, current state, and future goals in order to make it appealing to investors.
- Aiming to be Adaptable
Establishing your non-negotiables should be your first priority when beginning a firm. No matter how well you prepare, unforeseen circumstances and problems will inevitably arise. Be prepared for the unexpected and flexible. Markets shift.
So now let’s look deeper and understand the B2B startup requirements in the order of priority so as to understand how the contribution of Accounts Receivable as a function is critical.
AR processes include cash flow management, Credit Rating of customers, customer touch point management, multi-channel engagement, etc.
- Prioritize Customer Experience
One of the most important things to keep in mind when starting a B2B business is to prioritize the customer experience. Customers demand a seamless and personalized experience, and it’s up to you to deliver. Today customer experience encompasses all the touch points between a supplier and a customer. Accounts Receivable Automation platforms such as Inebura give self-serve functionality to customers where they can view and check their open invoices without any manual intervention
- Focus on Cash Flow Management
Managing cash flow is critical at all times, especially during uncertain times. Prioritise essential expenses and cut down on non-essential costs.
- Embrace Emerging Technologies
B2B startups will need to keep up with emerging technologies to stay competitive. This includes technologies like AR Automation Tools, Blockchain etc. By embracing these technologies, you can improve your products and services, create new streams, and enhance customer experiences. Also this helps in scalability to handle unprecedented growth as well as help in adaptability.
- Leverage the Power of Data
Data is an asset for B2B startups, providing insights into customer behaviour, market trends, and business performance. AR Automation Tools such as Inebura provide deep customer payment insights as well as predictive analysis of cashflow. Startups that leverage data effectively will have a competitive advantage. By investing in data analytics tools, establishing data-driven decision-making processes, and prioritizing data security, you can make informed decisions and achieve business growth.
- Collaborate with Collaboration Tools
Collaboration is key to success in a B2B startup, and collaboration tools can help you achieve it. Consider investing in collaboration tools such as Inebura to improve team communication, customer self-serve service, customised workflows for faster resolution and productivity.
- Diversify Revenue Streams
Explore new revenue channels or pivot to more viable business models to ensure a steady income.
- Foster a Culture of Innovation
Innovation is essential for B2B startups to succeed.
- Build Strong Partnerships
Partnerships can be a powerful tool for B2B startups, and can provide access to new markets.
- Focus on Employee Wellbeing
Employee wellbeing is becoming increasingly important for B2B startups. AR Automation Software such as Inebura help in employees being engaged in more strategic work and lets its tools handle the heavy lifting of manual tasks thus removing room for errors and discrepancy which creates unnecessary friction in an organisation.
- Embrace Digital Transformation
Use technology to enhance operational efficiency and reduce costs. Here again the role of Accounts Receivable automation tools comes to the forefront which helps in operation efficiency and reduce costs through optimal manpower deployment and lesser manual intervention.
- Adaptability
Adaptability is something which has to be there for any business whether in B2B or B2C. AR Automation tools such as Inebura can adapt to changing business needs and integrate with other systems, ensuring continuous improvement.
Accounts receivable automation tools are a powerful asset for B2B startups, providing a wide range of benefits that enhance efficiency, accuracy, and financial management. By streamlining invoicing and payment processes, reducing errors, and providing real-time insights, these tools help businesses maintain healthy cash flow and improve customer relationships. Moreover, the scalability and adaptability of AR automation ensure that businesses can grow and evolve without being hindered by manual, error-prone processes. Implementing the right AR automation solutions and continuously optimizing them can lead to significant cost savings, better compliance, and a stronger overall financial position, making them an indispensable component of modern B2B Start-ups.
To know more about how Inebura can help, write to sandeep@inebura.com
As Reid Hoffman, Co-founder of LinkedIn once said “An entrepreneur is someone who jumps off a cliff and builds a plane on the way down" –
Well, I would like to add that more equipped the entrepreneur is after jumping off the cliff, more will be the chances of him building a robust plane!