Many startups breathed a sigh of relief when US federal regulators took over SVB over the weekend and guaranteed all deposits. In the wake of the crisis at SVB Bank, startups need to learn important lessons to help them survive unexpected setbacks.
According to a recent survey conducted by VC NFX, 22% of startup founders are concerned they won't be able to raise funding this year. This finding shows that startups must find ways to survive in a challenging economic climate, especially given the risks of relying too heavily on external sources of funding.
One way to address this issue is to focus on cash flow management and prioritize profitability. This approach can help startups sustain themselves during unexpected setbacks and reduce their reliance on external funding. By achieving profitability sooner rather than later, startups can be better positioned to weather economic storms.
The surest way to achieve profitability is by focusing on those things that most quickly generate sales. The question for B2B startups to ask is: Does our marketing have a clear understanding of the B2B buying cycle and how it has evolved in recent years?
Online research plays a significant role in the B2B buying process, with prospective buyers conducting extensive homework before engaging with a company's representatives. Therefore, startups need to create valuable, relevant, and consistent content to educate, inform, or inspire their audience.
Online research plays a significant role in the B2B buying process, with prospective buyers conducting extensive homework before engaging with a company's representatives.
Additionally, online reviews, ratings, testimonials, and case studies can influence buyers' perceptions and decisions more than any advertising or sales pitch. By showcasing social proof, startups can demonstrate the real-world impact of their products or services, highlight their strengths and competitive advantages, and overcome objections and skepticism.
Data supports the importance of content marketing for startups. According to HubSpot, businesses that prioritize blogging efforts are 13x more likely to see a positive return on investment. Additionally, a study by Demand Metric found that content marketing generates three times more leads than traditional marketing, at a 62% lower cost.
Furthermore, by collaborating with agencies that specialize in content marketing, startups can speed up the execution of their marketing plan, improve the quality of their content, and achieve better results. This approach can be more flexible, cost-effective, and scalable than hiring full-time employees or building a dedicated team.
The recent crisis at SVB Bank serves as a reminder to startups that they must focus on cash flow management and prioritize profitability. One way to do this is by leveraging content marketing to attract and engage their target audience.
A version of this article was originally published on LinkedIn Pulse.