Startup products: Need solutions for commercialization problems

Startup products need to meet market demand. Photo: VAN HOANG

Developing a quality mentor team

In the startup ecosystem, the support of a mentor team is like a “guide” that helps startups avoid going astray. It is not only a sharing of experiences, but also a foundation to shorten the journey to bring products to market.

Mr. Nguyen Bao Quoc, CEO and founder of BQ Training, believes that Da Nang should focus on building and developing the spirit of mentoring and coaching. When implemented in organizations, SMEs and science and technology enterprises, this approach will help improve work efficiency and effectiveness; towards building a professional consulting network for startups and SMEs.

In addition, it is necessary to focus on improving the capacity for entrepreneurship and innovation through systematic training programs, researched in stages, suitable for each group of enterprises, industries, and industry characteristics. At the same time, there should be specific policies from taxes, investment capital, technology infrastructure to connection space... to nurture the spirit of daring to start a business, daring to innovate, daring to challenge the old.

Meanwhile, Ms. Vo Thi Kim Oanh, Head of the Faculty of Business, Swinburne University, said that one of the reasons why many startups find it difficult to go the long way is the lack of timely and appropriate support. Because at each stage of development, startups will have different needs.

If in the incubation stage, the startup needs an experienced mentor to guide and accompany it in perfecting the product. Thereby, helping the startup clearly see its strengths and weaknesses to adjust the product to suit market needs. This is an extremely important stage, deciding whether the product is strong enough to "touch" customers or not.

When entering the commercialization stage, startups not only need a complete product, but also have to solve two difficult problems at the same time: capital to expand the scale and long-term development strategy to maintain a foothold in the market. Without support from a mentor with experience in management, strategy and capital mobilization, startups can easily fall into a state of "stillbirth" despite the potential of the product.

“The city needs to develop priority policies that are “tailor-made” for each stage of a startup. More importantly, it must answer the question: “Who is the best supporter for startups in each specific stage?” Because only when a quality mentor system is formed, suitable for each stage of development, can startups be guided in a sustainable and substantial way. From there, we can gradually find a solution to the problem of product commercialization,” Ms. Oanh proposed.

Similarly, Mr. Tran Dang Huy, Founder of Local Life Technology Co., Ltd. also said that, in addition to the mentor network, Da Nang needs to create conditions for startups to regularly access domestic and foreign experts and investment funds through talk shows, training programs, and capital calling connections.

These opportunities help startups receive feedback, adjust their products, quickly determine their market roadmap, or stop to avoid wasting resources. “When there is a true startup community in Da Nang, the startup ecosystem will truly take off,” Mr. Huy emphasized.

From ideation floor to innovation workshop

In addition to the mentor system, many businesses and experts believe that the space for experimentation, collision and product development is the soil for startups to germinate. Therefore, creating an environment for ideas to be challenged and perfected, meeting market needs is the decisive factor for the survival of startups.

The city has been implementing many solutions to remove difficulties for startup output. Photo: VAN HOANG

According to Mr. Do Quy Su, Chairman of FiveSS Technology Joint Stock Company, the startup community in Da Nang currently does not support each other’s products well. As a result, products have difficulty creating trust with outside customers.

Therefore, the solution is to build a pioneering consumer community - people who are willing to try, evaluate, and give feedback to perfect the product before it is released to the large market. Along with that is supporting product display space, connecting startups with supermarkets, e-commerce platforms and large enterprises.

Ms. Nguyen Thi Cam Thanh, Deputy Director of the Danang Airport Business Center, suggested that the city should form an “idea platform” for businesses and experts to present their needs and connect startup ideas and solutions. This will create a healthy competitive environment, because each startup idea is never unique. When there is a specific need, many startups will join together to solve it, thereby choosing the most feasible and optimal solutions.

“The idea platform will be a place to gather and connect ideas and solutions and create a launching pad to help startups get closer to commercializing their products. From there, it will create value for the Da Nang startup ecosystem, expanding opportunities to the domestic market and even beyond,” Ms. Thanh emphasized.

Meanwhile, Ms. Vo Thi Kim Oanh emphasized that the prerequisite for a startup to be able to commercialize a product is its suitability to market needs. If the product does not meet the actual demands of customers, no matter how novel the idea is, the possibility of commercialization is still zero. Startups need to pay special attention to this factor, because only when the market accepts the product, will the startup have the opportunity to develop sustainably.

Statistical reports show that the rate of Vietnamese startups successfully raising capital from foreign funds remains very low, only about 0.5-1%. In fact, investment funds only choose to invest in products that are truly suitable for the market and have high commercialization potential.

In 2023, total foreign investment in Vietnamese startups will reach more than 500 million USD. However, up to 60% of projects are invested in the seed stage, but this capital only accounts for about 15% of total capital.

That said, there is no shortage of startup ideas, but the transition from idea to viable product to commercialization is extremely difficult. In fact, only about 2% of startups can reach the final destination of successful product commercialization.

Currently, the “innovation workshop” model has been applied at many famous international universities. This is where students, lecturers and startups can access infrastructure, technology, equipment and resources at low cost, from which to build test products. Once the prototype has proven to be feasible, the startup will launch it to the market, thereby reducing the risk of failure as well as limiting the loss of capital.

“The early establishment of such innovation workshops not only helps startups stay on track and reduce failure rates, but also contributes to the strong development of innovation and gradually perfecting the startup ecosystem,” Ms. Oanh emphasized.

According to Mr. Vu Tien Dung, Director of FUNDGO Da Nang Creative Startup Investment Fund, given the limited output of startups in Da Nang, the city needs to quickly define and clearly implement key solutions, paving the way for an innovative startup ecosystem.

“Output” needs to become the central goal in policy planning and implementation mechanisms of the startup ecosystem.

To untie this knot, inter-sectoral coordination is needed, in which: the government acts as the coordinating focal point; departments and branches play the role of ordering sandbox support; investment funds provide capital and lead divestment; consulting units support strategy and output; startups focus on developing applicable solutions.

Source: https://baodanang.vn/san-pham-khoi-nghiep-can-loi-giai-cho-bai-toan-thuong-mai-hoa-3300164.html