Startup founders are often blinded by big dreams and eventually dulled by the daily grind, leading them to the path of failure. In reality, business has its own risks and this occurs not only in small businesses but in established companies and franchises too. Some businesses die down over a number of years despite carrying a prominent name in the industry. Knowing that the business climate can be erratic, it is always best to be prepared when the storm comes. To face the challenges of the business world, here are important points to keep:
The number one reason why startup business tends to fail is that there is no market to patronise the product. Before creating your product, it is vital to determine your market first. Never believe in the illusion that your product will make a good sale well in fact there will be no one to buy them. The world of business is highly competitive therefore, establish your market first before introducing your product.
It’s very important to determine market need first. Run a very thorough market research on who would use your product or service, identify competitors, think on how your idea can make money, how soon can it make money, what are its main points of difference from other similar ideas, and are you the best person to execute the idea?
You can start by profiling your end-users, even if they are not paying purchasers of your product or service. Identify who they are and why they would use your product or service. Think of how these potential customers would also be able to spread the word. Get to know your target market. Study them and understand their behavior. Know what will keep them coming back for more.
It’s also important not to oversell your idea. Determine how much people would pay for it basing on what people are currently paying for with the similar products or services. This can be very challenging if your idea is genuinely disruptive. Most likely your idea’s appeal will rely on lower cost or its efficiency, or both.
It’s important for your idea to stand out. List three differences that it has with already existing ideas. If it’s similar to a currently existing platform, the competition can easily follow through and kill your idea. Demand validation and seek ways to make it better. When you are sure about it, ask yourself if you are the most reliable person to deliver the idea. Take your ego out of the equation and be realistic. If you don’t have the technological skills, connections or the money to push through, don’t force it.
Make a plan, build clear measures to get results, give yourself a timeframe to succeed or fail, and build a team that will contribute to the attainment of your goal. List necessary skills that you need to acquire. Work hard and set your mind to it in order to succeed.
The world of business is like a battlefield. You’ll never know who your opponents are. What’s important is that you are ready to combat any encounter. Consider these tips as your bullets and then you are more than ready to face the fight.