Now, we live in a world where the number of emerging startups and entrepreneurs has been highest ever than before. Starting own business and taking it to success is a risky way of earning money and recognition but more rewarding than some jobs. Setting up a startup at the initial phase may seem easy but is quite intimidating and risky to make it through the success. Here are some startup tips to keep in mind before jumping into the world of entrepreneurship.
Some of us think the ideas that pop into our heads are not worth the time. You may have thought your ideas are useless but look at Uber, and Facebook, ordinary ideas but very successful businesses now. You’ll be surprised to see that society also needs the simplest of ideas, contrary to popular belief of good ideas being complex, which can create a space for itself. Just be observant to sense the problem and market. Create a disruption with your creation and succeed.
- a. Analogous Solutions
This method lets you borrow solutions from other fields and change it appropriately to match the problem.
- b. Mixing Solutions
In this method, you mix two ideas to synthesize a robust one.
- c. First Principal
Made popular by Elon Musk, this approach demands one to view each problem uniquely without any judgments. Break the problem down and build upon them. Rather than borrowing solutions from problems that may seem analogous, this is a chance to create a unique solution. It is the opposite of analogous.
With an idea in your head, you’re one step closer to your dream. Planning is a lot like thinking it through. This is the step where you carefully devise methods to bring abstract ideas into life. It involves a detailed map of where you start and where you want to be.
- a. Recognition of targeted Demographics
Market, Market and Market! You may have heard the cliché, but it is there for a reason. Identify your market by outlining the geography, the population, the age group, and the culture of where and to whom you want to sell the product.
- b. Seed fund and co-founder
Find a person that can see your vision and have mutual trust, a person who is ready to get on your boat and has skills.
You might be rich enough to fund your startup but it is a bad idea. In addition to funds, Investor brings experience and influence which is very important. Collect funds by pitching your ideas to people in the industry, your circle, VCs, and Angel Investors, or by getting into an incubator or crowdfunding (kickstarter.com).
- c. Product prototype
Create a model of your product or service to convince investors and customers of potential market, customers and give them a vision of the future. You must put an extensive amount of work to develop the product you are trying to sell while convincing investors that you are the one to do it.
- d. SWOT analysis
Analyze your Strength, Weakness, Opportunities and Threat continuously to refine the product.
- e. Marketing strategies
Create marketing strategies according to the target market. Social media, e-mail, and sites that let you promote your product by posting guest articles and ads on their pages are more effective ways to reach customers than traditional TV and radio marketing. The idea is to hide from your competitors and be visible to customers. Sometimes failure can throw you into fierce competition, an improper marketing strategy will be just a waste of money and the whole brand will be a disaster. Don’t go off the rails.
- f. Revenue model
Well, the money-making part! Be sure to identify and acknowledge the possible streams of monetization. You might as well shoot yourself in the foot than shut those possible streams. Decide how you want to sell. There are many models like subscription, rental, licensing, or free but charging fee for only premium services (Freemium). Choose one that resonates with the product and market where you are selling.
The most notorious part of the whole process is the execution.
This is when you stand up for the idea and take it to the mass. Registering, promoting, marketing, and fighting rivals can be the most financially, emotionally and physically exhausting task to do.
- a. Legal
Legal startup tips are necessary for any business. The first one is registering your business legally. Try to get some legal advice because laws can be freaking ridiculous. Just look up Uber if you think this is simple. New businesses run into new problems but old regulations. You must have a connection with an audit firm for the purpose of policies and procedures of legal actions.
Also, you must be familiar with the recent government rules and regulations which might affect your startup growth later. For example, on April 25th, 2022, the Seattle City Council and Mayor signed a letter urging the United States Senate to pass the SAFE Banking Act. This bill allows cannabis businesses to use standard banking services, allowing them to move away from the cash-only model. It is good news if you are going to start your business on something like that.
- b. Human resource
Hire some people. Someone who can solve the problem rather than the one who does the given task is a better choice. Develop a collective vision with the team. Motivate them, and bring them to your side to create a beautiful workspace.
- c. Scaling product
If your product has to reach larger masses then growth opportunities are great. Keeping in mind the scalability of the product is important. Some start-ups fail to scale.
Moving from garage manufacturing setup to mass manufacturing, keeping the supply chain robust to meet the demands of increasing customers. This switch from smaller to bigger or the evolution of scope is where many encounter obstacles and stop the growth altogether which may eventually wind up the business.
- d. Meeting/Conference/Educating
The acting like entrepreneur part. Attend conferences, social events, interviews, and exhibitions. Promote the product personally to a larger mass. Create a marketing campaign to reach out to your customers. Again, the idea is to hide from your competitors and be visible to customers. Educate the population about the product (what it is/How to use) this is important for new products that are not intuitive.
Monitoring the executed system is an essential phase. It’s a constant observation of executed plans in order to ensure whether they are going on as predicted. Sometimes, adverse situations may appear and things do not turn out as planned. In this scenario, modify the plans to mitigate the problems. So monitoring is like a control system that involves the process of adaptation despite the adversities. Following are the key points for monitoring:
- a. Feedback/Reviews
Tracking the response from customers should always be the first priority. As everything we are doing is to make the customers happy, their slight negative remarks may turn the whole plan upside down. If the reviews are positive, there is nothing to worry about (this does not mean having a deep sleep until someone starts to rant) but getting negative reviews is the worst nightmare come true. Negative reviews do not just repel current customers but also halt the growth of future customers. Take it seriously.
- b. Competitor’s response
It is like confronting the assail from the enemy and releasing a new one. When you enter the market with your product, competitors may change their strategies to secure their customers and their strategies are never healthy for us. Keeping eyes on their moves is important.
- c. Revisit decision/strategies
As said, change is the only constant, the market is never at rest. People change, their interest gets updated, new competitors arise, rules and regulations are reformed and we have to cope with these all. Look back at your steps to whether they are on the right path.
- d. Opportunities for growth
In the world of entrepreneurship, growth is the theme. Constantly observe your sales rate. If they are high enough and breaking the records, it’s not the time to rest but an opportunity for a greater establishment. Startups that fail to grow are always at the risk of decline.
These startup tips are just a framework to establish a map into the world of Entrepreneurship. These are not new to the people who are already in the startup world but doing is what makes the change than just knowing. So it’s far better to start today than to regret it later.