No entrepreneur starts a business with the intention to fail. Yet, a very few entrepreneurs have what it takes to build a successful business. Most startup dies in their infancy either because the ideas are dysfunctional or the founders are not committed enough to build a startup that succeeds.
Even the entrepreneurs that last long enough to see their product out in the market with paying customers can easily get overwhelmed with the tiring tirade of challenges and roadblocks.
Turning an idea into a money-making solution is a feeling worth every sleepless night. But, how many of those nights you are willing to take? Therefore, here are some tips to pave your way to a successful startup before you run out of ideas and energy.
Fix a problem that you yourself have experienced
As James Beshara rightly says, “Build a company around a problem that you yourself have”. Most entrepreneurs make a known mistake of repeating a product or a service already popular in the market and that too with very little variation. Also, failing to identify and familiarize oneself with the problem, for which they promise a solution through their product, is yet another blunder on an entrepreneur’s part.
Having a familiar problem makes it easier for them to design a solution for it uniquely and ergonomically. Thus, if you are a budding entrepreneur looking for a startup idea, start by penning down a list of 15-20 problems in life that you personally have suffered with. Rank them according to which made you suffer the most. Pick one and design an ergonomic and innovative solution to that problem and voila! You have a product that is unique and has less or no competitors in the market.
Why build a company around a problem you have?
Familiarity is important because once you have familiarity with the problem it will help you design a solution keeping in mind all pain points which you experienced. You’ll have knowledge of existing solutions and why they failed in the past or weren’t as effective in the past. You would also understand the dynamics of the problem much better given the first-hand experience you have.
Another advantage of familiarity with the problem is that you know the target crowd and demographics much better than everybody else. Which age group, gender, the locality would require what helps you design a much more efficient solution.
Sooner the launch of your startup, the better
When launching your company, develop a timeline that has a quicker launch than anticipated by the audience. This is because, owning a business and that too, a startup, is a dynamic and thoughtful idea. When you introduce a new product in the market you can only predict what the customer wants and that too, vaguely.
Launching early can help you get feedback from clients which will further help you make adjustments to improve your product.
Recruit an efficient and passionate team
Once the company is up and running, the next step to work on is hiring. First hires not only have to be competent and hardworking but also passionate about solving the problem. While you might be chomping at the bit to get some more talent on your team, money is typically tight for startup, so it is important not to rush through the process. You want to hire slowly and vet your candidates thoroughly.
Also, remember the best way to hire new employees is through word of mouth and references. So make sure your company has a lucrative referral policy in place.
Plan ahead
As a founder or executive, 25% of what you’re thinking about should be the current state of the company while 75% should be focused 90 days out and beyond. The managers in the company should be thinking 50% present and 50% future and the employees in the company should be thinking 75% present and 25% future.
This planning strategy has been found successful with many startup enterprises and it ensures proper movement of ideas and focus amongst the employees and employers.
Delegate work
At a certain point, your company will grow to a point where you alone won’t be able to manage everything on your own. That’s where delegation comes in.
If you’re too much of a control freak, you’ll limit the growth of your company by not being able to trust your work to others. When you delegate, you might not get 100% of the results you wish for, but you will get 90% of the results with only 5% of the work which is an excellent trade-off.
Take calculated risks
When you finally decide to execute your startup idea, just deciding to start can feel like a risky decision. This is before even investing any money or even planning anything. This is because with a startup a lot is at stake and less or no returns are devastating. The relationship between risk and return is crystal clear. If you don’t take risks, you will have to settle for mediocre to no returns.
Smart entrepreneurs take calculated risks. If you choose to have a website or mobile application for your startup business, it is a risk that you take but focusing on the current trend and the needs of your industry you ought to have one. Focusing on industries you’re familiar with, starting opportunity-driven ventures, and seeking mentorship will help you take calculated risks.
That being said, building a business from scratch is always exciting. Successful or not, you will surely learn a lot from owning a startup. From managing, capital, a team, and a full-fledged business will give you lifelong experience if nothing else.
