Nowadays, there are so many startups out there that launching a company of your own may seem like a simple thing to do. Nonetheless, the fact remains that 95 percent of these startups result in a failure, which only means that while launching is easy, launching properly is everything but.
The reasons for this are different but all failed startups have several things in common. With that in mind, there are six tips that you should consider, regardless of the industry you are in.
Validate your idea
The first test you’ll have to pass as an entrepreneur is the one regarding the validity of your business idea. Coming up with a business project can sometimes resemble spending hours in a musky room – you’ll be the only one who can’t notice the smell.
Therefore, you need a scientific approach to the validation of your idea. This means that if you ask someone for an opinion, it shouldn’t be your family and friends, seeing as how these people have a direct emotional incentive to be supportive,
even when they shouldn’t be. Next, try putting things on paper, taking a couple of days and then re-visiting this topic.
Find an existing market
One of the mistakes that a lot of entrepreneurs make is believing that starting a new market is always better than penetrating an existing one. The only reason why they feel so is due to the fact that they fear the competition. What they fail to see is the way in which competition can help them pave the way.
They prepare the market for the product, develop and discover some of the most efficient business practices and give your audience a reference point to compare and evaluate you to. A superb offer simply isn’t that superb if there isn’t something inferior out there to stand next to it.
Make a business plan
An idea on its own doesn’t amount to much. A business model can’t operate on an idea and even the most extraordinary of ideas won’t be enough to provide you with investors. Every single investor will want to know about the execution before they agree to commit their resources in order to help you launch your startup.
This is why you need to learn how to make a business plan. Before you start, you should also consider the primary objective of this plan. If it’s to attract investors, you need to adjust jargon, terms and voice to the audience. On the other hand, some people make a business plan in order to make their own business itinerary, in which case you should probably personalize it a bit more.
Build an identity
In order to become more appealing to potential investors, employees and clients, your business needs to assume an identity of its own. So, when choosing corporate markings, make sure to make it all about credibility and reliability.
When choosing corporate colors, pick something elegant, as well as something that will go well with your logo. When picking an URL for your homepage, make sure to read it out loud in order to avoid it coming off as unintentionally inappropriate. Finally, when installing a landline, try to acquire some kind of “virtual business numbers” like 1300 numbers in order to appear more professional.
Don’t hire friends
In the previous section, we dismissed the idea of asking friends and family members for an opinion about your business idea and now, we’re prepared to speak against them once again. Keep in mind that people close to you might be crucial in your ability to make it in the open market, however, they need to do so in your private life, not in your business dealings.
They need to assume the role of love and support, as well as provide you with an opportunity to get an exhaust vent, every now and then. As employees, there’s always room for favoritism and a probability that your personal relationship (the one you nurtured over years and decades) will suffer.
Don’t take unnecessary risks
At the very end, you need to abandon the idea of getting rich overnight altogether. Your primary objective should be reaching that break-even point or at least putting yourself in a situation where you can start generating profit. Keep in mind that there are no shortcuts in the business world, seeing as how even a rapid and uncontrolled growth might end up being quite troublesome.
Every time you have to make a risky decision try to imagine the worst-case scenario and ask yourself – can my business endure such a blow? Honesty towards yourself is crucial for every single entrepreneur out there.
To some, it may seem as if we were too quick to dismiss the importance of the right business idea or the support of your community. Without an idea, there is no business, without emotional support there’s no entrepreneurial spirit. Still, if these two things alone were enough, everyone would be a millionaire.
Like so many other things, ideas and support are resources, which some people tend to use better than others. At the end of the day, this is what it all comes down to.