From Silicon Valley to Bangalore, entrepreneurs are taking the plunge with new startups. But statistics show an ugly side of the hopeful business venture. A study shows that 90% of startups fail.
This isn’t to dishearten you, but to fuel your need to succeed. Instead of failure, we’ll focus on how to make your startup a success.
Successful startups consider:
- Solving an industry problem
- Mentorship guidance
Perseverance, mistakes and valuable lessons pave the way to startup success. Here’s how to make a startup.
Reflect on Your Tactics and Strategy
Before you bring your product to life, reflect on why you want to embark on this journey. Instead of money being the sole driving force, ask yourself:
- Why is this venture important?
- How can my product help others?
- Does this idea have the potential for success?
It’s essential to stay focused and passionate but entrepreneurs must also answer to a greater calling. Think about the business’s growth, its reputation and whether it’s trustworthy.
Having the right motivations will make your business reliable and relatable to consumers. This is the stage when you should be starting a business checklist to ensure the basics are covered before diving in.
Research the Current Market
A survey shows 42% of startups identified the “lack of a market need for their product” as the main issue for their failure.
So what makes a startup successful?
In-depth market analysis. Carrying this out will help you learn about your target audience and its pain points.
Startups should then create a minimal viable product (MVP) which is a prototype that has features to satisfy early customers. This gives you valuable feedback and you’ll see if your product is filling a gap in the market.
Put the Right Team in Place
Teamwork makes the dream work so aim to source the best talent in your niche.
Surround yourself with those who share your vision and ethos of your company. Working on your employer brand is essential so candidates know whether your startup is a good fit for them. And vice versa.
Plan Out Your Route
Take time to divide your journey into immediate, medium and long-term goals.
If there are any emerging technologies that may change your industry, stay ahead of the curve and use it. Or if your business idea isn’t new to your target audience focus on how to make your service cheaper, better and faster than your competition.
When you lay out your business’s path, set out long-term goals.
- Where do you want your business to be in a year?
- How many clients do you want to have?
- How much money should I invest in X here? (e.g. marketing budget)
Covering all ground is essential. Problems often arise when business owners focus on one area of the operation without synchronizing other elements of their startup.
Seek Help from a Mentor
Research shows that small businesses that receive mentoring achieve higher revenue and increased business growth.
Having a mentor in the same industry will help you understand the nuances of the business and improve your understanding of the market. Choose a mentor who is a fellow entrepreneur so they can offer you advice. They’ll have tips on perfecting your idea, how to raise money and overcome any obstacles
Don’t underestimate the power of networking. Your mentor could leverage their connections to get you access to early customer trials and potential investors. Plus, investors will be more comfortable investing in a startup through networking efforts.
Don’t get disheartened if competitors jump in with similar products. It means you’re onto something and this should encourage you to keep refining your product.
Absorb as much information as you can from industry experts and stay on top of industry trends. Sign up to Google Alerts for niche-related keywords and use the content to inspire new ideas or new ways to improve your product.
Watch Your Competitors
Keeping a close eye on your competitors can benefit you. For example, it can:
Forecast how competitors might respond to a new product or pricing strategy
Tells you their current and plans
Reveal your competitive advantages and disadvantages compared to others in the market
Follow several competitors to get a better understanding of their business strategy. To do this, focus on their current products, supply chain, and pricing.
Don’t Fixate on Mistakes
The learning curve for a startup is steep especially when there isn’t a set guidebook to follow. Prototyping, trial, and error are part of the process.
The best startup advice is to turn mistakes into learning opportunities. When you find the solution, it’ll boost your confidence, let you help others and prepare you for the next obstacle.
Mistakes are part of the growth and it’s vital you grow and adapt with your startup’s journey.
Startup Finance Tips
Be Patient: It’s tempting to take the first offer but you need to make sure the money comes with the right connections to help develop your business.
Never Take Money from Strangers: Get to know the investor partner as opposed to the firm alone. Consider the pros and cons to ensure you’ve made a wise choice.
Self-Fund If Possible: At least this way, if nothing comes out of your business efforts you can just walk away.
Avoid Venture Capital: Unless you absolutely need it, avoid. It can cost you a chunk of your company, many governance terms, and concessions and you’re tied to delivering liquidity to investors.
Have an Online Presence
According to research, 70% of consumers prefer getting to know a company via organic content than ads.
You should invest in a content marketing strategy that engages with your audience. Post unique content that helps solve your audience’s pain points. This will boost brand awareness, solidify you as an industry expert and build trust amongst your customers.
Use Social Media
Your website and social media platforms make up your online presence. Here, you can engage with your audience, communicate your brand’s message and identity. Be consistent and ensure all content you post is high-quality to maximize your growth.
A successful social media strategy means more lead generation, conversions and improves SEO.
Now You Know How to Make a Startup
No startup success stories are alike. It’s all part of a process where you can see how to make a startup. Find out which techniques work for you, which don’t and adjust accordingly. It’s essential to stay organized, optimize your workforce and consider your mistakes, lessons.