Not Sure Which Business To Start? Some Quick Tips!

Starting a new business might look like a challenging task and may even hinder your capacity to think rationally. Lot of start-ups fail in the market as they get misled by misinformation and by the fact that “there are other competitors out there and their products have a demand and new products fail due their limited capacity to target the customers”.

According to a study, nine out of ten startups will fail. This is a hard and bleak truth, but one that you’d do well to meditate on. Entrepreneurs may even want to write their failure post-mortem before they launch their business.

Why? Because very optimistic entrepreneur needs a dose of reality now and then. Cold statistics like these are not intended to discourage entrepreneurs, but to encourage them to work smarter and harder.

Some hopeful entrepreneurs even struggle which business to choose and how to plan the strategy to cater to the demand of customers. You have to remember that “customer is the king”. Choosing your business wisely depends upon the fact that your business should have enough financial resources and manpower to cater to the demands of customers. Happy customer will always share the experience with others and this way your business will grow.

Think of any big business. They all started with little investment. Its important for any business to understand how it will benefit people and will it be able to satisfy their needs and demands. Every business has its own target group of people and it should be kept in mind that business model is successful only when your product or service sells in the market and achieves a desired goal.

Before starting a new business, market survey should be done painstakingly to know the different products and their uses. Your product should not be similar, but it should stand out in the crowd and should have more features. Think of iphone. It rules the smartphone market. The reason is that it offers wide range of features. Similarly your product should have enough features to entice customers to buy it.

What are the qualities of new businesses that succeed?

There are a lot of qualities of fruitful new companies. My objective isn’t to show them for you, but instead to bring up the absolute most noteworthy reasons for progress.

1. The item is ideal for the market

Fortune reported the “top reason” that startups fail: “They make products no one wants.” A careful survey of failed startups determined that 42% of them identified the “lack of a market need for their product” as the single biggest reason for their failure.

If you’re going to spend your time making a product, then spend your time making sure it’s the right product for the right market.

2. The business person does not overlook anything.

After their company folded, Dijiwan’s leaders wrote this:

A good product idea and a strong technical team are not a guarantee of a sustainable business. One should not ignore the business process and issues of a company because it is not their job. It can eventually deprive them from any future in that company.

Ouch. They had a great product. They had a strong team. What did they lack?

An under-the-hood look at Dijiwan makes it clear. They overlooked key aspects of business process and the “boring stuff.” The CEO thinks, “It’s my job to lead.” The CMO thinks, “It’s my job to market.” The lead developer thinks, “It’s my job to code.”

But a startup can’t segment its responsibilities like that. Things are far more organic in a startup, meaning that roles and responsibilities will overlap. Small things can turn into large things. Some of the most important components of a startup are those pesky issues of business process, business model, and scalability.

Successful entrepreneurs understand that they must work on their business, not in their business. Getting caught up in the minutiae of presentations, phone calls, meetings, and emails can distract the entrepreneur from the heart of the business.

3. The organization develops quick.

Who says that fast growth is unsustainable? And who even cares?

Growth — fast growth — is what entrepreneurs crave, investors need, and markets want. Rapid growth is the sign of a great idea in a hot market.

The founders of Wantful (inactive), confessed that they did not accomplish “highly accelerated growth required to secure later-stage venture capital.” They needed funding, but when the company didn’t grow fast enough, they weren’t eligible to secure more funding. That was the beginning of the end.

Growth leads to more growth, which leads to even more growth. A startup should not be satisfied with marginal single-digit growth rates after many months of operating. If the growth doesn’t happen after a certain amount of time, then the growth will not happen. A company that is not growing is shrinking.

The second major reason why startups fail is that they “ran out of cash.” Why did they run out of cash? Because they didn’t grow fast enough. If your startup can grow fast, you can effectively bypass some of the biggest startup killers — losing to the competition, losing customers, losing personnel, and losing passion.

Rapid growth early on is a sure sign of future success.

4. The team knows how to recoup.

Every startup is backed by a team of people. The more versatile that team, the better chance they have of succeeding.

“Versatility” is often viewed in a limited sense, that of possessing more than one skill or talent. Versatility in the startup environment involves much more than someone’s skillset. It involves mindset. Startup teams must possess the ability to change products, adjust to different compensation plans, take up a new marketing approach, shift industries, rebrand the business, or even tear down a business and start all over again.

It’s all about recovering from blows. Teams that are able to recover together, also possess the unique trait of harmoniously working together through tough times.

I’ve also noticed that startups with co-founders have a higher success rate than companies with a single founder. Having a cofounder creates a partnership. There’s much more accountability, which helps you to avoid some of the pitfalls of a single charismatic leader. Plus, a cofounder will have skills that you don’t have.

Conclusion

If your startup lasts, you’re lucky. You’ve been able to do something that 90% of new businesses haven’t.

Even though there’s a lot of luck involved in the success stories like Google and Facebook, there are more humble reasons why other startups succeed. They have a product that meets a need, they don’t ignore anything, they grow fast, and they recover from the hard-knock startup life.

If you’ve got these four characteristics, then you’re setting yourself up for major success.

For more information on how to start a business, book your Free Consultation Today!

Leave a Reply

how can we help you?

Contact us on (03)8764 6281 or submit your  inquiry online.

Subscribe

Receive updates and latest blogs direct into your email:




Looking for a First-Class Business Plan Consultant?