Hurray!
You have made an excellent product. Congratulations!
You have put your heart and soul for the last few months (or years) to bring the product to the market. Nonetheless, after a few months of launch, have you noticed that the sales are not happening as you projected? Similarly, when you pitched your product in front of investors, have you felt that they are not at all convinced?
Then, you would presumably be in a situation where you could not fathom out the missteps you have taken. Missteps? Where could be those steps occurred? Here are four things all entrepreneurs should do before venturing into business.
1. Validated your idea/product?
The first and foremost task is to determine the market desirability and market demand. Every entrepreneur is excited about their product. Still, you have to make sure that the market is also as enthusiastic about the product as you are. You have to get a preliminary indication of how your most likely customers will respond to the product or service offering. For that, do a Concept Statement Test among 5 to 10 people and a Buying Intention Survey among 15 to 30 people. It is also crucial to do an assessment on Industry Attractiveness, Target Market Attractiveness, and Market Timeliness.
2. Created the right team?
The team should consist of a technical leader and a sales oriented entrepreneur. This is a requisite for every startup to be successful. Most startup founders are either technical leaders or product experts. Their business experience will be near to zero. An entrepreneur will have a clear sense of the opportunity and know-how to build a business.
A startup team should always depend on data to determine whether they are in the right direction. They should be willing to reexamine their assumptions and pivot if they are heading in the wrong direction. You should never become overcommitted to a particular idea.
3. Do you know the market?
Understanding the market opportunity is an essential factor in order to make your business attractive to investors. A fast-growing sector allows you to gain a considerable amount of market share at a much faster pace. Likewise, the huge market size can help you to carve out a portion of the market share without much effort. Always try to create a competitive edge that is long-lasting by devising a unique business model or technology. Lastly, make sure the timing of your market entry is appropriate. Being too early or late can actually hurt your financials very badly.
4. Is it the right location?
Even in the age of digitalization and globalization, the location factor can actually make or break your startup. Ease of getting investment, good quality resources, and exposure has a huge impact on your success. Choose cities that have an eco-system to support startups, to where people are willing to relocate. This would act as a great advantage when your startup reaches the stage of scaling up.
Failing fast is the best thing that can happen to you as an entrepreneur. More than 90% of startups realize their mistakes only after spending a significant amount of money and time. Hence doing a thorough exercise before venturing on an idea will surely help you from falling into potential pitfalls.
Remember, You are not defined by your past , You are prepared by your Past – Nozer Buchia
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