Today we see many large companies, some operating at the national level and others international. What is sometimes hard to believe is that these businesses were once just an idea. What separates startup and established businesses is the time gap – the sequence of plans the startup is planning to execute in that specific time and the coming years.
The success of any startup is determined by the plan put in place. Before the business plan is put in place the startup has to observe the following.
1. Having the product/ service.
A startup should ensure it is offering the right product to the right market. This is a crucial stage, identifying the right product/ service because the product is the business. The manager of an entrepreneur should go through the product development process which consists of evaluating the business ideas, choosing the right one, testing the idea/product in the market and eventually commercialising the idea ( making the actual product).
2. Have a business plan.
Having a clear business plan will aid in day to day operations of the business. The business plans guide the manager to make the right decisions which is a step closer to achieving the goals and objectives which are stated in the business plan. Operating a business with a business is like being lead by a blind manager without an objective.
3. Marketing strategies.
For startups, the popularity among the customers is low and hence the main objective is to build awareness. Different marketing strategies can be used to penetrate the market. Awareness can be build using promotional tools like advertising, to let the customers know your product exists. Marketing is imperative for any business as it will enable the business to compete favourably as it grows.
4. Targeting the right market.
To make sure your business startup does not fail, target the right audience. Different products will be much demanded by certain segments of the market than others. Targeting the wrong market will lead the startup to its death, targeting the right market will increase the chances of success.
Common Pitfalls for Startups.
- Lack of information and experience.
For an entrepreneur in a specific industry to succeed, they must have the relevant knowledge about the sector, about the competitors and the opportunities. Having information is important. Experience in business is important for startups as it helps in steering the business in the right direction.
- Ignoring marketing.
Marketing has been an integral function of business since the earlier days. Failing to apply the right marketing strategies is a certain death for a startup if it is not a monopoly.
- Offering a product that does not solve the intended problem.
The existence of any business is to solve a problem and hence the startup should focus on solving consumer problems.