Are you planning to start your own business? That’s great. Most of the people are shifting from jobs to start-ups. And why not, when you can grow and make your own money. But life is not that easy as an entrepreneur. You need entrepreneurial skills and a good idea to start up. But apart from these, you need to consider six major points before you start your business. The major 6 points are
- Understand the market and customers
- Start small, nail it and then make it big
- Make your own USP
- Consider keeping a mentor
- Flexible and dynamic
- Effective Team
1. Proper market research is essential
It is impossible to be the king in the market without knowing your potential market, nature, and the market properly. Good market research is a must to perform better in a particular industry. The recent biggest disaster was the Nano launch by Maruti. It was launched considering the low purchasing power of the middle-class market. But surprisingly, it turned out to be a disaster as their initial selling point that was the cheapest car ever, backfired.
People started thinking that buying the cheapest car was to acquire a status of “low social status.” This led to a major decline in sales of the car from 72,527 in 2012 to 15,772 in 2016. This was the result of the inadequate market result. So before entering any industry, make sure you know about the market and its nature.
2. Start small, nail it and then make it big
We’re not the one to say this line. Ritesh Aggarwal, the founder of Oyo, quoted this line, trying to enlighten every entrepreneur that they should start small and have big dreams. They should keep a big vision and a plan to reach there. Putting on huge investments and workforce in the starting phase may lead to an increase in liabilities and losses and eventually leading the entrepreneur to quit in most of the cases.
One of the great examples is Flipkart, founded by the Bansal brothers. They started their business by selling books online.
Today its market value is around $20 billion.
3. Make your own USP
Whether you are starting big or small, making USP is really necessary. There are a lot of businesses sailing in the big market. How will your startup stand out from others? How are you going to make it unique? That’s where USP comes to action.
The best example of this is Dominos. When you have so much to eat, why will you eat dominos? In 2007, Dominos introduced a new slogan, “You got 30 mins,” that came as a guarantee that the pizza will be delivered under 30 mins. It surely created heat about this unique dominos USP, and they got the benefit of that as the sale increased.
4. Consider keeping an overall mentor
As you are starting up, you don’t have much experience in the market strategies, nature, and fluctuations. Consider keeping one mentor before you start up who can guide you at every step. Keeping a mentor by your side will help you to
- Take better decisions for the company
- Handle the bad situations in a better way
- Correct mistakes that you’ll make
- Identify growth points
And much more.
According to Forbes, 92 percent of small businesses think that their mentors have a direct impact on their company’s growth and survival. So, keeping a mentor now is much better than thinking that you should have kept him or her when the situation will be already bad later.
5. Flexible and Dynamic
What makes you keep going in the market? What ensures your survival in the long run? Your startup being dynamic and flexible. It is totally visible that the market environment is changing rapidly with new challenges and threats. Being dynamic and flexible is the key to survival in the market.
Let’s take Nokia as an example; they resisted change and didn’t choose Android. Later their decision cost them a huge loss, and eventually, they got off the market.
Even the most popular social media platforms have to change themselves in order to maintain their position. Like Facebook, the biggest social media platform has to make regular updates to keep the users engaged in their application. So obviously nobody loves to leave their comfort zone, but it is necessary for survival.
6. Effective and Efficient Team
“Alone, we can do so little; together, we can do so much.”. This line by Hellen Keller expresses that no company has ever reached the top without their team efforts. An efficient and effective team is the difference between success and failure. It is really important to find self-motivated employees who work for the company as dedicatedly as you do. If your team isn’t that effective and efficient, you might never be able to grow in the market and may quit soon.
It is important for you to help and motivate your employees, as well. Your work is to keep your employees satisfied so that it leads to better performance.