You are not alone if you have considered leaving your 9 to 5 desk job and ride off in the ever-growing ocean of start-up businesses. But have you thought of these 10 aspects and how can they make or break your business idea?
Have a Great Business Idea
There is a thin line between a good business idea and a great business idea. A great business idea offers a necessary solution to an existing problem rather than a luxury solution.
Case: ZoomCar, Revv – these brands started a good idea of getting people to rent a car on their own for short or daily commutes.Now they have evolved their good idea into a great one by introducing subscription plans so that you can actually buy a car for your periodic use without any hassles of ownership and even without paying the full amount.
Communicate your Idea
Make people understand how your product will impact their lives and make it better. Do not leave any stone unturned or any question unanswered. Anticipate the doubts and take steps to clear them.
Case: General Motors wanted to launch their popular Car ‘Nova’ in Latin America. But the name ‘Nova’ literally translated to ‘No-Go’ in Spanish. Hence the launch program of Nova was very well communicated in its local language and thus encouraging more and more buyers making the car one of the best sellers in Latin America.
Research your Market
Market research is not just studying the costing and financial dynamics of your market. It is what products are overflowing in the market and what new can be added pertaining to the current or similar trends.
Case:WWF – World Wildlife Federation runs its websites across various countries but changes it according the users. In India it shows tigers and their endangered status, whereas in Americas it shows the bears and other big cats. The Chinese iteration focuses on Red Pandas thus making it exclusive for the targeted market.
Customers and Clients
Your customers are what will decide the fate of your product and hence it is better not to displease them. It is of utmost importance to study your target audience and getting to know their requirements, buying trends and cost inclinations.
Case:Google in 2016, launched its ‘Year in Search’ – what people searched the most in the year. Top results were Brexit, Trump’s election, Syria and Orlando Shootings. Seeing these as a group of emotionally low results, Google talked to the masses directly and campaigned for its search engine by introducing the tag line, “Love is out there, keep searching.”
Sticking to a budget is the first concrete step of getting your idea to work. Plan how much do you require, why you require, who will provide that? Do you want to be funded by venture capitalists or raise a public funding, or will your savings suffice your expenses and living costs?
Case: Companies like MailChimp, BrainTree just provided a solution to the existing problems and charged for it; currently valued at 400 Million and 800 million USD respectively.
Do you have what it takes to run a successful enterprise? Ponder over your skills, take courses, enhance your capabilities, or if you want, hire partners with appropriate skills or expertise. Decide on how you want to share the dividends and with whom?
Case:Berkshire Hathaway has always had non founding managers running the company.Big Indian startups like Flipkart, Ola, Zivame all have CEOs who were not the founders of the company. And these top changes have pushed the companies for even higher success.
Hire people who work for you and assess them constantly, keep probation periods. Legal experts to work on various laws, permits and licenses, Accountants for your money management are easily available and take up less money for more work done.
Case:BYJU’S is one of the most aggressive hiring start-ups in recent memory. Attractive packages, flexible, challenging and growing work culture led them to create a huge team and become more efficient.
Branding is the aspect which makes your brand recognized and one of the most potent tools for that is Logo. A logo is what makes your company identifiable and memorable. It is generally an emblem or a symbol. It can be an abstract or a figurative representation of your field of work. It reflects your ideologyand should connect to the masses.
Case: Nike’s‘swoosh’ logo is the most recognized logo worldwide. It depicts the company ideology of motion and inspiration through its upward writing pattern, a sense
of unity and equality by the black colour and victory since it is a shadow of wings of Goddess of Victory – Nike.
Location and Facilities
Real estate is one of the most expensive commodities today. Hence decide on whether your work can be done from your home? Or do you need a special office or warehouse? You can also look for shared work spaces which offer a desk and a meeting room and are available at cheap prices.
Case:Harley Davidson Motorcycles, Amazon, Google, Lotus Cars all are greatest examples of startups running from garages since they did not need to rent a place and save money to what they needed to do.
Creating and Starting your own business is definitely a special thing to do, but even more tedious is keeping it running. Work out your supply channels,branding partner logistic partners, vendors and anticipate market demand.
Case: Progressive Insurance, an automobile insurance company based in USA, had sales of $1.3 billion in 1991. However, by 2002, they reached $9.5 billion. It is recorded as one of the fastest growth in one of the slowest growing sectors. It was a direct result of operational innovation. By low costs and better services, Progressive Insurance outsold all their competition by just performing better.
There are innumerable examples of startups tanking or soaring depending upon what they chose to attend and what to ignore. What do you choose??