Hashinglife.com presents the secret to a successful startup. Not a secret, but a check-list. Read On!
You business idea is brilliant! You’re sure to conquer! Hold a sec! Have you done your research? Are you certain to hit the bull’s eye without the backup of thoroughly researched facts relevant to your dream business? There is a big gap between an entrepreneurial idea and its greatest achievement.
5 quick secrets to Successful Startup is research
Lack of an effective business model
This is the most common gap between a failed and a successful startup. Most startup ventures lose even before budding due to incoherent business model. Records of business failures show the glorified confidence of founders in acquiring customers overlooking the cost involved in it. Successful startups articulate methods to make the CAC (Cost of Acquiring Customer) less than the LTV (Lifetime Value of Customer). Right from the conceptual stage, they create a monetization strategy by analyzing the business environment and the market and convert first-time customers into repeat customers, thereby ensuring a perennial growth for the startup.
It is not easy for new projects to sail through smoothly due to a cornucopia of market problems. One needs to understand the actual size of the market for the specific product. The market study for a need-based product is different from a pleasure driven one. One also has to explore both the willingness and ability of customer in acquiring the product. Our SWOT analysis and market research not only reveals a clear picture of market potentials but also ensures the right time for the product launch
Smart marketing is the yardstick that determines whether an emerging entrepreneur gets nominated for the Best Entrepreneur Award for building a successful startup or sent back from where he or she came. Successful startups backup their marketing plans by a neutral source of information, apt questionnaires, and statistical facts. In short, make your campaigns successful by providing answers to how, where and when to pitch!
Lack of awareness of competitors
Without understanding the competitor’s strategy, the doom of a startup is but obvious. Research maestro conducts a detailed analysis of competitors encompassing their turnover figures, operations plans, marketing strategies, management summaries and so on. Pricing and discounts are crucial at the first stages. In a commoditized market, competition may tactically bleed you in a pricing war. Therefore, it is important to have a sense of your competitor’s risk-appetite and play so. Successful startups use research and results to overcome the strengths and capitalizing on the weaknesses of their contenders.
Running Out of Cash
This is one of the most common causes that pull down the shutters of startups. Despite sufficient funding, unessential spending can create a big hole in the cash-box of the founder. It is important to understand that in an early stage, conservation of cash is extremely significant until a set milestone arrive. Successful Startups draw financial plans, make annual projections and keep the cash flowing. They also curb expenditures, plan for contingencies, avoid risks and stick to costs that are essential.
You may not have a superb idea! But you need a well-researched business model, marketing plan, competitive strategy and cash-flow planning. And work your way to building a successful startup. All the Best!!