Starting a New Business – 10 Rules for Success
Even though it might seem like the right time and seems fashionable to start up a new business there are some considerations which need to be taken note of. Even the best idea and most motivated entrepreneur can fail, if for example the business idea is not well researched, or if the market is too small or restricted.
There are 10 basic rules to follow which will help you analyze if a supposedly good idea, is really so. This list is a good check list for anyone who wishes to evaluate if their business idea is really a good one, right from the very first step of the startup process.
1. Are you passionate enough about your idea?
Every entrepreneurial journey must start with passion. Money is no substitute for passion. In fact, this first rule is one of the founding rules of success. It is also recommended that if money is the motivator for startup idea then its better to stop just right now.
There are two reasons for this:
a. Times will get tough… when the initial honeymoon period ends then tough issues need to be tackled. Unless you see yourself working at the same business in 5, 10 or even 15 years, then passion is not the motivator. When things get tough, the likelihood of seeing things through are minimal.
b. If you are not passionate about your business, other people will start seeing right through you. Customers, investors and even the press will feel the unease and will not engage with you or your business.
2. It’s Simple – Focus!
We often hear the phrase “think big” even from the start of a new entrepreneurial journey. Its true, every entrepreneur should think big, because in many cases, if the mindset is on a small project, then the ambitions will remain small. However, it is wrong to think that from the very beginning, then new entrepreneurs have to be big from the Day 1. You are not born with big ideas, they grow on you. All great businesses have started with just one simple idea, then developed and nurtured it until it grew. You can solve by solving one problem, focusing on one customer and you will be sufficiently focused on building the foundations for success.
3. One Revenue Stream
More often than not, many early stage entrepreneurs think that the more revenue streams their idea can support, them the better the chances of survival. Most especially in the early phase, you need to be 100% focused on one revenue stream. Your idea needs to have a clear revenue stream, which is large enough to support your idea. If it isn’t, then its best to go back to the drawing board.
4. Few Steps to Revenue
Simplify the process to start the revenue-earning process. The more steps you have to take to start earning revenue, the more complex an idea is to build out and execute. During the initial planning stages, you need to ask yourself this simple question “how many steps do I need to take before earning the first Euro? Try to limit the steps to just around three. The less steps, then the faster you can start seeing a return on your startup idea.
5. Know Your Customer as well as you know the back of your hand
Without a customer, then there is no need for your startup idea. You need to clearly know who you are helping, and what exactly they need, why they need it, when they need it, what actions they are prepared to make to solve their pain point, and what they are willing to spend their money on. You also need to know what their own person agendas are, as well as what goals they have in life. In other words, you need to know your customer almost as much as you know yourself!
Very often, we can all make this fatal mistake of not taking the time and effort to get to know our customer deeply enough. Often, we might describe the customer as being a generic form. However, this will lack of customer insight will lead to eventual failure. You need to be able to split the market into specific segments, so as to then target this segment with exact precision.
6. Know your market
Whether you wish to acknowledge it or not, it is almost likely that there are already several people devoting their lives to a project very similar to your idea. But in order to win at this, you need to engulf yourself in the market to obtain as many insights and long term vision, as possible. This can be done either by working in the market, living the problem your idea will solve, and/or devoting a lot of time to research. If you are not an expert in this, then outsource this part of your startup journey let us help you. This step in your journey is vital.
7. Is the market size sufficiently large?
You need to make sure that your idea will fit nicely in a sufficiently large market. It is a known fact that fast-growing markets have the power to help grow even the most mediocre company into grandeur, and a good company into a dying chamber if the marketing is shrinking. If you are going to dedicate all your life and devote your passion to it, then you’d better make sure that the market is large enough, or growing at a fast rate to support your idea and it make it meaningful and long term.
8. Original Strategic Plan
Every great business has a secret weapon. Of course, not every great company will be born with this secret weapon in hand, though it must have build one along the way.. This is where a strategic plan comes extremely important. Starting a startup without a plan, especially on how you will differentiate from the rest of the players in the market and win, then is extremely shortsighted and foolish. The plan needs to be original. If the plan looks obvious, then this will most likely lead to failure, as your idea can be replicate by any other competitor.
Is being strategic and thinking long term on a 1/3/5 year span too much for you? We can help you prepare your strategic plan.
9. You have tried to kill your idea
Your idea is your baby, and you are in love with it. Sometimes, this blinded love can lead you to failure as you won’t have the ability to see the idea objectively. Kill it! Start being objective and thing of all the negatives. When you have almost given up o the idea, then start re-building the idea bit-by-bit, eliminating all the negative aspects of the idea. The end result will be a much firmer foundation on which to start and build your company.
10. Share your idea!
Start talking about your idea to anyone and everyone who will listen. Don’t keep it to yourself, share, share and share again. When you start receiving feedback, then you can start tweaking your idea to perfect it. Seek out feedback as it is your very best friend. In the past, communicating an idea could only be done by using off-line, traditional and more expensive channels. Today, things are a bit different. Advertising and general communication is much more accessible. Social Media is accessible to everyone and anyone. You just need to have the knowledge of how to make it work for you. It is advisable that you must be consistent, present, reliable and accessible on social media in order to be effective. If you do not have the time, expertise or patience, then we can help you.