All over the world, people have glorified taking risks. They say entrepreneur jumps off a cliff and builds a plane when going down. They don’t tell you that 90% startups fail. The main reason for failure is that you cannot simply jump into things. To succeed you will have to do some planning in advance.
When in high school, we planned to get into a good college. Unless one is really lucky, they can’t do MBA from a top institute without preparing for the entrance exam. Likewise, to get rich we have to plan our finances, so that they give maximum returns. Buying a house also requires planning, based on where we’ll be in the future. So why not plan for startups as well?
These are a few aspects you should keep in mind when planning to build your startup.
Do something you can do
You need 3 things for that – skill, commitment and execution. Skill means, if you want a bitcoin-based entity, then either have the skill to make it, or recruit someone competent with considerable experience in it.
Commitment means, there’ll be all kinds of days, good and bad. Patience is the biggest asset for an entrepreneur. You need to be absolutely committed to make it a success.
Execution means, an idea alone won’t do. You need to make it work. It’s like, you can’t simply say that read this book and get a GRE score. You’ll have to read that book actually and score well in the exam.
Build something that will fetch money
If you give something for free, then many people will take it. For a successful business, you need to have something people will pay for. How do you know this will happen? Build a prototype and show it to people, who match your target profile. Like if you’re making an education app for grade 9 students, then show them a generic demo. Next, take them to a sign-up page where they can enter their contact details and they’ll be notified on launch. So, if they would want to purchase it, take pre-orders from them. Don’t fall into the trap that if you like it then so will other people. In fact, you will have to reach out to the target audience and understand if they’ll pay you money for this.
Think of how you’ll acquire customers
“Build education app for Indian school kids and if you capture 2% of the population then you’ll be in profits”. Such things sound good in academics. It may get you marks in college but in the real world you need to think of ways to acquire customers. Word of mouth does the best, if your product is solid then people will surely come to you. Also, you will have to do things like partner tie-ups, cashback offers, attractive schemes, etc.
Be practical in your approach
Don’t reinvent the wheel every time. Think that you’re solving a problem for actual users. One of our clients makes it easy for people to avail legal services online. Earlier, people had to go to courts and find someone, now they have it all from the comfort of their home. Make sure whatever you’re doing is something you can do yourself. Are you making a technology version of an existing business and can’t make the IT part yourself? If yes, then avail the services of a reputed IT vendor.
In the end, remember that even though 90% startups fail, 10% do succeed. With proper planning, you can definitely increase your chances of success.