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Starting a new business at this time is not easy, but not impossible either. Entrepreneurship requires time, effort and resources. This is why you find many startups failing.
A recent study by Allmand Law revealed that 90% of startups fail. Only 10% do well. This is due to the fact that most entrepreneurs fail to prepare adequately before launching their startup business.
By failing to prepare, you prepare to fail. A startup that will be part of the 10% that do well needs adequate planning.
This is why you need the 5 steps below to succeed and keep your business afloat.
1. A viable business idea
To launch a successful startup, you need creative business ideas. These ideas must have a ready market for your product. It must be a niche that is profitable.
One of the reasons why startups fail is because of lack of a market need for products.
Ensure that the product idea you have is right for the market you want to enter.
Don’t waste your time searching for new ideas of product that has never been in existence before. Rather, choose from what is available and do it better or in a different way.
The fact is, entrepreneurs are not always innovators. They are people who take someone’s idea and use it differently.
For example, Sam Walton (Wal-Mart) sold the same thing that is available at any convenience store.
Once you have your idea ready, get your business plan together and start up the business quickly.
Many startups that took off slowly failed because they wallow in early development and found it hard to get off the ground. Therefore, don’t waste much time to take off.
When you have your idea ready ensure that:
- It solves a problem: People will only pay you if your product or service solves their problem. A business idea that will be successful must solve a problem for its target audience.
- It must have benefit and features: You must be able to identify the benefit and features of your product or service before you launch into the market. It shows you are meeting specific needs.
- Is it an already exciting idea?: If your product or service exists, what are the differentiating factors? If there is none, then you may have to change your idea.
- Resources for the business: Do you have the resources you need for the takeoff of the business? You will surely need money and time for a successful launch.
- What is the size of the market: How many people can benefit from your business idea? How many people will be ready to pay for it? This will help you to know the viability of your concept.
2. Don’t do it alone
Do you know that Venture capitals are more likely to invest in a startup that has a funding team? This is because if you cannot get other people to join you in the business, then your business idea may not be viable after all.
There are lots of benefits you can derive from co-founding, apart from investor support. They are: