COVID-19 has plunged the global economy into a now inevitable recession. Businesses of all sizes have been impacted, but startups and small to medium-sized businesses are suffering the most.
A number of things need to be considered before plunging into a start-up business. lots of factors come into play for the smooth running of a business. The first thing you need to know is that starting a business is similar to driving a car through heavy fog where you can’t see anything except a few feet in front of your windshield. So, one wrong decision can lead you in the wrong direction. In this blog, you will know all the things about how to start a new business in this pandemic time & how we will stand with you from scratch to deployment because we don’t just shake hands; we hold them.
Things that need to be considered before diving into the business
If you have a startup or are planning on starting one, it’s important that you consider some factors that can make or break your startup. The success of a business depends on several factors that we will discuss in this blog. Not all businesses succeed. But the ones that do have these in common.
Here are some factors to consider before starting a business:
Your Business Idea
Your business idea for your startup is going to be the focus of your startup. What does your startup do? What makes your startup different? What problems does your startup solve? Why did you start your startup?
It’s important that you always keep in mind your business idea and the crux of it. If your idea is able to answer the above questions gracefully then it becomes your first step towards a successful venture. This is also to remind yourself to never lose focus on the idea and why you started your startup. There will be more startups or businesses that offer the same products or services like yours, and that is why it is important to focus on what makes your business different.
Quality over Quantity
Always remember quality is more important than quantity. As a startup owner, you start focusing on the numbers you generate. The number of sign-ups, or walk-ins or followers on social media. But what you must remember is that at this stage of your business, it is more important that you accumulate quality and relevant customers or users, instead of quantitative but irrelevant customers or users.
Focusing on quality will make sure that your business is moving in the right direction. This is also going to make your startup more relevant to the right people in the future as you will have more chances of better reviews and more referrals. Focus on quality, and the quantity will come with time.
Have a Backup Plan
It’s a good idea to have a backup plan for everything you do. Don’t keep your eyes off plan A, but have a plan B in case things don’t go as planned.
The same goes for your startup. You may have a business model in place and may have outlined your products, service, marketing plan, etc. But with startups, there is always a risk of failure. A lot of times, startups fail to gauge the demand in the market, or do not carry out thorough market research; which is why it is a good idea to have a backup plan.
Know your Opportunities and Challenges
“Success and learning are two sides of the same coin”.
As a startup owner, you should be well aware of the opportunities and challenges that your business is faced with currently, and what lies ahead. If you can identify opportunities and act on them, it can have a huge benefit for your startup.
Challenges are what makes your business better. In the initial stages of starting your business, you are bound to face challenges and obstacles. But as your business grows, you will find a way to manage and tackle these challenges, as a result of which you will improve your business.
Know the Market’s Needs
Before you dive into starting your startup, think about your business idea again. Is there a need for the product or service you are about to offer?
Understanding the market demands and needs has become the key factor post-pandemic and an important factor in deciding whether to start a startup. If there is no need for your product or service in the market you are targeting, your startup simply will not take off.
On the other hand, if you do your market research well and understand exactly what is needed in the market, your products or services have better chances of being in demand. MVP is becoming more and more relevant nowadays considering the cloud of uncertainty that exists in every business today. It is always better to get your idea tested in the real world other than basing it on whimsical statistics and blogs.
Know your Budget and Expenses
Do you have the funds and resources to start a startup?
As a business owner, you need to be well versed with the budget that you can allocate for setting up your startup. It is important to prioritize activities and tasks that need to be done. Once this is done, a certain budget needs to be allocated to these tasks.
One of the biggest problems that startups face is in bifurcating their funds. They are like most young adults with their salaries. They spend too much on development and when it comes to post-development expenses they are barely left with anything.
The entire budget needs to be divided into four i.e. 30% in development, 30% in research, 30% in marketing, and 10% as a buffer or emergency money are how most successful startups divide their budget.
You should always be familiar with the kind of expenses your startup is likely to incur once it starts. Another good idea is to rope in somebody who can help you estimate these figures.
Analyze your Strength
Last but not the least, focus on your strengths. Analyze your resources and leverage them. If you can compile all your assets, skills, resources and strengths and put them towards achieving a goal – rest assured, you will experience success.
How does Archisys help startups to reach their goal? (From baby steps to a 1000 meters marathon we got your back.)
A startup without a story is bound to fail no matter what. People do not buy products but stories. If your story fits their narrative, then your product is going to succeed. This story of your will find an audience of its own and that audience will be the beginning of your brand. They will not only buy your idea but will also drive more such people in. Your app needs to covey the same story effectively through its experience and that’s why UX (User Experience) plays an equally major role as that of building the app and marketing it.
How do we know all of these? Through experience and continuous training. Our resources have the habit of reading about the progress in their respective fields on a regular basis in order to give you the best service possible.
Our step by step solutions for startups & entrepreneurs
- Understanding: The Idea and the Story
Before we accept your proposal, we would need to understand your idea & the story behind it. We take the time to consider your options and research the market. Getting informed before the very beginning will help us understand how things work in the business world. It’s always better to back your decisions with information and valid data than it is to follow your gut and improvise. Market research can help us determine if your business idea is good & problem solving or not.
Many entrepreneurs neglect this step only to end up in serious problems with their business. Many startup businesses fail due to lack of market knowledge. So we are here to help you with the research & to let you know the ways in which you can shape your ideas to fit the market needs.
- Creating your User Story
User stories are short, simple descriptions of a feature told from the perspective of the person who desires the new capability, usually a user or customer of the system. It is a part of an agile approach that helps shift the focus from writing about requirements to talking about them. All agile user stories include a written sentence or two and, more importantly, a series of conversations about the desired functionality.
- The MVP (minimum viable product)
MVP is the first target version of your dream product. They consume less time & less cost. When the marketing research of your idea is complete and it comes to know that your idea is worthy. Then we create an MVP to test it, which shows how different and useful your idea is in the market. You need to make sure what your target customer is exactly looking for. It is better to postpone extra features and add it after the MVP becomes a success.
- Real-time Testing
The next step after MVP is released to the market is to start collecting data. Testing for MVP, how it’s working in the market & how many customers like it or not. This is important because the decisions of the customers will help you to break or make the feature of the product (final product). The experience of the customer with your MVP is one of the best indicators of what features might form the next step after MVP.
- Post-deployment Nurturing
After the deployment of your MVP, there are other things that you will have to work on. MVP provides real feedback from your users every day and we are here to ensure that all of these points are noted down, curated and then worked upon to form a final product that your customers will be proud of.
The digital world is a battlefield and just as the theory of evolution states; only the fittest survive. We are here to make sure that your app stays fit enough to compete as well.
Why do many startups fail after the initial days of survival?
Well, you already know the points that you need to consider in order to take off and survive. Let’s take a look at the blind-turns as well. These points will remind you to look out for red cards. Here we go:
Too many people try to start a business targeting everyone as their demographic. This doesn’t work out well. Next, they try to target everyone in their town. Again, too broad. The more narrowly defined your niche is, the easier it will be to market to the right audience.
Lack of Research
You have to know what your customers want. Too many would-be entrepreneurs go into the market thinking they have a great service or product to offer, but they fail to realize that nobody wants that service or product. By doing your homework and researching your market, you will know exactly how to meet your potential customers’ needs.
Often, when starting a business, a partner is needed. One of you is an expert in one area, and the other is an expert in another one. Your ideas for the company will conflict, and without a clear resolution, it starts internal strife. You work harder and your partner works less, but your partner thinks he or she is working harder than you. Ultimately, the business dissolves because the partnership didn’t work. By having a clear business plan that lays out the duties of each partner, you can avoid most conflicts before they even arise.
It could be said that a business boils down to two aspects: marketing and bookkeeping. If you excel at both, it doesn’t matter what you are selling or offering because someone will buy it. The sad truth is that most entrepreneurs know their craft and little else. Instead of fumbling through your marketing campaign, hire out that aspect of your business. It costs money, but if done right, it will bring in much more than what you spent.
Not an Expert
Too many entrepreneurs start their business because they need a job. They have a vague idea of what they are doing, and they think that because they’re better than their peers, they should make a living doing it. The sad truth is that without business skills and real expertise, these entrepreneurs are destined to struggle.
The points that I have discussed aren’t going to get you a one-way ticket to success. They might look as easy as they sound but do not let the words fool you. The process can take quite some time to cover. But that should be your silver lining right now given the lockdown and other restrictions. Now is the time where your people can start working on the idea before investing in the development.
This is not the right time to take a shot in the dark. There’s a high probability of failure if you plan to play the game without prior planning. I’d suggest you spend your time wisely and I can guarantee that you will be rewarded handsomely if you have a keen eye that can observe without acting in haste.
Think about each of the topics and points mentioned in the article and let me know if you need my or my team’s help in solving the problem. I am always here to talk about these things.
You can reach out to me at firstname.lastname@example.org and I will get back to you ASAP.