We all have at least once in our lifetime thought of building a startup that could change lives. With the idea of a new business setup, comes so many useful ideas that can improve society. However, it’s crucial to focus on ideas that can benefit both society and generate profits.
Do you know that 90% of startups fail? There are three main reasons for this failure; lack of market need, lack of experience, and incompetence. This points towards the most important factor for a startup which is an effective idea. Make sure your idea fulfils a certain need in the market or no one may buy it.
Do you have what it takes for a startup to be successful? Well, you only need three simple things; know your product profoundly, know your target market thoroughly, and work restlessly and consistently.
Are you looking for ways to set up a new business with minimum costs and huge expected revenues? We have brought a startup-making process guide on how you can put your business idea into practice and generate good profits.
Explore Your Idea and Its Need
Do you have an idea that you want your startup to implement? Before we start the business startup-making process, it is essential to realise that a promising business idea solves a market problem.
If you still do not understand the problem that your idea can solve, look at who your target audience is. You must identify who will buy your product. Once you identify your audience, you will understand why they need to buy your product. It will further help understand the scale of the business you can set up.
For instance; you have a product idea that will solve dehydration issues for athletes. Imagine the scale of business you can do with this idea. It will solve the problem for millions of people around the globe. The idea is effective, solves the problem of dehydration, the target audience is very large, and has significant development possibilities.
Your idea can solve more than one problem at a time, but you must identify the primary and secondary needs of your target audience. Lastly, the product must be compatible with the targeted segment. For instance, whether the ingredients you have used in your product are suitable for the age group you intend to target or it could also mean that the audience must be able to understand how to use your product.
Specify and Analyse Your Target Audience
When you think of a business product, you must know who will buy it. It helps understand the effectiveness and possible opportunities of the business idea. If you don’t know your target audience well, how are you going to communicate with them?
Do you have a certain budget to set up your business? Well, you must have a specified target segment, you will waste a significant part of your budget communicating with the wrong audience. Lastly, you must specify your target market to design your marketing campaigns accordingly.
You must be wondering how to specify the target audience. Well, there are so many different models to identify your target market specifically. One of these models is Ideal Customer Profile (ICP). This model helps you identify details of the individuals you are trying to sell in terms of their various demographics.
Identify Your Competitors
Imagine you are in a shopping centre or a grocery store and see two very similar products in front of you. Which one are you going to buy? You will pick the one that will have a low price, better quality, good packaging, or an effective marketing strategy that captured your mind.
This is why you need to know your competitor and their products well to develop a competitive advantage within your product. Also, there are very rare chances for the success of a product that has no competitor because such a product may have no need in the market.
You can also identify your target market if you identify your competitors correctly. You can develop a similar marketing strategy with a little bit of improvement to get a competitive advantage. Identifying your competitor will also help you develop uniqueness in your product.
You might think of a very creative marketing strategy to communicate with your audience. For this, you should at least know what your competitor’s marketing strategy is and how it is functioning. It will also help you find new marketing channels to promote your product.
Are you better than your competitors?
Once you have known your product and your competitor well, you should think of why your audience should choose you over your competitor. For this purpose, companies develop a Unique Value Proposition (UVP).
UVP is a simple statement that mentions how your product is different from that of your competitors. Most of the marketing strategies of companies are dependent on their UVP
Identify Capital and Revenue Sources
Having a business idea is not enough to start a business. You must identify where you will get the investment capital from. It is the most important aspect to turn a business idea into a revenue-generating system.
Like all companies, you should identify or develop a monetisation model for your company. It should identify how your product will reach your audience and how their money will reach you.
For instance; Discovery Plus has a subscription-based monetisation model. While Unilever sells every single unit for a specific price.
Marketing is the Key to Success
Last but most important, marketing gives you unlimited opportunities. Do you know a successful company that does not spend a single penny on marketing? No? because no such company exists.
Companies do realise that marketing is their only medium to communicate with clients. It helps them send their message to clients in a way that compels them to think about the product offerings. A better marketing strategy delivers a company’s idea more profoundly than a vague marketing strategy. It is the one that hits the pain point directly which tingles a sensation of thought in them.
The world is a global village today. People trade with no border limitations. This brings more opportunities as well as competition for new and existing businesses.
If you are one of the new startup planners, make sure you have a genuine idea with all the required resources to survive in such a deadly competition. At last, it is not only the idea or resources that help you grow, it is your commitment and dedication that takes you from zero to a billionaire.