How can you know that a startup is likely to succeed or not?
Before starting any business, you have too many things to set up and many questions come to your mind. Nothing beats the magic of creating something new from the scratch. To start a business is not an easy task, there are various things involved. And you also have the pressure of doing well to remain long in the market.
A study found, failure rate to be as high as eight in 10 businesses, so it is a worthy question to ask before investing significant time and resources into your new venture.
If you are planning to start a business, then here are some key factors which you really want to keep a note on:
- Customers’ Retention
Customers are the foundation of any business. Before you start any business you need to find and identify a prospective customer. You have to tell what you can offer to your customers that someone will gladly pay for it. The customer you identify will represent a market that matches your own needs and ability.
It takes months to find a customer and only seconds to lose. Make sure that your customer gets benefited by your business.
- Your Product should be self-sufficient
The product you are dealing with needs to satisfy customers needs. You have to accept that the business you do is for your customers. And, it should reflect the quality of your product. Stay focused on solving your customer’s problem.
When you begin to design your product, you have to bring out on what your customer wants, stay vigilant against anything that could represent a barrier to adopting such high switch costs.
- Look out the Time when you enter the market
Every market has a limited window of time before it expires. When a new thing gets invented, markets are more likely to enter and those who offer solution gets the opportunity of ruling the market. Conversely, there is also a risk in being early to a market. As one doesn’t know what and how it will take them in the future. In the other words, chasing an unproven market can lead to an unknown result.
- Competition around the market
To say that the startup is competitive is an understatement. All business is competitive, but the world of startups, high stakes and even higher potential for disruptive growth and success makes competition particularly fierce.
When you enter the market, you have to face competition every now and then. It is not easy for a startup to establish its image. You need to focus on your competitor as well.
- Fulfilling Finance/ Capital
“How do I finance my startup?” – This is the most common and important question asked by a starter before starting a business.
Money is the bloodline of any business. According to a recent study, over 94% of new businesses fail during the first year of operation. Lack of funding turns out to be one of the common reasons of failure. Accumulating capital before starting a business is necessary.
- Skilled Manpower
You may have a great business idea, a solid plan to implement. But if you don’t have the right team with you, your business may not do well. It is important to have a great set of people around you who work for your business. But, if your team doesn’t have the right balance of personalities, you could soon be closing up the shop.
So, if you are planning to start a new business, you must keep note of these things.