You just decided to start the venture you were dreaming of and building up the business plan for venture capital fund that could help you sail through the entrepreneurial success. This is a time when you need to be careful about the following 10 things that would get you success in your new startup. Journey to your new venture would not be plain and easy but careful planning and execution would ensure you are able to reach your target sooner or later. These are the practical tips (highest to lowest priority) that I would like to suggest out of my experience of trying a couple of ventures. You may consider it a checklist to start your venture.
Firstly, Clarity of the objective
It would help you build a blue print of success. That would mean deciding the objective of the startup, is the objective for profit or a social cause? What amounts of return do you expect your venture to operate on? Does the domain of venture really interest you or you are just following the herd walk ?
Secondly, the BIG idea
It is the starting point of any successful venture. It all starts from an ‘IDEA’ and its potential to become BIG. An entrepreneur must do a careful market analysis and research to qualify an idea for its potential. It also matters is the idea from a particular industry or it has a potential to create all together a separate industry vertical. Many entrepreneurs use their intuition to decide but a little planning and market analysis would increase the probability of its success.
Thirdly, Your organization
That means how your organization is structured, whether you are proprietary, a partnership with your professional or personal friend, or you get along with 3 or more friends to start the venture. This becomes very important that the vision, mission, and plans set by the organization are in sync with all the members of the organization otherwise there could be a possibility of breakups amidst the growth of an organization that may disturb the overall equation and momentum of the venture. Do not rush to form a partnership without judging the partners. Also, it is good to be 2 than alone as it could double the speed of your venture. Also, it is seen that investors would prefer to have more than 2 partners who complement the skills required for the venture, however, there are cases in which single owner is able to build successful ventures.
Fourth, a Reasonable amount of capital
How much to spend, is often a dilemma every entrepreneur comes across. In this highly competitive market scenario, an entrepreneur needs to make sure the product is able to deliver VALUE to the customer. We often tend to cut corners to build a high-quality product due to lack of enough capital or using a low-cost substitute, called Jugaad or Frugal Innovation. In a bootstrap mode, the entrepreneur often restraints to spend on factors that could elevate the customer experience. That is where the pitfall is.
We need to inculcate wisdom to decide to do the expenditure that could directly impact the customer experience and would help to get revenues. Accurate business planning would help to consider all the activities and their respective costs that would impact the customer experience. So, please take care where to spend or where not. You must also plan enough capital to sustain for your living for at least 6 months to 1-year time. This much time is generally required to get the ball rolling and seeing some revenues coming in. Often lack of capital impacts the ability to think creatively.
Fifth, Right Strategy
The strategy is simply the set of decisions that you need to take that would enable you to achieve your vision, mission, and goal. And it is important you need to set the course of your strategy for a considerable amount of time, after seeing its working for you. Changing your strategy too often would only waste your time without any outcome. So, ensure your strategy is in place before you decide to start that must include product, place, pricing, and promotion.
Sixth, Focus
When you start your venture and you work in every direction possible, it is like you are cutting the iron with the hammer that would never happen. To cut the iron you need a cutter that focuses on a mark to cut apart into two pieces, similarly, you need to focus on one market segment first, excel in it and then diversify to other related products that would help grow the revenues for that segment. Must note you should not change your focus too often; take a good amount of time to work on it.
Seventh,
The real world is different than the imaginary world full of assumptions. I have experienced when we realized that the business plan made in an excel sheet is 180 degrees opposite of what the real world outcomes are and that is where the catch is. When we make a business plan we tend to be too optimistic and consider a lot of assumptions that change over the period of time. We must avoid it as it can create a big hole in the finance. We should try to make the business plan as close to real world and based on primary market research, not on some secondary data available on the Internet. It would be a big task but would certainly increase the probability of success.
Eighth, Pivoting
It is a familiar word in the startup world. When your first business model isn’t working (and this happens more often than not), the CEO and team pivot to plan B. These are deep breath moments! Often entrepreneurs tend to have emotional connections with one idea that they started with. But if we see the idea isn’t working out we must have the ability and plan to pivot to option B that would help sustain. And in reality, we shouldn’t just have plan B but have more plans to pivot until you see your business take off successfully. But be careful you must not pivot frequently out of desperation to get a faster result. You must give reasonable time window to assess the progress of the plan and only pivot when there is a dire need.
Ninth, Networking
It is about sharing, not taking. It is about forming trust and helping one another toward goals. Your network can be an excellent source of new perspectives and ideas to help you in your role. Being visible and getting noticed is a benefit of networking that is essential in career building. Expanding your contacts can open doors to new opportunities for business. Gaining the advice of experienced peers is an important benefit of networking. So, do not avoid meeting people and networking with them.
Lastly,
At the end, your conviction and lot of patience on your idea and venture would only get you success. You need to believe in your idea.
Did I miss any other important point? Do suggest me in the comment.
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