7 Things You Have To Consider Before Launching A Startup Company
While we are all very aware that there is a long way to go from getting a good idea to creating a great startup company, the fact is, not many people know how to go around doing it. And, while we cannot teach you how to get rich, we can point out some of the essential things for the transition between ideas and a successful company.
Here are seven the most important things to ask yourself before starting out.
Are you prepared to start a company?
Do not rush with this one. Making your own startup company is a huge lifestyle change that not many people can stomach. It is a lot of hard work, has a steep learning curve, and takes a lot of determination. If you are used to being an employee in a company that does 8 hours a day, this is going to be a drastic change that you might not be ready for.
Are there actual customers for your idea with money to spend on your company?
The fact that you love the idea you came up with does not mean that the others will see it the same way. It is quite necessary for you to believe so, but you should get a product that convinces the customers that they need it rather than just like it. And you should always think about who you are marketing the product to. The people who would benefit from your product the most might not be able to afford it. Try talking to some of the experts in the domain to see what the challenges might be.
Market opportunity – Is it large, and is it growing?
Try to avoid relying on your judgment when it comes to this and remain as objective as you possibly can. Find an unbiased source that analyzed the data for you and see if the market reports support your business idea. Remember that just because there is a large market for it, it does not necessarily mean that it will grow fast enough for your startup to survive.
Check for competition
Before going on any further than the basic idea, use any of the online search tools to see if it is already a crowded sector. If Google offers hundreds of results near you when you search for a product or a service that you want to start, selling it might just be an unprofitable idea.
Does your idea come with some unexpected complications or costs?
A lot of products fail before they even start selling due to various dependencies or complications that can cost a lot of money. A great example would be creating a brand new type of vehicle. While you might sell a few units locally, the lack of repair shops and services around the world would simply complicate it far too much. Also, consider if your project might need some approvals and try to get them before spending big money on your startup. You should do your research and get to know all the possible costs, marketing necessities and cultural issues that might affect your product’s success.
Can you properly defend your intellectual property? Do you even hold that property?
This is something that should not take up too much of your time or effort. However, it is incredibly important. Check the patent office to see if the idea you currently have has already been patented by someone else. You might be surprised when you find out how many wild ideas already hold patents around the world. It could even be a good idea to pay a patent lawyer to do it for you.
Can you get enough people to create a qualified team that is going to be as motivated as you are?
You really do need a team. Although you could try and do it all by yourself, that would be incredibly difficult depending on the idea you have. You should keep in mind that most startups fail, and when we say most, we mean 9 out of 10. If you want yours to avoid that statistic, you need a well-motivated team, and every member needs to carry their own weight. Do you have someone to handle sales, development, marketing, etc.?
And remember, just because someone is your friend doesn’t mean that they are competent enough to hold an important position in your company.
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