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5 Reasons Why You Must Learn The Basics Before Launching Your Startup

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5 Reasons Why You Must Learn The Basics Before Launching Your Startup

You’ve probably heard millions of times that one of the key things to launch a startup and succeed is to jump into the pool and just start doing things.

In other words, just go for it!

Usually every start up comes from a great idea, and if you reached the point where you decided to start your own company, it means that you are a real implementer, not just a dreamer.

However, you should be careful with this approach.

Even if this is the needed attitude, you should learn the basics before launching your startup.

Behind the word basics there is:

  • learn what your target customer wants
  • Learn the insides of your business
  • Know who your key suppliers are
  • Understand the key technical aspects of your business
  • Anticipate the main risks and opportunities

 

5 reasons why learning the basics is so important:

 

1. To avoid wasting a lot of money

Let’s explain this point with a simple example.

You want to sell very expensive women’s shoes through the internet, and for this purpose you hired an expensive web programmer who designed a beautiful website for you.

Your web is running great, then it’s time when you decide to invest an important quantity of money in promoting it.

Your main promotion channel is Facebook.

You start running ads on Facebook targeting young ladies, because young ladies always love nice shoes. You get plenty of Facebook likes and shares, but you don’t sell a single pair of shoes.

The problem is that the young ladies usually don’t have the money to pay for the shoes that you are selling.

Only women with a higher income, who are usually a bit older, could afford these expensive shoes.

This is a clear situation where you could waste a lot of money simply because you don’t know your target customer well enough.

” The secret to getting ahead is getting started.” – Mark Twain

2. To grow your business safely

We hear a lot of stories about startups with great success in a very short time.

Even if it might look like these companies made miracles to succeed, each of them is built on a solid strategy.

If you don’t learn and anticipate your major milestones you will probably fail.

This is a common mistake when we talk about the legal implications of a company. Usually startups spend a lot of money, time, and effort because of poor planning.

For example, imagine your business is about selling apples. You start your business by investing on a terrain and planting apple trees.

Then, when you want to start selling your apples to big supermarkets, they don’t accept a single apple without a health certificate issued by the ministry of agriculture.

The reality is that you had never thought of such a certificate! More than likely you will lose all your first year sales.

So, try to plan well in advance for the key milestones of your project, with all their implications.

 

3. To avoid wasting a lot of time and energy

Speed is one of the most critical factors for startups to succeed.

The hard reality is that you are now really excited to be launching your new idea, but more than likely someone else on the other side of the world will have the same idea, or similar, and will be launching it too.

The sooner you put your product into the market, the better chances you have to gain a good position.

Learning all the implications of starting a company and anticipating the possible issues that will appear will help you create a launching and growing strategy and will save you lot of time and energy.

If you plan well in advance you will need to build your strategy with much less trial and error.

It does not mean that if you plan everything you will not have to try any other strategies to succeed. However, you can already discard a lot of non-working strategies by learning about them from the beginning.

Dreams

4. To be able to think big

If you want to succeed by launching your start up you must have a set of beliefs. Many of these can be summarized in two words: Think Big.

The reason behind this is that you can only achieve something that you know it exists. The most obvious example: A man could not go to the moon if he didn’t know that the moon existed.

If you take a look at the most successful entrepreneurs you will realize that most of them have something in common.

They all think big and they are never afraid of looking beyond their limits.

It is really important to learn from the beginning of your project what you can achieve, even if this is a really challenging task.

Otherwise you’ll never think big enough to reach your target.

 “You have to think anyway so why not think big.” – Donald Trump

5. To keep your motivation and engagement with your project

It’s a hard reality that many startups don’t succeed, even if the ideas behind them are really great.

One of the key elements to succeed is to really believe in your project and push for it until it works. The issue is that it’s really easy to lose motivation in the project if you don’t see quick results.

In many cases entrepreneurs don’t see these results as they expected because they haven’t learned the challenges before launching the company and they haven’t invested enough time to know what was coming.

In consequence they have to face many unexpected situations, losing the motivation to keep moving forward.

This happens, most of the time, with one of the following things: a legal aspect, a technology aspect, a customer satisfaction point, or a supplier that does not deliver.

Expect what you will have to face and go for it!

Do you share this point of view or you just think that the secret is to just do the things and correct the mistakes along the way?

 

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Startups

5 Strategic Power Moves to Successfully Build Your Empire

Transitioning from idea to empire is a journey of strategic planning, execution, and constant evolution

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how to build your empire

The journey from a fledgling idea to a thriving empire is both exhilarating and daunting. The Startup Launchpad is not just a process but also a strategic framework that enables visionary entrepreneurs to become market leaders. This framework comprises five power moves, each a critical steppingstone in building a successful business.

These moves—Ideation, Business Plan, Online Presence, Strategic Marketing, and Launch and Growth—are the blueprint for turning aspirations into achievements. (more…)

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Startups

How to Avoid Startup Clichés and Buzzwords When Pitching Investors

Using jargon can make you sound like you’re trying to fill space instead of providing meaningful data

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How to pitch investors better

Entrepreneurs frequently seek startup funding through a variety of channels. Yet, none seem as challenging as successfully pitching to experienced investors. After all, investors are pressed for time and eager for opportunities. These characteristics make it challenging to motivate them, especially if you’re bombarding them with a pitch full of jargon. (more…)

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Startups

From Idea to Empire: 5 Power Moves for Your Startup to Thrive in Today’s Market

As an entrepreneur, I’ve learned that understanding market dynamics and choosing the right business model are crucial

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How to thrive in the startup market in 2024

As an entrepreneur, I’ve learned that understanding market dynamics and choosing the right business model are crucial.

A few months into the startup, I was quick to gauge why it is necessary to go beyond the nuances of operational efficiency and the art of sustaining a business amid growing competition.

Collaboration is key.

The HR and the recruiting teams work with departments to foster a culture of collaboration, but what’s indispensable to business performance is the sync between the marketing and sales teams. What we’d consider as entrepreneurs is the need to ensure seamless collaboration to predict and achieve business goals together. In turn, this will help secure long-term recurring revenue for the business.

Besides, entrepreneurs need to focus on revenue as they gear up to take their startup from $0 to $1 million. The journey is filled with critical decisions, from identifying your target customer base to choosing the right funding strategy.

So, what next?

Read on… because here are five practical, results-driven strategies that you as a founder can implement to make a mark in their industry.

#1. Embrace the Lean Methodology

What is lean methodology?

It is all about pivoting resources to create more value for customers with fewer resources. 

This principle encourages you to be more agile and allow rapid iteration based on customer feedback rather than spending years perfecting a product before it hits the market.

Want to implement it?

Here’s what you can do.

Build “Measure-Learn” Loop: What I did was develop a minimum viable product (MVP), a simple version of the product. You can do the same since it allows you to start the learning process as quickly as possible. After launching MVP, measure how customers use it and learn from their behaviors and feedback.

Here’s what I can recommend here:

  • Identify the core features that solve your customers’ primary needs and focus solely on those to develop your MVP.
  • Know the feedback channels where early users can communicate their experiences, suggestions, and complaints.
  • Analyze user behavior and feedback to make informed product development and iteration decisions.

#2. Focus on Customer Development

Let’s talk about taking our startup to the next level. 

It’s not just about getting customers – it’s about really getting to know them. We need to dive into their world, understand their struggles, and see how our product or service can make a difference in their lives. 

It’s like we’re detectives, piecing together the puzzle of our business hypothesis by actually chatting with our customers

What would you ideally do here?

Understand Customer Segments: I’d say, start dividing your target market into segments and develop a deep understanding of each segment’s demographics, behaviors, needs, and pain points. The idea is to get into their shoes and really feel what they feel.

Ensure your Product Clicks: When starting up, think of what you offer and consider whether it clicks with what our customers need. My thought was “Does my product solve their problems? Does it make their day better?” Put yourself through a tough grilling session to show customers the value proposition and ensure that the product’s promise matches what our customers are looking for.

I’d recommend the following actions here:

  • Talk to them – through surveys, interviews, or even casual chats. The goal? To gather real, raw insights about what they need and expect.
  • Use the collected data to create detailed profiles for each type of customer. This way, everyone on our team really understood we were serving. I think this should help your startup as well.
  • Try out different versions of our product with a few customer groups. It’s all about feedback here – understanding if you’re hitting the mark or if we need to pivot.

#3. Foster a Data-Driven Culture

The digital world is highly data driven since it fuels key decisions in a startup. 

I believe it’s essential for us to build a data-driven culture. This means, you’ll move from making decisions based on hunches or assumptions. Instead, the focus should be on data analytics and insights to guide our strategies and improve our outcomes.

What can you do?

Use Data Analytics Tools: You should be using these tools to gather, analyze, and interpret data related to customer behavior, market trends, and our business operations. Here, consider the adoption of pipeline forecasting that leverages AI to find patterns in marketing data. 

In turn, you’ll get areas for improvement since it can analyze historical data and predict the outcome for you to plan your.

Action Items:

  • Pinpoint key performance indicators (KPIs) that align with your business objectives and ensure they are measurable and actionable.
  • Next, you can consider training your team to understand and use data analytics tools. This might involve workshops or bringing in experts to build a data-savvy workforce.
  • Once everything is in place, regularly review data reports and dashboards. This gives us a clear picture of a startup’s health and helps adjust your strategies and predict future trends.

#4. Strengthen Your Financial Acumen

A good grip on financial skills is important to steer your business towards growth and making sure it stays on track. For this, you’ll have to understand the money side of things, which helps you manage your cash flow. Think of figuring out smart investment moves and sizing up any risks that come your way.

Here’s a tip on how you can get savvy with your finances.

Maintain Rigorous Financial Discipline: I’m really focused on cultivating a strong company culture, one that truly resonates with our mission. So, I’d suggest fostering open communication and encouraging a sense of ownership and collaboration among everyone in the team.

Action Items:

  • Get to know your financial statements inside out – I’m talking about the income statement, balance sheet, and cash flow statement. These are like the vital signs for your business’s financial health
  • Use financial forecasting that helps predict your future money moves. With this, you will have a heads-up on upcoming revenues, expenses, and how much cash you’ll need. Also, research on the available financial forecasting tools that can make predictions spot-on.
  • Don’t go at it alone. Regularly touch base with financial advisors or mentors. With them by your side, you’ll have a fresh perspective on your financial strategies to ensure you’re on the right path to hit your business goals.

5. Prioritize Team Building and Leadership Development

It is crucial to focus on building a solid team and developing strong leaders. This means putting our resources into the people who are going to propel our company forward. 

What you’ll aim for here?

Creating a culture where everyone collaborates and every team member has the chance to emerge as a leader.

What I would do:

Cultivate a Strong Company Culture: This culture should mirror our mission and foster open communication. It’s important that it encourages everyone to feel a sense of ownership and work together.

Invest in Leadership and Team Development: As founders, we’ll have to make way for opportunities for teams to enhance their skills, face new challenges, and grow in their careers.

Some concrete steps that you should consider taking:

  • Begin with clearly communicating your startup’s vision, mission, and values so that every team member is on the same page.
  • Conduct regular team-building activities and workshops to boost skills and strengthen a sense of unity and collaboration.
  • How about starting a mentorship program within our organization? The more experienced team members could guide and support the growth of newer or less experienced folks.
  • Alas… encourage feedback at all levels. We should keep striving to create an environment where open, honest communication is the norm and everyone feels safe to speak up.

I know it’s one thing to get your head around these ideas and quite another to actually make them a part of your everyday business life. But that’s where the real magic happens, right? It’s all in the doing. 

As a startup founder, this means more than just being a big dreamer. How about rolling up your sleeves to be the planner who pays attention to the smallest details. Ultimately, these tips and more tactics around it will help carve a leader in you who listens and cares and the learner who’s always ready to adapt

So, as you’re either starting out or moving forward on this entrepreneurial adventure, keep these practical tips right there.

May these be your guiding lights, helping you steer through the wild and exciting world of building a startup that’s not just a dream, but a thriving reality.

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12 Things I Learned in 12 Months of Working on My Startup

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Image Credit: Unsplash

A few weeks ago I launched my startup. It took exactly 12 months from the initial idea until the moment I saw my app in the App Store. And these were some of the most challenging, fun and exciting 12 months of my whole life. (more…)

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