Updated: Sep 18, 2019
(Jitesh Manwani is a business coach and consultant based in Indore. Also in his long span of career, Jitesh has been a Corporate Trainer, Motivation Speaker, Keynote Speaker, Leadership Management Consultant, Life Coach and also a Career Coach in Indore)
These days, people quit their job and start venture of their own. Government of India also provides many benefits under startup India initiative and provides them with tax benefits; fast tracking of procedures and many more benefits to encourage these units. Startups are founded with a lot of energy and hard work but as time passes majority of them fail. There can be many reasons for the failure of a start up.
Thinking of a startup is quite challenging as it requires monetary capacity, knowledge and understanding of the market. We also hear many success stories of small units which grow and earn profits within few years. Before starting any business if proper planning and research is done then there will be less chances of failure. There are many points that has to be considered before starting a startup/business but let us check 8 important aspects that you should not miss to check before starting a start up:
1. Idea solving a real problem:
The basic idea to start a business should be to provide solution of a problem which the society is facing.
Identifying the problem and providing solution should be the motto of your business. If you are able to identify the correct problem and start researching, nothing like it.
The best example of problem-solving business idea is given below:
Gauri Nanda has given wheels to an alarm clock. As soon as alarm snoozes, the alarm clock will fall off from the table and move ahead and starts making a big sound, no option left you have to get away from bed to stop the sound. By this probability of sleeping back becomes less. This is an interesting way of solving problem in a unique way.
While solving problem you should always think from customer’s point of view but not from your point as your problem may not be a universal problem for which you are searching a solution. One more example is an entrepreneur has started giving 3 set of socks instead of 2 as he thought generally if one is lost, they can use the 3rd one but it was not a hit as it might not be a big issue for customers. So we should think if people really care about the problem.
2. Unique selling proposition:
Your product should have USP, where people are ready to pay for it. Flipkart initially started with selling books and promised to give new books to the customers at best price and deliver it to their door steps. Customers were satisfied with the concept as there is no need to try books or manually check them and with this marketing technique Flipkart is selling everything online. So always highlight your product or service to prosper in your business.
Even Snapdeal started with selling deals of Café, Spa, market places, restaurants etc which was its USP Same way Paytm started with recharge then wallet and now it turned into a big bank.
By these examples, you should try to figure out what is the USP of your idea and why people will come to you and pay you. To have an understanding of what customers require, we should conduct a market research which is very important before starting a new venture. If you want to know how market research helps in making business successful, click on the below link.:
3. Are you good enough for your idea?
Apart from USP or better idea of your product, third important point you should check before starting a startup is if you have required resources to start business like time, energy, business acumen, and network.
People should always see growth in your business idea and try to fund your business. You should invest only till you take your idea till it sustain into the market. Basically your business idea should be fundable Best example of fundable idea is BYJU’S, which started in 2011 and by 2016; there were many investors who were ready to invest in BYJUS.
If you want to know how to get funding for your start up click on the below link which explains how to manage funds for a start up and gives a better idea to manage financials in your business:
4. Is your idea scalable?
You should ensure that your business has scope to grow. Business should always have a growth scale and should not stop at one point. It should not limit at one place. Most of the startups fail as the entrepreneurs will not be able to find new clients and there will be no improvement in their business. In the long run expenses increase and if there are no profits to meet them then business will run in losses and there will be no option left except for quitting.
If you want to start a business and want to have an idea of businesses which are scalable and does not run into losses, click on the below link.
5. Price of the product:
The price of your product should always be appropriate it should not be overpriced or underpriced. If the product is underpriced then you will not receive the required margin and if you increase the price then sales will fall down, people will pay more only if the product is a premium product. So price should be appropriate and should meet your requirements. You should also consider that customers should get double the benefit of the amount they pay for the product.
To know more about how to fix the right price for you product follow the above link
6. Test run your idea:
You may have a very good business proposal and want to know about the potential market then test run and check how good your ideas works before implementing your idea or starting your business. If you want to start a boutique put up stall in some exhibition and check if people like your collection, price and varieties. If you feel that your products have good demand in the market, then you can start investing in the boutique. Many business owners start business without research and ground work and later realize that their idea was not working properly so pilot run is very important to understand the market demand and help to save your money and time.
Follow the below link to understand about test run without wasting time.
7. Passion or money:
Be clear if you want to start business to make money or chase your idea as money will come late but you would require lot of hard work to make your idea or passion successful. There are people who work only for the passion and chase after their idea to see it to be successful.Mr.Ashish Hemrajani was one among them. He is the owner of Book My Show. His idea was to improve the movie ticket buying experience of his customers. His focus was just to see satisfied customers. He worked hard almost for 15 years just to make his idea successful and only now his business reached a 300 crores business which required a many years of hard work to chase his passion.
Click on the below link to know the successful story of Book My Show owner which is quite inspirational to the youth and mainly to the people who want to chase their dreams
8. Target audience:
Last point but very important as it decides the fate of your business. If you are good at all the above points, and ignore this point, then business will surely run into losses. They are ‘the customers’ who are the king of any business. You should exactly know who your target audience is like their mindset, earning capacity and their demographics so as to prosper in your business. They are the people who are most likely to be interested in your business, all your business revolves around them. Once you are clear about you business, the next step is to identify target audience as all your marketing activities depend on them. It will help you to narrow down your focus and implement better ideas.
To know the target customers you should go for a trial run in a small market before starting a business.
The best example to understand about target audience is the owner of Patanjali, Dr.Balkrishna who had done a trial run and identified his target audience who are ready to buy his products; he was able to get good funding and his idea clicked very well in the market.
If your business is able to meet all the above 8 points, then you can easily start your business without any hesitation and thinking further as your success story will be remembered and people will follow you.
The path to success is always hard and there may be many failures in between but never lose hope and always try to bring freshness in your business. Always work hard to achieve your goal and be genuine to be a successful entrepreneur.