10 THINGS TO WATCH OUT BEFORE GOING FOR A START-UP
‘The Last 10% it takes to launch something, and the rest 90% it takes to make it to the launch.’
Yes, this is what we call a start-up. Though for a section of people start-up seems to appear something very alluring while only the one who goes for it knows what it actually is. Many people find it just a simple thing that anyone can go for and excel. But what it takes to pursue a start-up is the only thing that an entrepreneur knows.
WHY STARTUP – A BUZZWORD
Earlier start-up was something that only a limited section of the society opt to go for due to lack of ability to take risks, funds, awareness, and dilemma about their skills. But according to surveys, start-up is nowadays one of the tempting career choices for almost 63% of the youngsters all over the world. If we talk about India, in 2016 there were 19,000 registered tech start-ups which were an enormous number. Maximum of them had Artificial Intelligence, Data Analytics, Robotics, Machine Learning, Deep Learning, Face Recognition, Computer Vision and many more as their base. But what took this number reach so high.
The cruise set its mark in 2007 when two IITians Binny Bansal and Sachin Bansal started an online bookstore viz. Flipkart. This online bookstore later turned out to be one of the most acknowledged e-commerce platforms in India. As of April 2017, Flipkart was valued at $11.6 billion. Apart from Flipkart, various other start-ups like Snapdeal, Oyo, Paytm etc. successfully grabbed a good attention of the audience. Have a look at the stats of these start-ups that have contributed to make Start-up a buzzword.
In 2017 offered eBay and Snapdeal $500 million and $800 million respectively. But the outcomes are not declared yet.
Acquired various online marketplaces like Grabbon.com, esportsbuy.com, Freecharge.com etc. but any major acquisition is not yet there.
Acquired Zo Rooms
There are talks to acquire NearBuy and Deals Platform Little.
The success of these start-ups tremendously impacted the career choice of the youngsters. The generation finds it fascinating and an easy way to earn more money in a very less time. Thus the boom towards the culture of entrepreneurship flourished throughout the country and people from all fields started innovating their own venture.
BUT IS IT ALL TOO EASY?
We often hear success stories of various start-ups but are all start-ups a success. You need to watch out a number of things before going for a start-up. It is never that easy as it sounds from the outer edge. The scenario is entirely different and requires a lot more efforts than you can ever think of. Thus start-up is not everyone’s cup of tea.
You would be shocked to know that 90% of start-ups are a failure in a year. Among the rest 10%, only 5% of them are able to generate profitable revenues, the rest 5% does not even reach to break-even or are in loss. Still, if you want to convert your idea into a big organization, here we are with 10 tips that you must know before starting your entrepreneurial journey.
ARE YOU PREPARED ENOUGH?
Yes, this is the foremost important thing to analyse. What is mandatory enough to know is that either you are ready to go for a long walk? Are you having that zeal to work and take the things which might not be in your favour at times? Do you have enough mental stability to make the things move in the right direction? Self-examine all this as it is a big part of the decision making process. So, if you are willing to go for a start-up, also self-analyse the facts why you are going to do so, what is the purpose that you would be solving- Is it just money or a real passion.
WHO ARE YOUR CO-FOUNDERS?
A start-up is always recognised by its Founding team members who lay the roots to an idea. It is very important that the co-founders must have complementing skills that will help each other grow. Though a start-up is something where one cannot judge its success or failure considering the past successes and failures of the founding team. Still, a good profile always adds to the odds of achieving great opportunities ahead. Thus, it becomes mandatory to analyse what background the founding team comes from, what are their previous background experiences/achievements etc.
The idea is the only base that holds the entire weight of the start-up. Most applicants work on the ideas that various companies and brands have already implemented. The ideas are generally imitated from the similar existing companies, which is not always the best thing to do. The idea should either be innovative one or it should enhance the customer’s experiences as compared to the previously available services. The best example is Ola or Uber that worked on improving the public experience. Earlier you need to move to the Taxi, now a taxi is coming to you over a single click. Thus work in the zone that would ultimately lead you some good results.
FIGURING OUT THE TARGET AUDIENCE
The higher is your reach, the nearer is the success. But what kind of audience you need your product to publicise for, which section would take an interest in your start-up, you need to work on these parts. Inspect whether your start-up is a B2C (Business to Customer), B2B (Business to Business) or H2H (Human to Human). Frame out the strategies accordingly to promote your product. Each category requires different approaches to gather the attention of the audience.
ANALYSE THE POTENTIAL OF YOUR START-UP
Does your idea have the potential of surviving in the upcoming years? Is your product or serviceable to compete with the other products and services of the similar zone? Analyse how the similar start-ups flared in the same market. If the start-up is not able to stand in the market and is not competitive enough, then you need to think before giving it a start. Try to figure out all the ifs and buts you may face while competing in the market.
The other thing that attracts the audience the most is the geography and location of your start-up. The location should be somewhere where employees, customers and clients can easily get access to. People always avoid opting the places which are difficult and hectic to reach. Also, try to figure out where you find yourself in the upcoming years and how this would go while expanding your company location wise. This could be analysed as to why the start-ups which are located in industrial hubs are more successful than the others.
PROPER MANAGEMENT OF FUNDS
Nothing in the world could be implemented without funds. So this automatically reflects the importance of managing the funds in a start-up. You need to be very specific while spending funds on different things. You need to prioritize your requirements and spend accordingly. Over expending or low expending may have an adverse impact on your strategies and may affect the progress of your product.
Moreover, try to interpret how much fund you initially have for bootstrapping and how you are going to utilise it in your favour. If you do not have enough money to run your company without any external investment at least for the initial one year, you must drop the plan for going to a start-up. Once you are ready with your product, start seeking the Venture Capitalists, Angel Investors etc. to raise your funds. Also, figure out the other sources where you can generate funds and raise your funds.
ANALYSING THE RISKS AND REWARDS
There is nothing in the world that only has the positive side. At times you will be facing the situations where the odds would not be in your favour. And this is the only time when you can learn something worthwhile from your bad experiences which would later turn out to be your rewards. Your part is only to analyse both the phases and work in favour of them accordingly. Analyse all the possible risks and rewards before moving ahead and frame your strategies to overcome them.
THE FINAL LAUNCH
Creating a base before launching your product or service is something every start-up must do. Before launching your product first evaluate the product as an end-user and figure out either you are contented with the service of your product or not. If you get an answer in positive, then it is the high time to go for the final launch. Build connections with PR agencies that would help to publicise your product. Run sponsored adds, frame strategies for brand building, digital marketing etc. before launching the product.
KEEP ON EVALUATING
Evaluation is one thing that helps you keep a track of where you are standing currently and what is the expected place you will be in the coming days. It helps you know what steps you should take to overcome the difficulties you are facing or you may face in the future. Evaluate the things at every single step and assure yourself that you are not leaving anything undone before moving ahead.
Even after considering and watching out all these things, always remember nothing can judge the success and failure of a start-up. Any amount of due elegance on your part can never guarantee the success of your start-up. Apart from all the above-mentioned facts, the only thing that would ultimately lead to success is the way you handle the situations that are not in your favour. How you manage to work out the odds and how you overcome the scenarios that would force you to quit. If you could conquer all the difficulties then no one could ever stop you reaching the heights. All you have to do is keep going with the passion of accomplishing the goal.
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AIMagnifi is an Artificial Intelligence and Computer Vision based company. We primarily aim to target the unexplored combination of retail sector with the power of AI. We currently have an essence of expertise in the areas of Artificial Intelligence, Computer Vision, Facial Recognition, Machine Learning, Deep Learning and Data Analytics. We target to bring out the best outcomes out of these areas that would ultimately personalize and enhance the experience of the end-user. For further details visit our website - http://aimagnifi.com