How to start a startup? Nobody plans to devote months and years to a company that will fail and create a successful product. And anyway, 90% of startups fail. What do experienced entrepreneurs who have launched successful companies know that the founders of unsuccessful projects do not know?
Why is it important for a startup to start well?
The reasons why 3 out of 4 startups fail are different, but they often come down to the following:
- The company develops a product for a non-existent market (insufficient demand);
- Managers do not know how to manage cash flow, for example, they use a dysfunctional model of income generation;
- The Company does not adapt to changes in the market;
- The project is not growing fast enough;
- The Founder burns out at work.
There is a lot to talk about, but an interesting fact is that not enough attention is paid at the very beginning of the startup creation. The success of a startup often depends on five key questions that must be answered before it is created:
- What is your company’s specific business area?
- What kind of problem are you trying to solve?
- What market are you going to enter?
- What product will you offer to solve the problem?
- What is the economic calculation of your business model ?
It may depend on your first steps if your company is valued at millions of dollars or if you will be another startup of the 90% that no one remembers. The basic aspect in creating a successful startup is to identify the ideal intersection between your skills, interests and what you will be paid for.
Almost every successful entrepreneur has found the optimal golden mean between his own interests, skills and the opportunity to earn on his idea. Take, for example, Steve Jobs. He liked design (it was his passion), he was an excellent marketer and product manager (ability) and he managed to combine the opportunities with what is popular in the market at a certain point (monetization) – there were also personal computers, MP3 audio players, 3D effect movies and brand new mobile devices.
What next, you ask? Take a pen, a piece of paper and do not stop until you answer the following key questions. If you are in need of help and do not have any experience in the business field, you will need services for startup. With such services you can launch a really powerful well prepared project with serious potential. Use this option to start some really good projects.