Startup Advice: 5 Things to Consider Before Development
There are many pieces of startup advice floating around on the Internet, but not many of them are based on the solid ground of 50 years of experience as senior executive manager. Today Peter Mayne, who has worked for many businesses around the world, shares his five main questions every startup should consider before diving head-first into the unknown!
- Does your product meet a market need?
Does it provide a solution to an existing problem -a solution no one else has figured out the way you have? No surprises here – the first question is related to a statistic claiming that 42% of new businesses fail due to the lack of market need for their product. Although it may look as a great opportunity and something really valuable in your head – ask yourself how your target audience will react to your product . Then ask the audience itself; there is no better place to look for answers. You will not only get the answer to the question should you proceed, but you will also receive relevant feedback and ideas.
- Can your idea be scaled quickly?
Many startups fail because they simply can’t earn revenue and grow quickly enough. It is growth above all that signals your idea is something big. The competition out there will be huge, so make sure your startup is always one step ahead in order to please your investors.
- Does your startup have a realistic revenue model?
Being realistic can make or break your business. The beginning is always a difficult period in terms of funding – you have to be smart in creating your business model to reflect these difficulties and overcome them effectively. You can find more about funding in an article we covered last week.
- Do you have a killer management team?
Being surrounded by people who care for your business as much as you do is extremely important for startups. Shared company culture and values can move your ideas forward and help when things are not going as well as you’ve planned them. Your team should be able to take advantage of every means available to grow – not only in terms of development, but also social media marketing and other tools for growth-hacking.
- Is your money and processes management reliable?
Big ideas can fail simply because they are not managed properly. Many businesses invest so much in IT that they kill their idea. You have to balance out activities in order to be able to meet all business challenges and satisfy your market’s need in a sustainable way.
If your business is struggling with ongoing processes, it’s a good idea to get back to these questions and reassess your strategy. And if you are a startup in the initial phases of development, take the steps needed to ensure everything is going smoothly – from development to management, so that you can push your way through to explosive growth.
Feel free to ask any questions – we’ll be happy to help! Please post your feedback via the discussion boards below.