Start-ups are the talk of the town nowadays. Everyone who thinks they have an idea, irrelevant to the idea being already conceptualized or not, is keen on introducing something of their own to the world. It’s an admirable thing to do along with being kind of a risk. The value of a start-up depends on the idea it is based on, but more importantly, it depends on the execution process. Venture capitalists see an idea worth investing only if the business plan is credible enough for their pennies. Thus, it begs the question what are the steps one should take in order to make a start-up credible enough to grab the attention of people as well as investors. Here are some of the steps that one should note down as the do’s and don’t’s before starting a venture:
Follow Passion, Not money:
A lot of people who come up with an idea for a start-up think of it as an easy way to make some extra bucks. While that’s a credible way of thinking, this is the place where a lot of start-ups fail to survive the harsh reality of existence. One can only pursue the idea of a start-up if it is associated with their true passion and not to the possibility of a way of getting rich. Hence, unless it is your passion that compels you to do all the hard work, it is better to wait till the inspiration strikes.
Don’t jump into an unknown territory:
A lot of ventures are generally built on improving one of the concepts which are already into existence. That’s a fair deal! Things can always use a bit of improvement. Although while that is true, it is advisable to only pursue concepts you are familiar with so that there will be a scope of improving it rather than doing something absolutely bizarre.
Look for credible guidance:
The value of a teacher is irreplaceable. The reason behind that is that a newbie needs valuable guidance in every field from someone who is experienced enough to have traveled through all the nook and crannies. Hence, it is advisable that you should consider having a credible mentor who will guide you through the landscape of your chosen venture.
Don’t be eager to hand over the equity:
For most of the start-ups, entrepreneurs generally try to court investors so that they can advance their business and reach. It’s a sound strategy, though it is important to know when to do so. As investors demand equity and shares in the business, handing it over to a wrong investor just for a quick buck isn’t really a good idea.
Build Customer Relations:
Each and every business, may it be small or big, runs on the basis of its customers. Hence, the saying consumer is the king. From a hardcore business point of view, this is an absolutely right analogy. Unless your product or brand does not connect with the consumer, you cannot really make a place in the market. So instead of running after earning profit, you should focus on the customer experience & sales.
Don’t loose the sight:
The majority of the start-ups do not survive after 6 months is because of lack of funding. The resources you have a need to be utilized in the best way possible while keeping in mind what is absolutely necessary for supporting the idea behind the venture.
Planning, patience, and persistence is the key to the success of a start-up. The aforementioned stuff is just good business sense. Stay tuned for more!
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