Tips for Launching a Successful Start-Up
by RAKBANK
You've got an idea, which you think has all the potential to be a successful business venture. Having discussed it time and again with your friends and family, you are strongly considering giving it a try. Kudos! Do not let fear and self-doubt prevent you from realizing your dream.
Starting a new company is literally a journey into the unknown. Doubtfulness, uncertainty and a number of challenges await an entrepreneur on this journey and hence he or she should be comfortable taking on these. Given below are a few best practices shared by successful business entrepreneurs that provide insights to help other new founders succeed.
1. Understand the importance of timing:
This includes not only the time to enter the market but also preparing and keeping everything ready in the backend (including business plan, execution strategy, marketing plan, etc.). Analysing the market trends, competitors, availability of start-up funds before starting your business can help in preventing any last minute surprises. Also, it would be a good idea to understand your personal circumstances.
2. Prepare a super detailed budget and associated goals:
Each area of your business operations should be carefully looked into and considered before preparing the budget. Once the budget is prepared, it should be adhered to as closely as possible. If your business is spending some amount of money, it's important to keep associated goals for that expenditure. For example, if you're spending X amount on advertising, your company should be able to make Y amount in revenue in the next 6 months. Unfortunately, many start-up CEOs tend to be more "big picture" thinkers and tend to ignore this vital part. It would be a good idea to seek someone's help in case you find yourself fumbling here, but just don't ignore this.
3, Stay Flexible:
At any point in the start-up process, new trends, ideas or factors can arise that require you to change your business ideas or plans. Having spent so much time in preparing one business plan and building on that business model, it can be extremely hard to adapt and move into something new. Yet, it is always recommended to keep a watch on the upcoming trends, try and see what changes would be required to incorporate those trends into your business and be unafraid to make those changes.
4. Outline and highlight your competitive advantage:
Many start-ups fail either because they do not have a significant advantage over their competitors or because the competitive advantage is not positioned and marketed in the right manner. Your product or service might be the best in the market but it will hold no ground if prospective customers are not aware of the same.
5. Avoid both under or over capitalization:
A company is considered to be under-capitalized when it does not have sufficient stockholders\funds for carrying out its operations. Similarly, a company is said to be overcapitalized, when its total capital (both equity and debt) exceeds the true value of its assets. An undercapitalized firm can face a cash crunch creating obstacles in the smooth running of its operations. On the contrary, if a business has more money than it can work with, it will be burdened with high interest charges, dividend payments or impossible investor expectations. Hence, it's important to take a thorough look at your finances and borrow or raise only the amount that you think you would be required to reach your business goals.
5. Master Execution:
In the end, it all boils down to just one thing - Execution. You could be having a perfect plan, a talented team and the most opportune moment by your side, but all this can fail if the execution isn't up to the mark. Execution includes not just the launch of your start-up but also the day-to-day mundane tasks that will slowly build your business. This includes timely advertising, handling customer queries and complaints, continuous innovation and more. It would be a good idea to have some seasoned Operations personnel by your side. If not, we recommend you to roll up your sleeves for the hard work ahead.
Starting something of your own can be an extremely rewarding and fruitful decision. You get to be your own boss and can witness the success or failure of your ideas first hand. Just follow the points given above, and you'll surely emerge a winner. All the best!