Entrepreneurs IQ
A startup is a company that is still in start-up mode or is just getting started. This means it is operating with an entrepreneurial spirit, watchful of opportunities and upcoming changes in the industry. It typically refers to a new business venture under which growth has not yet outpaced external support or major investments. Startups are the new-age businesses that are taking over the world. They are more than just businesses. They are an idea, an ambition, and a dream.
One of the hardest parts of starting a new business is explaining what you do and what values guide your company. Putting faith in a product or service takes a level of confidence that isn’t always enough for outsiders to invest their time and energy.
To be successful in the startup world, companies have been quick to jump into an ecosystem where they can garner allies from other entrepreneurs, investors, business people, mentorship groups, incubators, and accelerators alike. In this environment, success stories are often flooded with images of pro-like group shots where Gotham’s–the capes worn by caped crusaders–can be seen in the background. Another way to be successful is that the founder needs to deeply understand their customer’s pain point to deliver a product that is better than anything else in the market.
Startups are usually a huge risk, and this is why it is important to be able to explain your startup to your mom. This way, she will know what you are doing and understand the risks that you are taking. You may want to construct a narrative that not only captures what your company does but also who you are as an entrepreneur and how it will affect the world moving forward.
There are a few things that you should remember when explaining your startup to your mom:
- What problem does your product or service solve?
Sometimes, the hardest question to answer is not what you do but why. Your first step to marketing any institution-based business is reexamining the fundamentals of your company’s purpose. A new business needs a “purpose” more than one needs profit statements. There are many products out there competing for the same customer base. If you are just trying to be “better” than other corporations, then you are setting yourself up for disappointment since that competition will lead only so far before market saturation occurs.
- Do you have enough evidence of demand for your product or service?
Regardless of the type of business you intend to start, you will need to identify and address the need for your product or service. It is essential to have evidence of how much people want it and how much money they’re willing to pay for it. There are a few ways that you can do this. The first is through customer needs analysis. This is a process that identifies the needs, wants, and problems that customers have in a given industry or market. Conduct an external and internal study of your potential customers. This research will show you what customers are looking for and how much they’re willing to spend on your products or services. Once you know this, you can design your business model and make sure that all channels (such as social media) are aligned as well as the marketing team.
- What is the business model?
A business model is a plan or design for how a company or organization might make and sell its products or services, and how it might make money in the process. A new business needs to have a novel way of approaching its market space to succeed in the competitive industry. The company needs to identify the customer segments they are targeting, their current competitors, what they offer, their pricing scheme, what they need from suppliers to operate efficiently, their payment scheme for either customers or suppliers, their target markets’ product preferences. Some companies have more than one type of business model depending on what they do. Business models can change over time as technology changes and new opportunities arise.
- Who else is involved in the company?
A new business will need to think about how they are going to stay on top of the competition. This is not an easy task considering new businesses are popping up all over the place. There are many times when you will feel like your business may never get off of the ground because of the constant fear of being left behind. While it can be stressful, it is important to remember that you are not alone in this journey. There are always people who have had similar situations and they will be able to help you along the way. It may feel like you’re doing everything on your own, but there is always someone who has walked in your shoes before and can offer up some words of wisdom for when things go wrong or just aren’t going as planned.
