If you have a great idea you want to introduce to the market, building a startup company is one great way to make it happen. Startups have gained popularity these days, especially as more new entrepreneurs are entering the market.
Funding sources have also increased, with venture capitalists and startup accelerators leading this modern trend. If you don’t have access to VCs or large investors, you can even take out loans from an authorised money lender to get the capital you need.
But not all startups succeed. Many of them actually don’t make it to five years because of poor planning. Don’t let your startup be one of these statistics. Consider these five questions first before launching your product.
Is it something you can talk about all day long?
As a founder, you will find yourself talking to a lot of people – especially investors – about your startup. Can you talk about your product, your value proposition, and your business model repeatedly to many different people every day? Most importantly, are you willing to talk about it in a way that will convince people with money to support your startup?
If you’ll never get tired of talking about your startup idea to anyone, you’re on the right track as a founder. You have the guts and the determination to succeed.
Is it going to solve a legitimate problem?
Your startup idea must solve a real problem that people are facing. You cannot invent a problem and sell the solution for it. You must solve an existing one.
More than that, the problem must actually be something that does not make life easy. Your startup’s aim must be to improve the quality of life of your clients by addressing a specific pain point. That pain point could be something as mundane as having no time to prepare food or something as serious as sustainable manufacturing.
Whatever problem you choose to solve, though, ensure that it makes a significant impact in people’s lives once they start using your solution.
Are people willing to buy it?
Your solution may be unique, innovative, and the first of its kind in the world, but are people willing to hand you their money? Can you justify that your product is worth the price you will charge for it? And will people think that your product is worth every dollar?
Do your market research thoroughly as part of verifying your startup idea. If you think the market is willing to give you a shot, go ahead. Launch your product and see how people will respond to it.
Is it technically feasible?
No matter how world-changing your startup idea is, you have to be able to make it happen if you want it to have value in the real world. If it’s a product, can you find a maker, factory, or manufacturer to build it exactly to your specifications? If it’s a service, can you execute it with the resources available to you?
How much will your idea cost to execute?
If your startup idea is technically feasible, how much will it cost you to bring it to market? How much will you need for marketing before launch?
These questions are equally important so you can know how much funding you’ll need from investors. Also, your costs will influence the pricing of your product or service.
Building a startup takes time and lots of hard work. But if you carefully consider the questions above, you can refine your startup idea and make it work better. Now, go ahead and make your dream company a reality!