Will your startup be smashing, or Is it worth it to invest in a startup? | Business Biceps

Will your startup be smashing, or Is it worth it to invest in a startup?

By Vera Business, For newbies, Investments No Comments on Will your startup be smashing, or Is it worth it to invest in a startup?

Every businessman, founding the company, always going through, if it will work at all. And suddenly, his product would be useless, and all the money spent and efforts will be in vain? Doubts remain even under the most favorable starting conditions. And for good reason.  

«Start-up – is an organization that creates a new product or service of high uncertainty». The Lean Startup” by Eric Rice.  

If a company releases a new product to the already investigated segment, we believe it is not a startup, and expansion of the range of goods or services.  

Startup – is the development of a new direction, and output to an entirely different market. It’s a step into the unknown, a clean sheet of paper.  

You do not know what people are interested in your product. You do not know what they will appreciate it. And what matters most, you do not know what to expect sales and whether they will do.  

The majority will not agree, but it is important to emphasize.  

You say that 100 years are familiar with the target audience, which is exactly appreciate your product, and, in general, your friends and their friends – these are the people who first lined up for your product. Well, if it’s true. But this is not always the case.  

My own five-year experience of working with start-ups shows that the most difficult thing is to those who believe they know everything.  

This position prevents a sober and detached look at your product and use the main marketing approach, which can and should become your engine at the beginning.  

The main thing here – is the experimentation and hypothesis testing.  

Try saying, “I guess that my product will interest your target audience N» or «I guess that for this target audience suitable product format N».

Do you see the difference? Do you still use your previous experience (if you have one), but leave space for other assumptions that may be correct.

If your initial hypothesis was confirmed – it is remarkable, there is a reason to rejoice. If not – do not stop, create hypotheses. Eliminate uncertainty.  

Strive to ensure that you have had more points:

  • enjoy your product for men or women, adults or young, modern people or conservatives;
  • What product benefits most valued certain group of customers;
  • how to perceive the product as compared to other alternatives in the market;
  • etc.

You will have a lot of assumptions. You will have the book instead of the hypotheses of the business plan, and countless experiments, instead of in a straight line movement.  

But after each test you will have the facts to emerge, market-driven, not by your imagination (or past experience). And even if the next experiment shows it is not what you expected of him, it would not matter, as the next step in finding the right solutions.  

This layered approach is the classical methods of studying the market, competitors, target audience. I’m not surprised anyone if I say that the chances of start-up success increase if you have a great team with an experienced marketer.  

But the main thing – is that no one knows whether your startup successful.  

You may be able to immediately find a gold mine and your company will fire as fireworks. But tell me frankly, do you believe that the chances of that are high?  

It may happen that your project will grow gradually. Thanks to the efforts of your team.  

And, perhaps, a startup will not last a year, as is unfortunately the case with 90% of ambitious projects.  

What can be done? Without stopping to test the hypothesis, study the environment and improve your chances. Then sooner or later you will find the right combination of factors, which will become the success of your project.  

I really like the idea that I’ve heard from Professor of the Wharton University.  

The idea is not important for a startup. The main thing – as you will be working with uncertainty.  

Do not be afraid of uncertainty, dive into it, use it as a field for experimentation.