Fundamental Components of a Business
The start-up scene is a very dynamic and exciting new frontier, full of opportunities and profit for those that can come up with something newer, and better and more innovative. But like the Gold Rush, this means that competitors will be rushing in from far and wide to get a piece of that lucrative new market. So how do you set yourself up for success the best you can?
Here are a few fundamental factors that can give your business its best chance.
Deconstructing Your Idea
First off, you want to deconstruct your idea down to its base components. And you can start off by defining the aspects of your new venture according to the categories below. Generally you may want to consider, what mega-trend is your idea contributing to, what change does it instigate in society, have you done all your necessary research, what resources you already own that you can leverage to get a headstart, and is the timing right for your new business venture. Let us get started!
Pro Tip: It's always a good idea to deconstruct big disruptive business models like Airbnb and apply the findings to your own business.
With the variety of options you have out there, it’s always good to know what to go into.
Mega trends track large changes to society. And a changing society will create changing needs and opportunities. Get an idea of what the world and the market will be in need of by studying the mega trends of your society. Is the market getting saturated? What is the next big thing?
There is also a nice tool called trendsmap.com
, which shows you the latest trends from Twitter, for anywhere in the world.
You should also look into new and upcoming technology that could enable or create these changes. Y Combinator has a very helpful list
of breakthrough technology and sectors, their request for Start-ups list, that are in need of innovation and evolution by enterprises business people such as yourselves. Go on and take a look.
Identify a problem that needs solving or a gap in the market and get to it. Social businesses and other businesses that can provide value to society are on the rise and you can see why. Making positive changes in the world gives your business a higher purpose than just making money. You are also changing the lives of others for the better.
To be change maker, you must be relentless. The setbacks will be plenty and establishing a social business places much more constraints on you than a normal business would. Find something you are passionate about and dedicate your business to it. Find a win-win situation in which you can instigate positive change as well as make a profit.
It is not easy going, but if your business creates a change in the world and in society, chances are it’s going to stay.
Research & Data
The beginning of every venture must be based on extensive research. Which is a no brainer right? You need to know the market, who your consumers are, who should your consumers be perhaps, who your competitors are, and what ideas have been tried and tested before. What were their success rates, etc. Only then can you get an idea of the climate into which you are bringing your idea into. That in itself can have a large bearing on success. Always be prepared.
We wrote in an earlier article that it does not do to create a full fledged business plan too early on. But that doesn’t mean there aren’t thing you need to know. You must do your due diligence on things like your Buyer Persona (who your clients will be), customer acquisition costs, and a go-to-market strategy. All of which are subsections that you can find in the PANDO. Canvas
here to help you get started and figure out what is the information you absolutely need before beginning your venture.
Leverage your resources effectively. There is no point pouring money into something that isn’t planned and targeted so that it can achieve the best results. You have business contacts? Then use them. Contacts are a valuable resource that can open doors for you in many places and smoothen the course of your new company. Planning to use social media marketing? Then use all the available tools out there for A/B testing, market segmenting, etc. Identify a specific target audience and aim your marketing towards them to achieve the best results instead of letting your message dissipate into the clutter of information that is the Internet. Need some machines? Then lease instead of buy. There are many ways to leverage your assets but the idea is to utilise what you have as efficiently and as effectively as possible.
And last but not least…
Bill Gross in his Ted Talk “The Single Biggest Reason Why Start-ups Succeed”
concluded that the most important factor in the success of your new venture is, TIMING. This one factor can make or break your company. This also explains why some of the above factors are so important.
The market must be ready for your idea. Consumers must be ready and in need or want of it, and so must your suppliers in some cases. He gave the example of Uber, which came at a time when many drivers were looking to make some extra money. This helped them to get drivers into the system to make the business model work.
Timing is everything. All else is secondary.
So now, armed with these fundamentals, you can begin to pave your way towards making the world a better place and revolutionising the industry you are in.