Whatever may be the source of motivation for you to be an entrepreneur, the definitive purpose of any of the startups is to address a problem that is being confronted by people and provide an attractive, achievable and affordable solution. The success probability of your solution is a function of proper planning on each area and flawless execution. Premature execution of startup without having proper plan is the main source of startup failure.
The proper sequence for your startup planning is to understand the problem, prepare a solution for it, know the market base, plan on each of the knowledge areas, understand the legal requirements, decide the marketing strategies, and prepare a revenue model, plan for scalability and at last look for funds requirements for expansion. Improper planning on any of the area will definitely lead towards failure.
The benefit of this planning is to have a long term trajectory of your startup objectives. The other major benefit is to get the sustainability limits of the solution without funding needs.
Here are the 9 signs of planning that make you ready for startup journey-
1. Problem Analysis – Driver for the short and long terms objectives of the startup is the solution to any existing problem. So to have a clear understand of the problem is essential for defining the solution for the same. Proper analysis of problem statement defines the guidelines for possible feasible solutions and comparison with the existing solutions.
2. Solution – Product / Service – To delimit and comprehend the best feasible solution to the problem is the next vertical of planning trajectory. For new solution, acceptability limits are defining criterion for success probability. So the best practice to evaluate the potential of your solution is to design a prototype and based on the feedback alter the solution as per requirements of time.
If the solution is betterment in the existing solution, it’s important to do the comparative study of the new concept against the existing solutions to check the acceptance of new solution. The comparative analysis of positives and negatives of both the concepts will also provide a direction to think for improvements in future.
3. Market Base – The greatest challenge for startups is to understand the market base of their product or service. Defining the size of market base helps in deciding the marketing strategies to capture the same, Answers to these questions will help you to know your targeted market base-
- Who is facing the problem? Categorize the market base as per age, gender, region, time etc.
- What will be the benefits to targeted market base by your solution? Ease, economical etc.
- Why your solution is better than the existing one and people would be ready to pay?
4. Planning on all Knowledge Areas – Planning of startup is critical as the future success during execution is proportionally dependent on the accuracy of planning on all the knowledge areas involved in the startup. Scope, schedule, cost, quality, manpower, communication, purchasing, risk, integration are the basic knowledge areas that require attention of entrepreneurs.
The outcome of startup planning is that it would give proper direction to each team member during execution phase to avoid any of the issues. The mismatch in any of the defined base line will raise a red flag for attention itself. More is the precision of planning; more are the chances of startup success.
5. Legal Requirements – Legal requirements are again a mjor area that requires attention of startups. Law changes as per your business model, so it’s good practice to know and define the legal terms and contracts to avoid issues in future.
Here are some of the legal requirements that are generally missed.
- Founders and stakeholders agreement
- Payment contracts with vendors
- Registration process and taxation issues
6. Marketing – Planning the marketing strategies to reach the targeted consumer is the next planning vertical. The success of a startup often depends on its approach to market capturing. Unfortunately the vast majority of new entrepreneurs have little to no experience on marketing or managing a marketing budget. This dangerous contradiction could be avoided by defining the proper marketing strategies.
- Strategic Positioning, Web or App Presence
- PR, Blogging, SEO Strategies, Youtube Videos
- Advertising Strategies
7. Revenue Model – Self-sustainability of any business model is the only vertical that determines the future growth of startup. If the startup business model generates sufficient amount of profit, it attracts investors for scaling. So, to plan revenue model for your startup is necessary to estimate the life span of its sustainability. Based on the product or service you can plan your revenue model to generate money:-
- Free Model – Like facebook where you give free services and generate revenue by ads.
- Cost Model – Like any of the service/product that generates revenue by direct involvement of money.
- Mixed Model – Like linkedin where some of the services are free and some are cost based.
8. Scalability – Scalability plan for your small size revenue model is the next priority on startup planning. With a limited revenue model the chances of its survival in the market is only till the date no big giant enters in the market. So to have a scale up plan that is suitable to capture the entire market is required.
- Scalability by enhancing presence
- Scalability by growing market base
- Scalability by introducing new verticals
- Scalability by mixed model
9. You need Funds – Funding is a concept that is understood in the most wrong way. Investors are looking for those business models that are sustainable and have scalability. So, if you have all the above planning properly and executed as per the defined lines, you are in need for funds to grow your business model.
So if you are ready with all the 9 verticals that indicate you are ready for your startup. So, execute your startup as per the defined baselines and get on the success track.
Wish you luck for your startup. Stay connected to know more.