What are the common denominators among the young now? Certainly the desire to create a special small project for each and every one of them, but it is not that simple as some might expect.
One of the most common things among young people now, is you find them looking for funding, as if the idea of their projects wouldn’t come to life without hundreds of thousands or even millions of dollars, and everything they have is a phone number which they give you so if you like the idea of their project - which some may not even mention! - you can contact them to give them money.
The owners of those actions, unfortunately, do not know anything about the business world, but think that the financier or investor is Aladdin, who will provide them with a happy financial life. Of course, all of this is simply an illusion.
Emerging companies are not built on daydreams, but on the principles and rules of thought. I will describe to you four of these principles, including the four most important challenges that must be overcome in the early stages of any start-up company:
1. Full-time dedication to the project 2. Find people willing to take the risk with you 3. Develop an initial prototype 4. Apply a pilot project Here they are: 1. usage phase (from 6 months to a year) 2. Purchase stage (from 6 months to a year) 3. economy stage (from 6 months to a year) 4. customer acquisition phase Remember that the quest to reach the fourth phase will be in two years, and probably will turn your hair color to the white color due to the large number of what you learn from the lessons during that period. Which of those challenges / stages you find yourself now?
Product development requires a lot of dedication. In other words, you have to work on your project - especially in the initial stages - as if you are working full-time. Thus if you trust the idea and the possibility of its implementation; Start immediately by preparing a clear plan for it.
In rare certain projects and disciplines only you can begin to create your company alone. But the usual case that you need an entrepreneur to form a team able to complete its tasks successfully, in addition to the availability of a lot of commitment. As I mentioned to you, it requires full dedication to the project, but this does not mean that you abandon your only source of income - even if you have multiple sources - because that is certainly not in favor of your project. So it is very difficult to find people willing to risk with you, but do not give up; because if no one except you contribute to your idea then it means that the idea is not good enough, so rethink and develop your idea.
This step is a real test of the ability of your product to grow. Despite the ease of preparing an initial prototype, it will show you several important observations to develop your products later, as well as the development of the entire business model; because the initial prototype will help to define the market segment of data collection, and target audience, and determine the value, and other business model sections.
By the way, making mistakes is part of this process! So beware of becoming frustrated If you discover unexpected things after developing the initial prototype and presenting it to the people in the start-up phase.
It is looked at innovative ideas in the real market with suspicion; it's very difficult to get clients to trust your idea, and willing to change their culture and way of life to experience the pilot project which has not been implemented before in any other place. It is a real and final challenge this stage.
Once you overcome these four barriers and challenges, there are four other stages that must be overcome for the stability and growth of emerging companies.
This phase is characterized by obtaining the first users after launching. This occurs after the initial prototype and the pilot project. The goal of this phase is make sure the project / product / service is doing well in the market.
The aim of this phase to validate the business model, and to achieve real income. At that point, you should start gaining first clients; to begin to generating revenue.
The aim of this stage to determine the model gain / acquisition of customers, from which to conduct a variety of different tests between marketing strategies and strategies to win customers, such as Facebook, Google Ads, marketing inbox, etc., this will help in converting potential customers to new customers. At this stage, also, the owners of start-up companies should understand the customer cycle.
Finally, after understanding the ecosystem to gain customers, drawing them to the most appropriate strategies; should the owners of emerging companies to invest with open heart to get more customers. This is the right time to collect the results of all of the above.
Have a business is so tough and you can always feel like you are under capitalized. The things where I almost scratch my head is so many startups have no path to profitability EVER but then it is like it works out for them. Look at Twitter for instance.
Yeah, you have to be so lucky in order to succeed on an international level, but I believe it isn't that hard for a startup to succeed locally, before it begins to expand