Entrepreneurship is the act of starting a business. A start-up entrepreneur is in the early stages of business. Historically speaking, the start-up has been the brainchild of engineers or developers looking to build technology that will solve a problem. These individuals must take risks, essentially build something out of nothing, and be willing to persist through failures. Navigating the life of a start-up begins with defining your business objectives and ends with feedback, then the cycle repeats until the start-up is mature.
Determine Your Goals
When a company gathers to list its objectives, it starts with a mission statement. This summary would tell any investor the purpose for which this company has gathered. If the group wishes to share their mutual appreciation for quality pickleball paddles, this is the time to mention it. Next, is the vision statement. This will answer the question of where leadership sees the business in 5-10 years. What will they be doing in the best- and worst-case scenarios?
The following step that combines these two statements is strategy creation, where management solidifies the finer details of how they will bring value. Finally, once they define the best tactics for bridging their present mission with their future vision, they must set start-up goals that will best measure their conversion of that strategy. In other words, if the company strategy for a federal consulting company is to have a contract at each federal agency, then they would set goals for selling to one agency per quarter until they achieve 100%.
Deliver a Niche
When the start-up team is assembled, their duty is not only to define the product but also to test and redesign it simultaneously. As a result of this effort, the final good or service will have experienced conscientious development, where multiple parties confer over the course of time with a diverse set of eyes. These developer events will be tailored to finding the company’s overall niche.
Having a niche means a unique offering or placement in the industry. For instance, Shopify is a website and payment platform. However, they have the niche of offering exclusively drop services for small business owners who cannot maintain their inventory. This could be due to a lack of storage space or complete disinterest in holding onto physical products. Drop servicing is the digital answer to subcontracting.
Design a Product
Designing a start-up product or service is the most challenging of a start-up’s tasks. There are many considerations to take for the management team if they are hopeful for repeat customers. The most important aspect to consider is the idea’s marketability and how it will be received by potential customers. For a negative example, recall that MoviePass is now defunct due to creating a service, buying movie tickets, that was not sustainable.
A minimum viable product, also known as an MVP, is designed with just enough features to satisfy early customers and get feedback on what needs to be improved. This can help ensure that the idea for a start-up product or service is commercially viable and has the potential for success before investing too much time and money into it. The Uber application began with an MVP and, over time, expanded with safety features like notifying friends of your location and the estimated time of arrival.
The wide-ranging success of start-up companies is attractive to investors. Setting up a business with like-minded individuals who share a passion for customer delivery is the ideal environment for triumph. By understanding and acknowledging the pitfalls and missteps along the way, creators can look forward to a more robust and sound solution for end-users.