People often have great ideas but usually are unable to turn them into reality. Even though they have the resources, the talent and skill to make the ideas work but they often end up falling short. What is it that often hampers great ideas from becoming a reality?
It is a lack of proper research and planning that often ends up stifling the evolution of the start-up. To counter that is extremely important that the start-ups keep the following questions n mind before embarking on their journey of starting a new Start-Up.
Figuring out the problem your Start-Up is addressing
Understanding how your product and service will help to solve the problem faced by your target market is a great starting point for your Start-Up. A better understanding of the changing needs of your users will facilitate your quest to come by with the features most desired by your respective consumers and result in a product or service that has value and thus will help you better monetize your product or service.
Knowing the Size of the Market
After figuring out the pain points you will be addressing, the next step is to figure out the size of your target market. This will help you understand what size your business will be if you acquire 50% of the market. Furthermore, it will provide you with an idea of how effort will be required to maintain or acquire market share.
Understanding your Competition
Knowing what your competitors are doing in the market can provide great insight on what your Start-Up should do to get a foothold in the market. As it will help you figure out whether the product or service you are planning to offer can compete with those already in the market. Furthermore, what is it that your competitors are not offering that you can offer and can get a foothold in the market?
Do you have the capacity to solve the Problem?
Once you have analysed the problem you need to solve along with the market and your competitors, it should give you an indication of what you can do in terms of alleviating the pain of the consumers. Do you have the desire skill, expertize and the capacity to deliver a solution that is demanded by the consumers or it is something that you cannot guarantee. If it is the latter, then it might not be the best idea to go ahead with your Start-Up.
Finally figuring out the question of Funding for your Start-Up
If indeed you have the capacity to deliver a viable solution that will be financially viable for you in the current market place, then the question is do you need funding to get the operation rolling? Or you have the required funds to go ahead with your Start-Ups. If it is the latter then you have to figure out how much equity will you give to the investors?