So, you’re tired of working for somebody else and most importantly, you have an amazing business idea that will solve many people’s pain points? A startup is what you should invest all your energy, time, and money into, that’s for sure. However, before you turn over a new leaf and become an entrepreneur, there are some things that you should bear in mind.
That’s why we’ve compiled a list of the most common questions about launching and running a startup successfully, together with useful answers that will come in handy and help you overcome some of the most frequent growing pains.
How to identify product/market fit?
Marc Andreessen, a famous entrepreneur, software engineer, and investor, coined the phrase “product/market fit” and according to him this means “being in a good market with a product that can satisfy that market”. This, basically, implies that if you want to succeed, you need to understand a specific group of people – a particular market, needs, and provide them with a quality product that will solve their problems.
The best way to define a good market would be by saying that it’s the one that is large enough or the one with a big demand for the particular product or service that you’re offering. To put it in a nutshell, product/market fit is essential to the success of your startup. It can be hard to determine it, but here are a couple of tips:
- Create detailed buyer personas, that is general representations of your ideal customer. This will allow you to understand the people you’re trying to attract with your products or services, their problems, and develop features and functionalities that will address their pain points and fulfill their needs;
- Focus on a single, important value proposition, or in other words, tell your target audience what distinguishes your product from the competition. It’s vital to insist on and highlight a silver bullet – a feature or functionality that your prospects desperately want, and that only your startup can provide;
- Tell a story and build credibility. By creating a sincere, relatable narrative about your brand, you’ll communicate your brand’s message more easily and naturally, as well as avoid that annoying sales pitch. Make sure to incorporate your target audience’s needs into the fabric of your story, and point out why your product should matter to them.
How to register for an ABN?
After you’ve established whether your products or services are eligible for the existing marketplace, it’s time to deal with some technical details. There are several steps for setting up your startup, and applying for an Australian Business Number is one of them. This 11-digit number will identify your business to the government, confirm your business identity, obtain energy grants credits, and secure an Australian domain name, among many other things. Since launching a startup is a time-consuming process, it’s a better idea to leave everything concerning the ABN registration process to a reliable agency that will take care of all the paperwork, while you can focus on some more creative stuff.
Who’s your competition?
Knowing and understanding your direct competition is equally important as knowing your target audience. You will be competing with these companies for the market share, and it’s extremely important to know all their strengths, weaknesses, and the methods they use to attract customers. A meticulous competitive analysis is necessary if you want to gain a competitive advantage. This is especially the case when it comes to pricing, as new startups need to be very careful when establishing their prices.
There are numerous methods that can help you research and spy on your fiercest rivals, and social media is one of them. By observing how your competition interacts with their audience, you can get some valuable insights into how to build meaningful relationships with your customers. In order to keep pace with your competitors, it’s also crucial to be timely informed about their new products or services in order to try and top them.
How to create a sustainable business?
90% of startups fail. This gloomy stat doesn’t have the purpose of deterring you from becoming your own boss. Quite the opposite, you need to know what you’re up against when you’re planning your business future. Establishing a startup capable of a long-term growth should be your first concern because many business owners don’t think or plan beyond the first batch and making some profit.
The trick is to create a clever strategy that will enable you to expand your business and generate customer demand. If you’re looking for investors to help you with your startup, they will most certainly want to know where you see your business within at least 5 years, and how you plan on keeping it sustainable.
The answers to these 4 questions can make a world of difference for the success of your new startup, so take time to carefully study them.
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