Well! Start-ups are a big kick to get succeed in these days. These days many people are opting for Start-Ups. You must have also thought about it. But is thinking enough for Start-up?
In this article we will get to know about the way or pattern to think the idea of our business. Lacks of proper understanding cause failure to many Start-ups.
Identify Solution to problems:
When you are thinking of any idea, it should come out from any problem. For example Founder of Redbus came up with the idea when he couldn’t get a bus seat. Similarly, Ola Founder has problem that he waits for cans for hourly/out-station travel.
But having problem is not enough. You should fulfill below mentioned criteria for a successful Start-up idea.
1.Who need it?
Is this the problem only for you or for society at large?
This is needed to know whether the problem you are facing is problem for all or not.
2. How badly do they need it?
We lived in India where people easily find cheap substitute of their problems. So, it is required to know whether it is a serious problem for people or substitute is possible.
3.Will they buy it from someone new?
Is there any other player in the market who is providing the same services in the respective field. If yes, what is their SWOT.
Once you find out the problem existing, next step is to find our Painpoint.
Painpoint should be large or critical. While assessing your idea try to get answer of below questions:-
1. What is pain point? – It should be the point due to which people are suffering.
2. Who is it for?- What is your market consumer? Professionals, middle class or many more.
3. What is the solution?- What we can do so that this problem get solved or painpoint can be eased.
Who else is doing it? –
1. Competitor in the market.
2. Is your solution different?- If there are already competitors in the market what makes you different from them.
After finding out the Painpoint and Solution, it is required to know the market. Who is your market? Who are your consumers? It is very much required to understand about your consumers in the market and to understand the market segmentation.
Let’s have a quick view on Market Segment:
Demographic: Men, Women, Adult
Geographic: Metro cities, villages etc
Behavioral: As per the need of people, Electronic, Fashion etc.
To target customer always remember:
1. Clear benefit to customers what they need;
2. Are these different in mind of customer;
3. How large the segment and how fast it is growing;
4. Is horizontal integral possible.
Apart from the above it is required to know the productivity of market by:-
1. Size of market- Whether your market size is large?
2. Level of competition- how many competitors are already there?
3. Legalities involved- what are the legal requirements in the respective business
4. Policy & Economic factors- Which political factor influenced the business.
After this, knowing the Environmental factor is also required to understand. The explanation and detailed about it we all have already known or the same can be known easily by making it google.
1. Demographic Factor;
2. Technological factor;
3. Socio-Cultural factor;
4. Economic Factor;
5. Political and legal factor
In last, you should be aware about your competitive Rivalry. To know competitive rivalry, you can follow these five points given below:
1. Threat of Entry– Is market entry easy? What advantages other have over your business such as infrastructure, cost setup etc;
2. Buyer Power– Does your buyer has buying power? Can your buyer increase the value of business?
3. Threat of substitute– How easy it is to find the substitute of you?
4. Supplier Power– You definitely received product from any of the supplier. Your product value is depending on the raw material purchased from the supplier. If your supplier increases the price of its raw material does it affect your business?
Once all these aspect are covered by you, you are ready with your idea of Start-up. But can you opt for the Start-up Registration just after getting the idea? No, it is required to get registered with Registrar of Company in Form of LLP (Limited Liability Partnership) or Company. Registered Partnership will also work. Usually people unable to understand the most suitable form of business for them. It is required to know. For this, it is advisable to consult any professional or wait for our another article with details of legal formalities to be completed by start-ups in due course.
Hope you enjoy reading the article. We would like to hear your business ideas on [email protected]
Disclaimer : The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Kindly consider this article for informative purpose. There is no Professional Advise is given to anyone. In no event I shall be responsible for any loss or damage in any circumstances whatsoever resulting from or arising out of or in connection with the use of aforesaid information.