In the last few years, technology has progressed tremendously and it’s still evolving a rapid base:
Present Business Scenario:
– Rapid Technological Progress
– Support from Banks
– Support from Government
– New Policies & Schemes
– Funding Provisions
– No Income Tax for first 3 Years
– Relaxation of Labour Laws
– Access to Information
– Relaxation of Bankruptcy Act
– Startup India Hub
– Special Support to Students
Identifying the Idea:
The first step for an entrepreneur before starting a new company is to find the right idea for his or her startup. Your aim should be to solve a problem that exists. Trying to solve for pain points that individuals or businesses face, can help you arrive at your venture idea. You also see how some founders worked on the pain points that they observed to build their businesses:
- Saavn: South Asian music digitally not available (B2C business)
- redBus: Not being able to get a bus ticket at the right time (B2C business)
- Freshdesk: Experiencing poor customer support services (B2B business)
- Science Utsav: Not being able to understand Science subject
- Campus Connect: Experiencing poor accessibility to campus-related information
Assessment of the Idea:
Identifying the problem or the pain point you are trying to solve is an important step in validating your idea. You want to be able to clearly express a problem, that you or others are experiencing regularly. You should be able to write down the problem that you are solving in a simple statement.
The next step is to understand whether this problem is a major one for your potential customers or not. If you build a startup that solves a problem, but not a serious problem, people might use your product, but never pay for it.
So to summarise, you should try and answer the following questions when you are assessing your idea:
- What pain point are you trying to solve?
- Who are you solving it for?
- How are you trying to solve it?
- Is anyone else doing it?
- Can you do it differently from them?
- Can you charge your customer? If so, how much?
For Example: Urban clap Company
Understanding your Target Segment:
When you start, you are tempted to reach out to as many customer segments as you can – but is that the right strategy? Should you stay focused, or spread yourself across segments?
Identifying the right customer segment for your venture idea is important. Equally important is the ability to dissect the customer segment. Doing this allows you to narrow your focus on the right segment and thus market your products to a focused audience, with predictably better results.
In order to identify the target segment, you should:
Segment your market correctly, based on geographic, demographic and behavioural traits
- Arrive at the value proposition of your product or service and the customer’s willingness to pay
- Bring out an offering that is dramatically better than the current options available in the market-being just slightly better may not be very helpful
- Assess the size and growth of the appropriate market segment
- Once you have established yourself in a particular segment, you should consider your ability to enter adjacent segments
Sizing the Market:
Now that you know how to identify or probably have already identified your target segment, do you know how large this target segment is? As an early step, it is extremely important to understand how large your market is and which factors are driving its growth
Analysing Environment and Competitive Advantage:
Strategic analysis is the main ingredient to determine the appropriate strategic choices, which is important to pursue environmental changes, in order to identify strengths and weaknesses in the Organization’s internal environment and discover the opportunities and potential threats in the external environment.
Building a Legal Foundation:
- Individual
- Firm
- Limited Liability Partnership
- Company
- Trust
- Co-operative Society
- Non-Governmental Organization
Understanding Financial Basics:
What Are The Basics of Finances? The basics of finances include the process of managing your money and how you make use of the funds you are generating. Finances include a collection of areas like credit, investing, banking, assets and liabilities, and more. Each being essential to your overall financial health.
Introduction to Business Planning:
Creating an effective plan, A business plan is an essential roadmap for business success. It describes the direction, the company is taking, what its goals are, where it wants to be, and how it is going to get there.
Fund Raising and Valuation:
Fundraising is the process of collecting money as donations for a cause from individuals and establishments. Venture capital (VC) is a type of private equity financing offered by venture capital firms to startups and companies with high growth potential or that have demonstrated high growth.
Pitching & Term sheet:
All term sheets contain information on the assets, initial purchase price including any contingencies that may affect the price, a timeframe for a response, and other salient information. Term sheets are most often associated with startups.
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Disclaimer: All content provided on this blog is for informational purposes only.
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