Did you know that out of ten IT startups, only one survives? How to become the one who is better, faster, stronger? How not to get caught up in a bureaucratic routine, not to lose financial backlog, to create a product that will be in demand in the market and become a leader in its business niche?
Many of us asked similar questions in the process of launching our business. The prospect of uncertainty frightens some, inspires others. But regardless of which group you belong to, you need to consider a number of important points in order to move from a number of IT startups to a fully functioning and profitable business.
Offer a solution to the problem The most important thing for a startup is the correct market segmentation. You must clearly understand what problems your product helps to solve, and what target audience it is designed for. Nobody needs 1001 Facebook, especially since the number 1 on this list copes with its task with a bang. A complex, non-user-friendly project will probably also not find its fans in the proper amount. To assess the prospects of your product, it is necessary to identify the problem of the potential target audience and try to solve it as qualitatively as possible. Remember how Android appeared, because by then there were already Symbian and iOS. But Android has found its niche, becoming a more convenient alternative to Symbian and a direct competitor to iOS, the closed structure of which was intended only for Apple devices.
And how not to recall the fierce competition among the three search giants Google, Yahoo and MSN / Bing? Probably no one remembers such search engines of the early 2000s as AllTheWeb and Altavista? But once Google was a “garage” startup, but a special approach to creating a search service allowed it to occupy more than 70% of the global market in its business niche. Google solved the problem of finding information on billions of pages better and faster than others, offering more relevant results, and was quite successful.
Don’t miss out on trifles It would seem that the subject matter of the product is known, the target audience is defined and studied, the developers are professionals from Capital Letter, the leader is a fan of his craft and an ideological inspirer. Doomed to success? No matter how! It’s not enough to gather the best players – you still need to teach them how to play in the same team. In the case of a startup, job responsibilities are a little blurred and everyone can and should do things not quite typical of his usual specialization. Developers need to understand the marketing component of the product, and marketers understand the basic aspects of development. This is not about how to get a salesperson to program. Remember, “for everything that we do, we will be responsible together!”. I’m about this. Success or failure depends on each link of the startup team. Do not be afraid to change. Probably, before launching the product in development, more than one month of analysis and calculation has passed. A detailed business plan for the development of the project is not a dozen pages. A plan is good and valuable, but life makes its own adjustments. I have not seen a single business plan that would be 100% consistent with reality. And this is normal. The plan operates with key parameters, but it does not provide for operational changes and data obtained in the real market, empirically. Growth speed is important Fast growth is an indicator of choosing the right idea and business strategy. In addition to the fact that explosive growth directly affects the company’s income, it also encourages investors to invest in your business. What better will show the potential than the dynamics of the project? In addition, a startup always has a risk of not having time to break even before the initial investment is spent. If the growth is not sufficient, the business can simply be drowned out without reaching the planned profitability indicators. Difficulties exist in order to overcome them. Did you know that Apple balanced on the verge of bankruptcy in the late 90s, and in 2014 its profit amounted to over 39.5 billion dollars (1st place in profit in accordance with the Fortune 500 rating)! Just a couple of decades ago, few believed that the revolutionary ideas of Steve Jobs could bring the company out of the protracted crisis. But the main guarantee of success of the founder of Apple is faith in yourself: your ideas, strengths and capabilities. When a new line of products is introduced to the market, no matter how wonderful the creator plans, it is far from the fact that the target audience will enthusiastically meet it. It is important here not to give in to difficulties, but to prove that your product is more convenient, reliable, safer and simply better than analogues.