“The success of the young entrepreneurs will be the key to India’s transformation in the new millennium.”- Dhirubhai Ambani
Want to kickstart your epic startup journey and see your entrepreneurial dreams turn to reality? In this AVCOE blog, we discuss a 5-step roadmap to launch a profitable startup for early-stage entrepreneurs.
Today, it’s a fact that 90% of startups fail to create profitable systems due to inefficient cash flow management, building a product for a non-existent market, ineffective adaptation, and quickly giving up. So, what do seasoned entrepreneurs do for survival and profits? Among the many potential answers, there is one that is an overlooked understatement: the first steps you take toward creating your start-up will ultimately determine whether it succeeds or fails.
The specific focus of your startup, the exact problem you’re trying to solve, the particular market into which you’re entering, the product you’re intending to build as the solution to the problem, and the economics of your business model all must be decided upon and figured out before you start building your startup.
Here’s a 5-Step Road-Map for successfully launching a profitable startup:
The Focus
What is your startup fundamentally about?
The focus of your startup is the first and foremost step you need to figure out to lay the right foundation. Only a solid focus can support a strong start-up. One of the most crucial aspects of creating a successful start-up is determining the ideal intersection between your abilities (skills), your interests (passion), and what can get you money. Figure out and write down these three key elements. Address each of them properly to decide the core of your startup’s focus.
The Problem
What is the existing consumer pain/need?
Before you launch any sort of product or service, it’s important to determine the specific problem faced by your customers that your startup will seek to solve. Figure out if that consumer pain point is monetizable by conducting thorough research and survey. Take feedbacks and analyze if your startup can actually help solve a crucial pain point of consumers. If not, you can also consider repurposing your startup and develop action plans that can actually make consumers want your product/service.
The Market
Can you build a real business?
Alongside identifying the focus of your company and figuring out the specific problem that it will solve, it’s essential that a market for the solution you intend to create actually exists. To understand the market, you need to calculate your market size. This can be done by thorough research and taking statistics into consideration.
The Solution
What is your minimum feature set?
Having completed the second and third stages, you should now possess a number of key facts about the monetizable pain upon which you’re focusing as well as some initial ideas concerning how your product/service should look and function. The next step involves getting a bit more specific about your product/service by creating a minimum feature set (MFS) hypothesis. The MFS represents the core one or two features for which your customers would be willing to pay.
The Revenue Model
What is your business model? Can you scale it?
With your focus, problem, and product figured out and your assurances that a market exists for your solution, your next step is to calculate whether your business model for your startup is capable of getting your product to market, becoming profitable, and increasing in scale.You need to ensure that your business model has the potential to grow your startup over time with proper cash flow management.
With these five essential steps taken care of, the next actions involve raising financial capital, building your product/service, achieving a successful product/market fit, and instituting a repeatable and scalable business model.
If you liked this blog, share it with your fellow aspiring entrepreneurs you know and help spread the word. Stay tuned with us for more entrepreneurship blogs.
For more information, visit:
Website: http://www.avcoe.org/
Youtube channel: https://www.youtube.com/channel/UC6q-pnqVXMBI6gTevAKL0Gg
Facebook page: https://www.facebook.com/AVCOEngg/
Instagram page: https://www.instagram.com/avcoeofficial/
0 Comments