5 Keys to Success for a Lasting Startup How to narrow your search for a long-term, profitable idea.
By Matt Fore
Opinions expressed by BIZ Experiences contributors are their own.
Harry had a business idea. He was sure he'd be making money within a month but first, he needed to purchase the equipment. The problem was, as it turned out, nobody wanted the product except his grandmother. She was just being nice. He had another idea, but grandma was the only customer interested once again.
While this may seem tragically comical and very expensive, it is a true story and one that is lived out many times over.
The percentage of BIZ Experiencesial ideas that fail within the first five years range from high to astronomical depending on what information you trust, but these numbers could be greatly reduced with a bit of insight and forethought.
Here are five critical criteria to help your BIZ Experiencesial concern succeed.
1. You must love what you do
That may seem an odd place to start as you can love your business and still fail, but this occupation will be your life day in and day out. You will eat, drink and sleep it, so if you don't love it, you are in for a miserable ride.
Can you wake up every day excited about what you are doing to make this world a better place? Can you create a magnetic attraction to your service that is contagious to your potential buyers?
People buy your passion and drive. They purchase because of your belief, therefore your love to serve in your unique way is your greatest selling point.
Related: The Secret to Pitching Your Business Plan in Just 10 Minutes
2. You must be able to withstand the unexpected
As revealed in a Harvard Business Review article, professor Tom Eisenmann came to a startling conclusion. Having interviewed hundreds of founders, investors and reading scores of published accounts of setbacks, the prime reasons for failure became apparent. It's what Eisenmann calls "false starts."
False starts happen when businesses simply run into problems they could not foresee. A clothing manufacturer, as an example, had done its proper testing, had talented leadership and a successful launch but did not understand that sudden high demand would cause the quality to suffer. So began the downfall of an otherwise successful idea.
Without the ability to raise more funds to meet demands quickly, at a high quality, it simply could not sustain the cost. A new endeavor that runs on a shoestring budget with no financial help through the unexpected can find itself in a danger that is hard to escape.
3. You must meet a true need in the marketplace
Your passion may or may not make for a profitable business. Yes, you could possibly make money renting chickens, removing lice or making fake wishbones for vegans (all actual businesses), but will your idea produce enough income to live on and grow at a rate higher than inflation?
This is one of the greatest mistakes of new BIZ Experiencess. They love what they do and simply assume the buyers are there. A product or service must be tested to see if the market demands it.
This can be partly determined by surveys, trade shows, flea markets, free samples and other more complicated market testing procedures. Startups can employ extensive research, a study of competitors and testing through social media and email campaigns.
Related: 4 Keys to Grow and Scale Your Startup
4. You must have a compelling reason for your customers to buy
Having a quality product or service is essential, but that may not be enough if your competition does the same at the same or a lower price. Ask yourself why you would buy from you if you were your own customer. Price is just one of many factors. You must stand out in such a way that the market takes notice.
Some high-end hotels charge three times the price of their competitors, but their service is impeccable. In many businesses, there is a high end, a low and a middle. It's the middle that usually gets squeezed the hardest. You could still make it there, but it's going to be difficult if you are just another provider.
Maybe you are the plumber that is always on time or the bakery that delivers orders the following day. You're the software designer that has radical ideas no one has ever seen. Perhaps you have qualifications and expertise no one can match.
Whatever sets you apart, make it as unforgettable as possible and communicate that loudly to your base.
5. Your idea must be evergreen and timeless
Most people still have CDs but usually have nowhere to play them. Society moves on whether we like it or not.
Be glad you didn't start a camera business before the first version of the iPhone hit the market. Businesses that were a viable money-making venture not long ago are today's telegraph and buggy whip.
If you can't keep up with the innovations then look at human nature and fit your cause to serve people in a timeless manner.
People will always eat, sleep, drink and need encouragement. They will always love their pets, their kids and their spouses. They'll need to get around. They'll trade their birthright for chocolate and a chance to escape from the pressures of life. But video cassettes and carbon paper are not looking too good for the future.
So what should you do? With all that can go wrong, the question remains: Should you do your research and take your best shot to move forward with your idea that will change the world?
From one BIZ Experiences to the other, that is a rhetorical question.
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