A startup is a small business which is its initial stage of operations. Startup companies are founded by a group of people or in some cases by a single person where they aim to provide a product or a service because they believe that there is high demand. In recent times, Startup is no longer an off-the-wall topic since there are many startups in our country.
The startup needs to take into consideration a lot of things to reach its product or service to the clients. From planning, designing, funding to research there are many other meticulous things to be looked after in order to grow. There are certain principles that startup companies should follow from their starting phase to the final phase. These principles have a huge impact on startup companies. The considerations are :
Market validation is the most important key factor to know the demand for them in the market. Good knowledge of market demand makes it’s easy to develop a product or service which is customer-centric. Market validation can be done via survey, email response, or through Data Analysis.
The initial investment is the most important factor. Generally, almost all the business starts with a small amount of investment, and the investment grows after the business starts to grow. In recent times, there are various companies willing to invest in small companies or successful people if impressed by the idea also invest in small startups.
Startup companies need to form a partnership with other companies to grow business. Business partnership aids to showcase the product or service to other customers. A business partnership with other companies helps to become successful.
Good decisions in uncertainty may save a lot of money. It is not always that companies make a profit every year and customers are satisfied with their products or perhaps a new company has just lured all the customers of the market. In this case, a good decision on how to tackle this decision may save the company future. A bad decision about a product or service may collapse the reputation of a business.
According to a survey, about 90% of the companies fail in their initial stage. These failures may be because of many factors like – Lack of Customer satisfaction about the product or service, Funding problems, lack of proper planning, rival companies, and lack of motivation from staff or workers.
While many obstacles may come during the initial stage of the business, the above factors chiefly decide the future of the startup companies.