Startups and Continuity – The Promise & Pitfalls .:. Pivotal Zen

STARTUPS & CONTINUITY

The Promise & Pitfalls

Having your own business provides the greatest means to achieve personal fulfillment and generate wealth. Why do some grow more than others?

Did you know that nine out of ten startups fail resulting from insufficient research, objective product viability, and by not ensuring they have the capital to sustain the business? It may sound obvious,but most entrepreneurs allow their passions to get in the way of sound business decisions. How do startups leverage their passions for sustained profitability?

Step 1: Have An Objective Plan

There is no status quo in business today. Between the influence of technology and generational shifts putting some companies out of business, a flower shop and automaker are no different when it comes to meeting customer needs. The most successful companies will tell you, it all begins with sound planning.

As a startup, planning includes not only an objective look at how to best sell your product or service but your profitability (and by when). This means having financial estimates for at least two years, viability of any patent, as well as an estimate of how much capital is needed during the term. When courting investors, it’s best to plan conservatively. They will respect you for it. Inflated estimates are a number one pitfall for entrepreneurs. If you’re a mature businesses, the same principles apply. Equally important is to not be afraid of change and pivoting when market conditions evolve. And remember, the 20% of time you devote to planning will yield 80% of the results. Great Planning = Great Results!

Step 2: Research & Development

People have “great ideas” all the time with the best intentions, but very few determine how viable a product or service is. Warren Buffet is known to quote “Say no to everything. ”Why? Because fundamental research for success is typically not employed. For example, doing a patent and trademark search, examining the size and feasibility of a market, and objectively assessing where a product is positioned. Is the product a disrupter or a “me-too” item increasing the cost of market entry? And how well to you truly understand your customers? How do they behave? What are their pain points and why should they use your product or service over another? If a consumer product is not solving a problem or warrants shelf space at retail, it will never sell well.

If you’re at the concept stage, help yourself by creating an “MVP” (or Minimum Viable Product) that allows for testing and learning firsthand what usage and production issues you might encounter. And be sure to research your market domestically and internationally, go to trade shows, conduct surveys or informal studies. Having these tools for success shows you’ve done your homework and are ready to meet the world.

Step 3: Capitalization

From an investor perspective, an organization in its early development is characterized by high risk and uncertainty. A startup typically has a limited amount of history, little or no revenue, and often relies on outside funding to survive. Whether running the business from a garage or in rented facilities, quelling that stigma is having a forward-looking perspective and sufficient funds to ensure continuity and taking your business to the next level. If finance isn’t your game, hire an accountant who can objectively review your plans.

Step 4: Assemble a Great Team

Before production and sales, are the people making business success possible. They are your greatest asset. Treat them well and implement these (5) important growth practices:

Clearly Define Your Vision & Goals: Give your team members a clear understanding of what they are signing up for and what is to be expected of them. This matches the best people for specifc roles and allows them to operate at peak performance.

Carefully identify Necessary Roles & Skills: There is no one-size-fits-all in hiring. A strong personality trait for one role could prove disastrous for another. First take into consideration the culture of your organization and how each team member fits that culture. A resume is just a sheet of paper compared to daily interaction with team members.

Establish a Strong Ethos With Incentives: As you define expectations, include attractive incentives such as allowing down time to recharge and performance bonuses.This will help to attract individuals who resonate with your culture and are motivated to contribute to your success.

Emphasize Teamwork & Collaboration: Prioritize candidates who demonstrate a strong ability to collaborate and work well in a team. Individual talent is important, but successful startups thrive on collaborative efforts and everyone’s contribution.

Foster Professional Development & Growth: Create an environment that promotes continuous learning and fosters growth. Invest in employee training programs with avenues for personal development.

Step 5: Building & Positioning Your Brand

Positioning your brand is at the forefront of how customers perceive and interact with your brand in relation to competitors. Where are you are positioned in the market and what is your reason for being?

Define Your Unique Selling Proposition (USP): Identify what sets your brand apart from competitors. This could be a unique product feature, price, a specific benefit, or a distinct personality.

Know Your Target Audience: Listen to, respond, and understand your customer’s needs, preferences, and pain points.

Create a Brand Positioning Statement: Craft a concise mission statement. For Steve Jobs, it was “To make a contribution to the world by making tools for the mind that advance humankind.” Notice, there isn’t one word about computers or electronics. 4 Consistency is Key: Ensure that your brand’s messaging, identity, trademarks, social media, and experience consistently reflect your positioning. This builds brand trust and recognition.

Monitor and Adapt: Keep an eye on market trends. Conduct testing and don’t be afraid to pivot as market conditions change.