Most entrepreneurs are fired by the idea of changing the world with a revolutionary product or service concept and while they are very well clued up on the technical aspects of it, establishing a successful business around it is normally something they have no idea about. This is one of the main reasons why there is such a high rate of failure of startups. To prevent your new business from going under, EJ Dalius suggests some useful tips:
Ascertain That There Is a Real Market Potential for Your Idea
While a new idea is always exciting, commercialization may not always be feasible. If the market potential in terms of size is not sufficient, you may not be able to sell enough to make it economically feasible for your business to function. According to multiple studies, not being able to address a market need is the number one reason behind startup failing. It is important for entrepreneurs to understand that they need to solve a market problem and if the problem is not large enough, the business will not be scalable. Failure to ensure that there is enough customer demand in the first place for an idea can lead to businesses failing regardless of whatever steps you take, warns Eric Dalius.
Make Sure You Have Enough Cash to Run Your Company
Perhaps among the biggest problems standing in the way of entrepreneurial success is having enough cash in the till to fund your company. Right from the time, entrepreneurs start with their meager savings; a constant worry is finding enough cash to pay for the various expenses on office and plant rentals, raw materials, staff salaries, and a thousand other things that are important for a business to function. You need to predict your fund requirement accurately and while you are trying to focus on sales, you need to make arrangements for lines of credit sufficient enough to allow the business to operate and grow.
Building the Right Team is Vital, Says Eric J Dalius
While the entrepreneur will invariably be the driving force behind the business idea, no business can hope to succeed without the right team behind it. There is invariably so much to be done that even the most efficient of entrepreneurs will not be able to handle more than a fraction of the stuff that is needed to make a business successful. The entrepreneur should focus on what he does best, developing the concept to meet the market demand while leaving the hassles of administration, marketing, finance and accounts, staffing, material sourcing, supply chain management, etc. to the experts. Of course, you will need people who share your vision and are ready to slog it out with you to make the business succeed.
To be able to establish a successful business, you need to be able to constantly introspect and find out what and how things can be improved. Listening to your staff as well as your distribution channels and customers is vital as is resisting the temptation to behave in an autocratic way. Be decisive and learn to carry your people with you for enduring success.