Startup tips

Here are some important startup tips that we would like to share.

In the business industry patience is a virtue, impatience a vice.

Entrepreneurs must take action whenever a great idea merges with an appropriately substantial sum of money (so the story goes) or be in danger of losing out.

There’s an old saying in startups: “Being early is the same as being wrong.”

In order to be a successful entrepreneur, you must take into consideration that long term financial planning and timing are as important as the ideas and the funding. While it is tempting to rush at an opportunity, it is also essential to wait for the right moment.

Take for example the online group buying service, LetsBuyIt.com, which was Groupon without everything that made Groupon successful.  It never worked out, because it focused on consumer packaged goods from big companies instead of local services by small businesses, and also because there weren’t social networks then to propagate the offers. For group buying to work online, it turned out, you needed a number of things: a critical mass of people online, a critical mass of small businesses online and a critical mass of people willing to pay for stuff. None of those things were around. So nobody’s heard of LetsBuyIt and Groupon is the fastest-growing company in history.

GO Corporation was a forerunner of Palm and even the iPhone and iPad.GO Corporation was one of the most well-funded startups of its time, with a mobile operating system and mobile, pen-based computers that were surprisingly good. It was a forerunner to the runaway success of the Palm Pilot, and in many ways of later touch-based computing devices like the iPhone or the iPad. It was just too early.

 

1 The Timing

 Successful timing depends partly on extremely careful financial planning – empowering a business to wait it out until it is prepared. For a specific forecast and a hint of the ideal times for growth and expansion, the business owner must keep an accurate record of business performance. Researches have revealed that financial issues are usually the fundamental cause for startups failure. The most common reasons that businesses collapse are either costs being higher than income, failure to generate enough revenue or simply running out of cash, which would be indicative of poor financial planning.

Forecasting can provide the full picture of the business so that it’s easy to get the timing right. 

Financial planning is specifically vital for fast-growing startups as more growth means more investment. Expansion in terms of staff and premises can lead to all available resources being used up. Sound planning can keep a business owner up to date of this spending.

 

2 The Overall View

An important factor that might have an influence on the prospect of success is the timing in relation to wider socio-economic trends like sharing economy, any new technology and products, any regulations coming into force that may slow down the business, any legislation that may have a beneficial or harmful effect on the business. Having a deep familiarity of industry trends, particularly those believed to occur in the near future, can ensure business owners are prepared when the time comes.

 

3 The Competition

Perfect timing also involves a complete understanding of the market and competing ideas. The success of each idea is determined by the progress of others. A business owner would have access to the critical insight they need to grow, expand and stay ahead of similar businesses in the market provided that they have a thorough knowledge of their competition. Obtaining statistics detailing the success rates of competitors can give also give an indication of the market’s appetite for a particular offering. By acquiring detailed competitors’ statistics of their success rates can also give and insight of the market’s appetite for a particular offering.

In the end, only the business owner can decide when the right time to expand is and which personal or business goals to follow. But a deep understanding of competitors, the industry and of the finances of the business itself can provide a boost when the time comes. A perfect concept with a bad strategy is still likely to fail, but a concept reinforced with good financial planning and ideal timing will have every chance of success.

There’s a great time when social change, customer demand and technology combine together – the solution is to look after your business in the meanwhile and be ready when the time comes.