Your start-up idea needs to be different. Every start-up owner needs to understand the fact that the better idea means the better success. Other than this- the number of people in your team should not be enormous. Still, they should have high level of inner motivation on organization’s value creation. It should be right people with the same drive and much understanding. Here, right people mean that people in your team needs to be proficient. Well, experience also matters a lot but sometimes many skilled people don’t get a chance to work because lack of experience. A vision for the future is to be more essential for them rather than getting high salary and bonuses.
The basic issues that really require your attention are mentioned briefly below by Kassem Mohamad Ajami:
- Your business registration.
- Legal assistance and accounting support.
- Construction of efficient financial model of your business.
- Construction of a formal model of your business functioning.
In addition to this, an entrepreneur needs to be aware that at the early stage of the start-up, one of the most essential recommendations is to pay special attention to pleasure and drive of the project not money or revenue.
Don’t forget about risks: Risks are always around. No matter, how hard you try to avoid them, still you will face them. Your team members should not get frightened by risks or hamper their development. In general, a start-up can encounter numerous risks.
- Market Risk: every entrepreneur needs to determine that if there is a market for your product? Is it important to somebody? Will people buy it? Identifying the answers these questions is one of the main tasks before launching your product to the market. If this risk has nothing to do with your business, your business will surely succeed.
- Product Risk: Another top priority that really needs to be taken into account while establishing a start-up is to identify your product, its features, loopholes that are resolved with its help, and its USP (unique selling point) to be invested in. If you are unable not to do it, obviously prospective customers will not be interested in buying it.
- Team Experience Risk: One person cannot overcome all risks by himself or herself. There has to be a team that is prepared to encounter and overcome risks. You should construct a team of such professionals who have plenty of experience and knowledge of the business area. Even if the professionals are not experienced enough, they really need to have a vision. Besides, the team, it is quintessential to develop ideas that are linked with product’s building, its bringing to the market, etc.
- Financial vulnerability: Money is above everything, especially when it comes to foundation of a start-up. Most start-ups are really in a dire need of investments to start and functioning. It gets obligatory to determine business’s limitations when you are looking for new investments. Your prospective investors pay heed to your proficiency to communicate a business plan, to reach every new stage of development effectively.
- Risk of Copiers: There is always a peril that opponents will make a replica of your product. It is peculiarly interesting for IT industry. It is convenient to present your idea while looking for suitable investors or executors. It is also possible if the development is not active.