Each one of us aspires to do something different. There are times when we just have an idea and we really want to work on it but we don’t know how that sector or industry is doing. Among all the fears we have, fear of failure is the biggest one. But yes, if we don’t fall how will we stand again, run and complete the race?
“For all the most important things, the timing always sucks. Waiting for a good time to quit your job? The stars will never align and the traffic lights of life will never all be green at the same time. The universe doesn’t conspire against you, but it doesn’t go out of its way to line up the pins either. Conditions are never perfect. “Someday” is a disease that will take your dreams to the grave with you. Pro and cons lists are just as bad. If it’s important to you and you want to do it “eventually” just do it and correct course along the way.” – Timothy Ferriss, author of The 4-Hour Work Week
So look up, because that “someday” is today. And to make things easy for you, we present “Tips to build your Company in an unfamiliar industry.”
- Know about the economy
All your strategies shall fail if you haven’t done this. It’s not always about having the best idea and marketing strategies. If the economy is not doing well, nothing shall fall in place. The economy should be in boom or there should be growth in the economy. This shall increase your chances of getting investments and people will readily purchase your products or avail your services. Analysing these factors are essential because if the economy as a whole is not doing well then chances of consumers purchasing your product or service shall decrease because of the low level of money in the economy.
- Know about your competitors
In order to get an overall idea of the industry in which you want to build your company, it is extremely important to study the major players of that industry. The important aspects are their capital structure, profit and loss account, revenue model, sales and distribution strategies, and their way of marketing and advertisement. After studying these, you can decide upon these factors for your company based on the resources you have. You can even analyse your point of parity and point of difference through these.
- Plan and Prepare
You should have a detailed business plan and feasibility report. Every investor asks for a business plan. If your business plan is not convincing you shall not be able to attract investments in your company. Nowadays Angel investors support start-ups but they require a detailed description of everything. Generally, a business plan includes an executive summary, management description, market analysis, operation management, sales strategies, funding requirements, and financial projections. In addition to this, you should be able to justify the returns one can get by investing in your company.
A business plan makes your target much more accurate. You know what you exactly want and the plans and the strategies to achieve them. Read more about How to Plan for the Next Five Years?
- Be a risk taker
The biggest risk is not taking any risk. In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking the risk. –Mark Zuckerberg
Generally, risk taking is seen as a negative strategy and is considered dangerous. But if you don’t, you shall miss big opportunities. Moreover, if you work in the same domain as that of your competitors, you shall never be able to stand out and be different. A good example is that of Reliance Jio. Even if your strategy fails, you shall learn from these failures which shall later be your stepping stones for success.
The first benefit of having a good network is the opportunity these networks create for you. Opportunities derived through networking are those of investments, client acquisition, partnership, and much more. While doing business you need sources to get your work done easily. Networking even helps you to get advice and expertise from people of like mind. If you have a good network, it will be easier for you to get recognised in this diversified and over-competitive market. Nowadays online networking is at its boom. You can easily get in touch with any one in any part of the world.
- Back up plans
A mishap can be broadly divided into three categories: prepared and protected, protected but unprepared, and unprepared and unprotected. While all business wants to come in the first category but there might be situations like the other two. You never know what market has in store. Your plan A might not work properly, or at a later stage, you somehow find a loophole in it. In such a case you should have a backup plan ready.
- Hire the right people
“The secret to successful hiring is this: look for the people who want to change the world. “ – Marc Benioff, CEO of Salesforce
It is not always about just filling the position but to appoint someone who meets all the requirements for that job role. Employees are a valuable tangible asset to any business. Finding an employee who is dedicated and shall sustain in your company for a longer period of time is the task. If your employee is keen and self-motivated, everything else shall work. Added to this several other skills and attributes should also be considered. These include communication, passion, team player, leadership, loyalty, and much more. Since your company is a start-up having an employee base which is loyal, hardworking and patient is of extreme importance. Your employees are your backbone. You should plan your selection and recruitment procedure, your pre-requirements from your employee, and then chose the most suitable candidate. It is not only about choosing the best one but also about sustaining them for long periods so that they don’t leave your company.
- Appoint a lawyer
It is disheartening to see the number of startups that fail in their first year of business. A lawyer is a right person to guide you through all the legal formalities you should proceed with for your business. Usually, there are so many terms and contracts, that a layman may not be able to understand. In these circumstances, it is essential that you have a lawyer who shall explain you each and every clause of the contract. Added to this when you have a lawyer it builds a professional image in the mind of your investors. It is not important to hire a lawyer from a large firm that would eventually increase your cost. But a decent lawyer who understands your requirements is good enough.
- Take guidance
It is always advisable to take the first-hand experience which is not available in books. You might have read a lot of books about entrepreneurship and how to start a new business. But books do not always reveal the truth. A mentor might be harsh but shall tell you straight if your idea will work or not. Added to this, if you have a mentor, networking opportunities increase. Business is all about ups and downs. All you need is a person trusting you and encouraging you that you shall succeed. They shall help you sail through your failures.
- Be different
In such a diversified market, if you want to be known and if you want to create a lasting impression, you need to be different. And to be different, you need to be innovative, risk taker, should adapt to the changes and learn from others. But for this, you need to research about the industry in general and other companies in specific. If you lack in your research, your strategy of being different shall fail. You should properly analyse the major market players, their cost structure, revenue model, Marketing strategies, and much more.
- SWOT & PESTEL
SWOT stands for strength, weakness, threats, and opportunities. It helps a firm to analyse its internal factors, that is, strength and weakness and external factors, that is, opportunities and threats. This analysis is done so that a firm can focus on its strength and opportunities and dilute its weakness and threats. Whereas PESTEL stands for political, economic, social, technological, environmental, and legal factors. It helps to analyse the overall condition of the economy. The results of PESTEL analysis helps a company in deciding its SWOT.
- Think small but execute it big
Each one of us aspires to do great things in life. We have a habit of setting our goals high. But when you start like this, you need to think small but execute it big. From thinking small I mean think for short term first. You need to think about the present and the resources you have before you plan for long term. Have a big goal, but break it down to small ones. Start aiming your next small goals. It will add to your confidence and shall pave way for your long term goal. When you start you have to build your company, your market, and your strategies. Taking it small shall make things simpler. Well, we all know slow and steady wins the race.
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