So you’ve just graduated from a reputable university and already wasted the whole summer celebrating. Now, you have this great idea for a product and sitting in an office is not an option for you.
With start-ups being all the rage right now, why not start your own company? After all, Zuckerberg made it with Facebook. We’ll, here’s a preview of what needs to be done and how not to fail.
Idea and Product
Ideas often come to people in strangest places and strangest times. You might be commuting when you suddenly thought of the next Facebook or taking a bath when an idea of a resort came to you. Some people spend years incubating their ideas only to see it on other people. Others start too early and will give up in the first hurdle.
Not all ideas are golden and when you feel strongly that yours will succeed, be vigilant. Ask yourself, “Why do I think this will work?” The answer may be as simple as “because people are asking for it.” In this case, visualize how people will use your product and services in the future.
At the same time, observe the present and see if it is in demand. For example, when Reed Hastings got a $40 late charge for a rented DVD, instead of getting frustrated, he grabbed the opportunity to think of business ideas. He looked for the need of the people and built his ideas around it. Years later Netflix.com, an online DVD rental service, is flourishing with revenues at $1.3 billion.
People? Does this mean you get to hire people without needing money? Well, not so fast. You should get a partner. A partner is a person who knows your idea to heart but does not see it in the same light as you. Simply put, he is someone who has totally different views.
Steve Hogan, the CEO of Tech-Rx, says that one of the top reasons why startups fail is that they are the sole founders and they never bothered to find a partner. His firm, which aims to help struggling startups, often see this as one of the most common reasons why startups never take off.
“That is the single biggest indicator of why they got in trouble,” Hogan says in a conversation with Pando Daily.
Partners who can easily disagree with your ideas are essential as they can often see things beyond your product. Being too focused on your startup will make you miss important details later on.
Too often than not, people with great ideas decide to leave the entrepreneurial path early in their careers for the fear of failure. Guess what? Nine out of ten startups fail. And the owners are actually aware that it is a possibility.
It is actually more painful to see someone else succeed later on with your idea. Regret will not let you sleep at night and frustration is even harsher.
When should you start?
Now is the perfect time. It does not mean that you leave your day job, cash-in your 401k, and jump off a cliff without a parachute. Learn the industry you are trying to penetrate. Let people know about your ideas and see their reaction.
Conduct a market analysis to further cement the viability of your product. Find investors once you are certain your idea is valuable and present an amazing pitch. Learn about finances and common problems that small businesses face. There are endless things to read and understand.
There are little things that may seem insignificant to you now, but these will be valuable to you in the near future. Understanding the possibilities and the risks is essential and preparation is a requirement. But, learning them will get you nowhere if you have no desire to act.
About The Guest Author: Kimberly Grimms is a futurist who spends most of her time monitoring social behavior in search for new consumer trends. She’s currently a contributor for Social Media Today, Tweak Your Biz, and Dashburst.
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