Big ideas for a great business but it all comes down to planning
Most people, at one time or another have come up with an idea which sounds like it could be the basis for a great business and you can’t believe nobody has thought of it before. For most of us, we never get past the idea stage. Then there are those who take their idea, invest in their idea and make that idea a reality. What happens from there is either great success or sadly, another start up business which just didn’t make it off the ground.
Ilya Pozin, writing in Forbes Magazine recently, listed the eight reasons he believed start up businesses with good ideas fails. His reasons are:
- People give up – behind successful stories, founders never gave up. Be resilient and push through the negativity.
- Ideas alone are worthless – it’s the people and their commitment behind the ideas that matter
- Overbuild – focus should be in creating the minimum viable product (MVP). Develop a product which is easy to understand. The more feature-rich the product the more time and money it takes to build. Too many startups focus on differentiators and features instead of keeping it simple and focusing on speed and ease of use.
- No plan for marketing and user acquisition – too much focus, time and money is on product. Startup founders need to develop marketing strategies to ensure their product is seen and used by people.
- No mentors – don’t ignore the advice of mentors. Be open-minded about feedback. Listen to those who have been there before you. Use your best judgment to gauge whether or not criticism may require you to change direction.
- Cast a wide net – the best startups locate their niche as well as a small target audience. This makes marketing much easier and cheaper.
- Wrong team – the founder brings in the wrong partners. Find partners on the same page as you but who differ in key areas – idea-oriented v execution oriented or right-brained v left brained. You should agree on goals and be passionate about your ideas.
- Solving the wrong problem – many entrepreneurs fail to see that the problem their idea aims to solve has a very small target audience and doesn’t fall into the majority of users category.
So, these eight points said, you’ve sorted out the way to get your product or service off the ground but there are still a few more steps to ensure you are heading in the right direction.
Along with allocating funds for marketing, allocate funds to engage the professionals who will guide you including an accountant and a lawyer. Many start up businesses fail to allocate funds to ensure they have registered their business correctly, have had contracts drawn up covering suppliers and staff or have had contracts they are signing reviewed and have taken advice on the legal implications of signing. You may need to register patents, have terms and conditions drawn up or have your intellectual property protected.
All of this will be required before your idea or product is out there for the market to enjoy. Take the time to consult a professional who is not emotionally attached to your new business venture and who just wants to ensure you have considered all of the legal and contractual issues that are looming.
Dooley and Associates can assist you with all the legal requirements for your new business and assist in getting that great product or service off the ground. Our professional team will be happy to meet and advise you on ensuring the legal bumps are taken out of your path to financial success and independence.Back