The biggest challenge for any start-up is converting its idea into a business model and executing it in a right direction to prevent failures and unbearable losses. Although, learning through failures is considered as one of the best option for developing business, too much is too bad, always. Besides, it is crucial to survive in highly competitive market, where same business models are enhanced by the experienced professionals.
“The strategy is to first know what you don’t know, the tactic is to grind, and the value is to remember: there are plenty of places to innovate.” –David Friedberg
According to the analysis made by the FS, it is important to analyse the market, before you step forward to start your company and minimize the probability of failures.
Above picture represents the requisite elements to be considered before you step forward establishing a logistic business. The first and foremost essential factor is identifying a problem. It shall be analysed in terms of how many people are suffering, their age, gender, occupation and affordability. Besides, it is vital to comprehend the difference between the issue and the convenience. Analyzing the problem in customer’s perspective gives immense market potential for your business concept.
The very next step after analyzing the problem is finding out for suitable solution. Solution ought to be analysed by comparing all existing solutions and its pros and cons. Analysis of existing and new solution will open up a new market competition for your business during execution.
Market volume analysis is the next step to analyse the market volume for your business concept. The combination of problem analysis, targeted market and the penetration rate explore the market volume of your business concept. Although the estimated volume is high, it is crucial to consider the essential elements such as affordability limits, consumer loyalty and the actual volume of your business target.
Market competition analysis is considered to analyse the market competition for your business concept. It is essential to evaluate direct and indirect competition at initial stage.
Revenue model analysis: The main objective of starting any business is to get more in-cash flow than outflow to ensure maximum profit. Hence, it is essential to analyse the revenue model prior executing any business models.
Marketing strategies: A successful business withholds a compelling marketing strategy that is strong enough to convince customers and attract them towards the new start-up concept. It is a tendency that people compare products before they choose. Hence, the marketing campaign start-up choose ought to be innovative, and strong enough to convert potential customers to loyal customers.
Legal Requirements: It is one of the most important elements that a start-up has to pay attention. The nation’s or state law changes according to the business model. Hence, it is vital to keep informed about the business laws and define the legal terms and contracts to surpass legal challenges.
Scalability Analysis: The business model should be updated frequently to establish a strong foothold in the consumer market. It has to become one stop solution for consumers to address their needs.
Long term target analysis: Entrepreneurs always target to become a biggest player of market, if not; at least they aim to acquire small start-ups or expert domains. Nevertheless, irrespective of the type of target, it is essential to set up business goals and the target should be clear at the first day of establishment, so that the strategies can be developed in the same direction.
Team selection: Developing a perfect team requires a thorough knowledge of work process and distribution of work among the available resources. Team selection plays a critical role in start-up success. Hence, it is essential to choose the experts having clear focus and dedication.
Prototype testing: It is a simple working model that tests whether your product is capable of conveying the business concept, potential, features and functionality. Although it is not completely functional, it gives a fair idea of your start-up vision.
Monitoring and control for final product: Once you completed aforesaid steps, it is the best time to execute your business and based on the analysis result, you can weigh the market options.
Although it is a tough job to create a fool-proof system for start-ups, aforesaid analysis help reducing the possibility of failures, risks and challenges.