Every startup business struggles to survive, especially because the competition is very high and they have limited time to prove their worth. In order to convert an idea into a business, startup owners need to complete multiple tasks and raise enough funds so they can turn their endeavor into reality.
That is no easy task because any idea you might have is probably already out there on the market by now. However, just because the same or similar idea has already been turned into a business, it doesn’t mean that it will have more success than you. It’s all a matter of strategy and performance and you should never get discouraged by the competition.
Moreover, if you want your startup to succeed, then you will have to work hard and convince both the audience and the investors that your startup is the next big thing, as well as that you offer something that your competition hasn’t thought of yet. The best way to achieve that is to raise the importance of your startup and here are a few tips on how you can do that.
Start engaging in active networking
Every entrepreneur has to start somewhere and the best way to do so is to create your own personal network of known associates, friends and family members.Networking allows you to explore the market by directly contacting key figures that are related to the industry. Furthermore, you’ll be able to gather information on how other successful people do things and how other startups managed to climb their way to the top. Additionally, you’ll be in touch with people who can give you tips and advice on how to formulate your strategy, while also being in touch with potential prospects and investors.
Another reason why you should actively network is to find a mentor. Now, most entrepreneurs claim that they don’t need anyone’s help and that they can do everything by themselves, which is okay. However, if you don’t want to risk too much with the fate of your startup, then you should definitely find a mentor who will teach you about the industry and how to make the right business moves. Make sure your mentor is someone who is renowned and who has already reached success.
That way you’ll be sure that you’re getting the best advice. Someone with a lot of experience in the industry can greatly help you out by showing you the ropes or pointing you in the right direction. Don’t think of a mentor as someone who will want to change or reshape your idea, but more as someone who will guide you through all the troubles you’re about to face and help your startup stand out among the others.
Integrate with the social media
The world of social media and networking can become your best friend. For startup owners, social media isn’t just a great source of information, but also a great place to test out your ideas and gain feedback that will be invaluable later on. Furthermore, social media is the gathering place of various people and you can leverage that to find out who your target audience is and what they may think about your future endeavor.
That way you’ll be able to gain some followers right from the start and use all the information you gather to steer your business in the right direction. After all, you have to be accepted by your potential customers in order to succeed and that’s why you should focus on building your business around them. For example, Facebook is a great place to start because it’s one of the largest and the most successful social networks out there, with almost two billion active users. Facebook is very business-friendly and it offers you many options to promote your business, connect with your target audience and spread your message the right way.
Of course, even a startup without a finished product and revenue can use Facebook to promote itself. There are people there that will happily give you their opinions and beta-test your ideas. Moreover, you can give unfinished versions of your product to people in exchange for feedback and reviews that you can use to improve your products and even add some unique features. Once your product is finished, people will also be able to easily order it from Facebook as well. Social networks are the best way to find early followers that will support your start-up in the future. Now you can use Instagram for business and create stories with links which will drive traffic to your website/product page.
Another reason social media is valuable to startup owners is that you’ll be able to attract enough people and generate enough buzz around your business. This will help you create your proof-of-concept that will prove invaluable in your business decisions and strategies. Also, the more interest the audience has in your startup, the more accurately you’ll be able to measure your success rate based on their feedback alone.
Furthermore, you’ll have a rough idea about the supply and demand for your products or services and therefore you’ll be able to estimate your revenue growth. Moreover, you can join Facebook communities and gather as many followers as you can. You’d be surprised just how many people would like to be part of something that is new and has yet to reach the market.
Know your startup’s worth
Evaluating your startup will probably be one of the hardest challenges you’ll have to face. That is because your business is still a startup and its fate is still unknown. Furthermore, you probably haven’t started generating revenue, thus you have no real data to work with.Startup valuation is important when determining the course of action you will have to take in the near future. Also, it’s important when you reach the moment of raising capital for your startup.
Developed businesses with steady revenue have no trouble when evaluating but for startups, it’s a lot harder to reach a specific number. However, no one said that you need an accurate number, but the closest you get to your startup’s real worth, the better. The best way to gather solid information is by conducting thorough research. For instance, you can appraise your startup against competitor businesses on the market, which will give you an estimate of your true value. Moreover, researching the demand for your products and services will give you an insight into how much profit you’ll be able to generate over a period of time.
As mentioned before, social media is a good way to test your theories and determine how long your startup needs to stay in business before it becomes profitable enough. You can also try to consult with a financial advisor that will help you determine the value more precisely and get you closer to the number you’re looking for. Still, you will only have an estimation of your startup’s true value but you will also have an idea in which direction things will go in the future.
Convince investors just how important your business is
At one point, you’ll have to face the investors and seek additional funding for your startup. Usually, that is the last step before the launch of your product or service. It’s important to remember that angel investors and venture capitalist see hundreds or maybe even thousands of startups throughout the year. They are looking for a startup that will meet their expectations and you have to convince them that you’re the one they’ve been looking for.
However, that might be harder than it seems because you need to provide investors with solid proof that investing in you will definitely pay off. Investors are looking for a business that will get them the desired return on investment and they need to know that they’re not wasting their money. That’s why they will be strict when evaluating whether your startup is worth investing in or not. Nevertheless, it’s not that hard to convince investors when you have the data to back you up. Everything listed above in this article isn’t just meant to help you raise the importance of your startup, but also to give you proof that will convince the investors to give you the much-needed capital.
You should show them the network of potential prospects that are interested in your ideas and the network of your future associates. Also, having a mentor means that you’re serious about your startup’s future. Give your investors your proof-of-concept and show them how many people are interested in your products. Moreover, show them the value of your startup based on market estimation and your personal estimation, alongside your predictions for supply and demand, as well as the revenue you’ll be able to generate. This will give your investors a piece of mind and make them carefully examine your request. With the data to back you up, you have far greater chances of winning over investors than with assumptions and untested ideas alone. After you get your investment, you can finally complete the development of your startup and prepare for a successful launch.
Raising the importance of your startup is essential for convincing your target audience that your business will be unique and valuable to them. Also, it’s essential to convince your investors to give you the much-needed capital so you can finally wrap up the preparation process. Getting your startup business all the way to the launch is a difficult process, but all effort you place in it will be well worth it in the end.
About Alex Williams
My name is Alex Williams. I am a journalism graduate and a rookie blogger trying to find my luck. Blogs are the perfect opportunity for presenting yourself to the wider audience, getting the chance to showcase my expertise and receiving recognition. I am a regular contributor at Bizz Mark Blog.