TechCrunch recently published an article signaling what they think is essentially the beginning of the end of the “startup era”. With everyone wanting to be the next Mark Zuckerberg or Elon Musk, the world has seen an exponential increase in the number of startup accelerators, with graduates dreaming to come up with the “next big thing”.
While there may be some truth to TechCrunch’s statement, startups still have a long way to go. Whether you are a business owner or a manager, the possession of a certain skill-set more or less determines the success of your company. Some of those skills are:
1. Recognizing an opportunity when one presents itself
An excerpt from an article I read here: “If you’re like most people, throughout your life a few great opportunities will land on your doorstep. And again, if you’re like most people, you’ll ignore these rare opportunities because you won’t recognize them as great chances for success.”
I think this resonates with a lot of people. We, humans, are notorious for letting incredible opportunities just pass us by for the sake of being “safe” or “comfortable”. Finding that golden nugget of an idea takes a lot of talent and hard work, but once you identify a market gap, think of a way it could be solved. Capitalize on it. There’s a high chance you won’t come across it again.
2. Conducting market research
Marketing research can give a business a picture of what kinds of new products and services may bring a profit. For startups, understanding your target customers is key to creating effective marketing programs. Therefore, it is critical to know how to conduct market research that is relevant for startups.If you have not researched what your target customers want, you will be unable to craft an effective marketing message, which means potential customers will look elsewhere for solutions to their problems.
3. Resource allocation
Resource reallocation simple means shifting money, talent, and management attention to where they will deliver the most value to your company. According to Mckinsey research, most senior executives understand the importance of strategically shifting resources. 83 percent identify it as the top management lever for spurring growth. Yet only a third of companies surveyed reallocate a measly 1 percent of their capital from year to year. You can read more about effective resource allocation here.
4. Understand the laws of supply and demand
The most important yet undervalued concept of basic economics. The principles of supply and demand are elementary but many businesses get this wrong from the start. People may like your product, but aren’t willing to pay your price for it, or maybe people just don’t want your product at any price. They may not see the value in it, find it too difficult to understand or just think it’s a dumb idea.
Once you determine there is a demand, find out how weak or strong the demand is. Knowing the level of demand will help you determine your prices. With high demand, you can set a higher price. If there is low demand, you may need to lower your price. Of course, these are just the basics. Other issues affecting supply and demand include who your competition is so be sure to factor them in.
5. Dealing with failure
According to Forbes, 9 out of 10 startups fail. There’s a high chance the startup you worked so hard for is destined for failure. This isn’t mean to discourage any aspiring entrepreneurs, rather they’re meant to encourage people to work smarter and be more aware of the volatility of today’s market. Every entrepreneur inevitably faces setbacks and failures. Some will be small, and some will be so big that they will seem overwhelming.
If you do fail, be it at making your startup take off or not being able to have a project carried out effectively, you must be mentally strong and positive at all times. Plan for the possibility of closing the business and learning from the setback.
6. Teamwork
Teamwork in the workplace offers the company a chance to learn how to work together. The importance of teamwork at work is vital to the success of the company. When working in a team, you are working towards a common goal or set of objectives.
The whole process of your work becomes more efficient. One of the greatest benefits of working in a team is the inspiration and ideas that can result from team discussions In an effective team environment, staff members feel confident in suggesting their ideas. As a good leader, you should encourage teamwork in the workplace and provide your employees with incentives that are essential for success. people who work under you to work together towards the common objective
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