Students are often to dream about starting their own business and getting big money before their 30. Hqessays.com business writers wrote an article about questions one should ask themselves before launching a startup.
First, let’s imagine a situation. Peter is a student who wants to launch his own online-store on Instagram to sell talismans that are “charged” for a success the exams. It is planned, that there will be even amulets for really tough situations: some repeated tests or dealing with an exam commission.
In his dreams, Peter already sits in a leather chair in the NYC, where the main office of his global company is situated. But first, Pete should put 9 important questions to himself. This is how he can understand if his project can become successful.
Question 1: Who are My Potential Clients?
This is the most crucial question that decides whether the project will become successful or not. Many startups are bound to fail because their founders do not know how their clients look like, what their habits, needs, dreams, wishes and fears are. Make up a portrait of your audience, think over all the small details. Understand what problem of the user can be solved by your startup.
Our student Peter creates a portrait belonging to a typical representative of his target audience. That is, for instance, Kate: a girl that studies a lot. She often goes to bed at 3 AM because of the need to read workbooks or write huge notes. She is afraid of getting bad grades, so she feels nervous on lectures and exams. In order to lower her stress and believe in success, Kate needs an amulet that will protect her from bad grades.
Question 2: What is the Value of My Project?
Once you find out the worries of your potential clients, put yourself a question: “Does my startup solve their problems? What needs can it satisfy?” State in one sentence, why they should choose your products, and not the ones of your competitors.
Pete understood the “pain” of his audience: the fear to get bad grades or to drop out of the uni. So, he writer in Instagram description: “With our talismans you will never drop out and will always have excellent grades!”
Question 3: How Should I Communicate With Clients?
Think how you plan to contact users and involve them, and what channels are to be used for advertising. Determine, where your clients feel it easier to get the info about your product, to buy it and to give you their feedback. Maybe, that is Facebook, a messenger, an email box or radio and TV.
Our Pete decides to give ads in social networks where students spend most of their time. His first step is to start an advertisement through Instagram, where he is going to start selling his goods. After his business gets development, he plans to open points of sale nearby leading schools and universities of the country.
Question 4: How Should I Provide Communication with Clients?
Think how you plan to help your client if they feel problems when choosing a product. You’re your business have personal customer service or use automatic help in choosing? Maybe, it is worth to consider self-service possibility.
Pete decided to use individual approach towards every student. He helps to choose the color, form, writing or picture of a talisman. He plans to consult clients through Instagram or phone calls.
Question 5: What Will Be Sources of Income?
Describe the way how your project will bring your money. Mostly, young students becoming businessmen say they “just sell their products”, so they skip this question. Still, except of direct sales, there are many other ways to get incomes: paying for use, subscription, rent incomes, asset sale, etc. Do not focus only on one way to earn money.
For Pete, the main income is based on amulet selling. But with time, he plans to offer clients the possibility to rent a talisman for one exam or the whole session.
Question 6: What Main Resources Should I Use?
Decide if you will hire people and use their physical or intellectual resource. Maybe, you need to build a whole factory even. Divide resources into categories: physical, intellectual, human, finance. In addition, do not forget about branding, because mostly businessmen underestimate it. If you work on the image of your company or product, your incomes grow.
Pete decided to order talismans through AliExpress and then send them using a courier service. Once sales grow up, he plans to hire two students: one to be busy with client support, and one to send orders. Additionally, Pete will invest money into marketing and advertising.
Question 8: What Should I Do to Involve Clients?
Think over main steps you need to do in order to make clients aware of your product and start buying it. Create a list of actions that will help you develop the project from “zero point” to its entrance to the market.
Pete thought over 3 key actions:
- Buy first batch of amulets from AliExpress;
- Create an Instagram profile and fill it with content;
- Launch ads in Instagram.
Question 8: Who will I Work with?
Every startup needs to have its partners and investors. Investors will give money for the project, and partners will help you get more new clients. So, you should provide contacts with other companies. First, create a list of potential partners and suppliers, and the list of resources you plan to get from them.
Peter plans to co-work with student councils and university union committees. And he plans to give ads on student radio in the top universities of the country.
Question 9: What will Be the Price of My Product?
Write down all the expenses that will be required to develop, advertise, provide resources and make main steps. Don’t forget to analyze the market and look at the prices of your competitors. This will help you determine the price of your goods.
For example, only expenses made by Pete are: buying talismans and Instagram advertisements. He found amulets costing $2 each and the price of advertising is $5 for 1000 showings. So, Pete decided to sell amulets for at least $8 each.
Once you Have Answers to These Questions, you’ll be able to explain the point of your project to your relatives and friends. Analyze their feedback, and then understand it even better, correct and develop your business.
And be inventive, as Pete!