22—Vanguard, THURSDAY, OCTOBER 22, 2015
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The more work you do at the beginning of the start-up phase, the more heartache and grief you'll save in the long run
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Avoiding wastage in startups
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UILDING a start-up is like falling in love. You find the “perfect one”, you lose all sense of reason, and judgement flies out the door. You’re likely to make mistakes. The problem with the startup culture is this irrational blindness, and it leaves a trail of wrecked start-ups. Everyone knows that building a start-up is tough, but many entrepreneurs are not analysing their own start-ups with enough objectivity. If you don’t want to waste your money (or life) on a failed start-up idea, then you need to ask the following questions.
If you are battle tested before the battle begins, then you are in strong shape for survival The very first thing you want to do to your start-up is try and kill it. If your start-up is going to fail, like 90 percent of start-ups do, then you want it to end earlier rather than later. When you emerge into the market, your competitors will be trying to kill you anyway. Do unto your start-up what your competitors will do unto you. If you are battle tested before the battle begins, then you are in strong shape for survival. Try and kill the start-up. Will it die? If the answer is “no,” then put your heart into it, and do it. Funding Do you have enough financial backing to design, build, test, and market? How far will your money take you? Take a longview with your funding strategy. Your capital should include a sufficient amount to take you to a comfortable point in the possibly distant future beyond the marketing phase. Do you have a realistic capital requirement? Capital requirements are a big issue that you need to tackle early on. Ideally, you can build a scalable business with no
funding. Is there a compelling exit strategy? Every investor wants to know how to move out of the opportunity if it starts to smell funny. As you shape your business plan, be sure to devise an exit idea for the investors. They’re going to be looking for it. Product Is there something that distinguishes my product/ service? Why does the world need your product? If it’s not somehow different or better than the next widget, no one is going to look at it. Do I have an innovative product/service? When smart investors look for their next project to fund, their eyes are trained to identify first movers - products that sparkle with innovation. These are the kinds of products or services that explode into industries with unshakeable power. Innovation may be a buzzword, but it’s still important. Does this product/service solve a real problem? Successful products and services solve real problems. Market Are there strong barriers to entry? The barriers to entry are any obstacles that make it hard for a start-up to enter the market. Start-up entrepreneurs know that the going will be tough. It’s important to consider how easy it is for others to replicate your product, mimic your idea, or steal your intellectual property. The worst thing that can happen is to pour your life energy into an idea only to have it stolen, copied, and sold - whisking market share right from underneath your feet. Choose a niche in which the barriers to entry will form a strong defence against future competition. Generally, the more work you do at the beginning of the start-up phase, the more heartache and grief you’ll save in the long run. It seems oddly sadistic to try to kill your own start-up - an idea that you’ve incubated and cherished for so long. Even though you’re biased in its favour, try to take a step back. Give it the cold and calculating stare, moving through each of these questions.
BUSINESS NAIRA EXCHANGE RATES (21/10/15) Currency DOLLAR STERLING EURO FRANC YEN CFA WAUA RENMINBI RIYAL KRONA SDR
Buying(N)
Central(N)
Selling(N)
195.98
196.48
196.98
302.8479 222.5157 204.6575 1.6322 0.3207 276.4944 30.8626 52.2599 29.8218 277.1941
303.6205 223.0834 205.1796 1.6364 0.3307 277.1998 30.9418 52.3933 29.8979 277.9013
304.3932 223.6511 205.7018 1.6405 0.3407 277.9052 31.021 52.5266 29.974 278.6085
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Tips for succeeding in business By Richard Branson
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AM often asked how I got to where I am, and how the Virgin brand achieved all that it has. While, there are no shortcuts to success, certain attitudes and actions can help. Here are my top 10 tips for doing business the Virgin way: Follow your dreams You will live a much better life if you pursue your passions. People who work on the things that they love usually enjoy life more than everyone else does, simply because they are chasing their dreams. Do some good If you aren’t making a difference in other people’s lives, you shouldn’t be in business - it’s that simple. Companies have a
responsibility to make a difference in the world: They owe this to their community, their staff, their customers, everyone. The amazing part is that doing good is also good for business. Believe in your ideas Give your venture everything you’ve got. A passionate commitment to your business and personal objectives can make all the difference between success and failure. If you aren’t proud of what you’re doing, why should anybody else be? And don’t get suckered into blindly pursuing profits and growth. If you stay focused on being the best at what you do, it’s more likely that the rest will follow. Have fun along with your team members Fun is one of the most
important - and underrated components of any successful venture. If you’re not enjoying yourself, it’s probably time to call it quits and try something else. If your employees are engaged and having fun, and they genuinely care about your customers, they will enjoy their work more and do a better job. Hire people who look for the best in others, who lavish more praise than they dole out criticism, and who genuinely love what they do. Don’t give up On every adventure that I have undertaken - whether it was setting up a business, flying around the world in a balloon or racing across an ocean in a powerboat - I have faced difficult moments when the easiest thing to do would have been to throw in the