Updated: Feb 28, 2020
Did you know that 9 out of 10 startup businesses fail -- especially those run by young people (millennials between 23-38 years old in 2019). A CB Insights poll suggests that the lack of market need, insufficient funds, wrong team members and so on are likely the reasons for the failure.
This means that startup founders especially millennials need to hash out certain things before setting up a that business:
1. The Market: If you hope to be a successful business owner someday, then it is important that you first identify the needs, basic income level, and cost of living of the people you are targeting. Since people largely buy products based on their purchasing power, there is very little you can do if the people you are targeting do not have need for the product. For example, Nestle water is branded for elites, while sachet water specifically serves the man on the street -- you never see a TV advert on sachet water but they sell out. Know your market, it saves you money!
2. People Network: As a business-owner, you need people to patronize – so you need to up your networking game. If you do not start networking before you delve into that business then it is already doomed to fail.
3. Business plan: Before going in, it is important for the founder to draft a business plan. Many people underestimate the importance of a business plan, it is like google map not just for you but your potential staff and investors. In the event of a roadblock, a business plan is a very useful guide.
4. Capital: Contrary to popular opinion, capital is the least of the things a business needs to hit the ground running, but it is essential nonetheless.
Photo credit: Fortune, 2014