Every small business aims to succeed in its venture. Why put your sweat, blood, and efforts and watch your business fail? And yet there are many who do. To succeed in your startup, it is important that you abide by several principles of startup. So if you are wondering what they are, then sit down and keep reading this article.
These principles can definitely help entrepreneurs and startups. All you have to do is abide by them in order to succeed. That is what this article is about. We will discuss the 5 very important principles of startup that will be highly beneficial for entrepreneurs. There are more than 10 principles in creating a business but we will talk about the 5 most important ones among them.
5 Principles Of Startups For Entrepreneurs
There are many startups that have amazing ideas about their businesses but do not know how to implement and because of this lack of knowledge they end up creating a mess. But if you follow these principles of startup for your business then nobody can stop you from succeeding.
1. Customer Obsession
Let us begin with the principles of startup. It is straightforward, simple, and a no-brainer at all. We entrepreneurs prevail because of the customers and also for the customers. Our failure or success is illustrated by our ability to receive and retain users of our services and products.
And you can do it only when you put the user first. Do not pick an idea or a feature or issue to solve or begin a business as you like it or you believe it is a good one and it will work. Instead, put the consumers first and ask them these questions.
- Will they like your concept?
- Will the feature matter to them?
- Is the issue something they really wish to be solved?
- Will your service or product be the right solution for them?
And before making a small or big decision, ask yourself, “what will your customer say?” Remember, it is convenient to put things like revenue, sales, profit, conversion rate, margin, revenue for each transaction, and so on first as those are the numbers that state the success.
But you will not get there if you are not aiming at the customers as it is your users who drive those numbers. Whether you fail or succeed depends on how much your users like your product or service, and that will occur only when you aim at them.
Entrepreneurship arrives with ownership of things you do and create, and ownership is about two things
- Prioritizing long-term over short-term aims and
- Acting on behalf of the group and the company.
As an entrepreneur, everything is your duty, ideating, prioritizing features for the MVP, validating, selling it to the first users, scaling, hiring, and everything else is your job. While doing them, you should always take into account long-term goals over the short-term ones. This is one of the most important principles of startup that you should remember.
For instance, you might be tempted to choose a feature that will help you sell more units the next day, which in turn can help you in raising funds and valuation. It is a reasonable temptation, but you should avoid depending on it completely. As doing so might create wrong expectations and result in disappointment in the future, hence hurting your sales numbers and reputation.
We have seen it occur lots and lots of times and good entrepreneurs encounter loss because of that. Some select to sell at low prices to attain their first thousand customers or increase their customer base at a faster graph, but then it becomes near to impossible to raise the prices, and economics let them down and fail. As much as tomorrow is crucial, your final goal is way ahead of you. So do not lose your sight.
3. Have The Backbone To Disagree And Commit
As an entrepreneur, there will be situations when you are required to put your foot down and say in clear words that you disagree and moments where you are required to throw all your support behind an idea or something similar to that. And you are required by the backbone to do both at the same time if needed.
As the responsibilities and commitments evolve, you will feel it becoming too hard to say the straightforward yes or no. You will always be tense about what if you make the wrong decision. Too much is at stake, your team, your supporters, your success, and your investors. But the fact remains, as the responsibilities and commitments evolve, it is imperative to say no definitely and also say yes affirmatively at times. So do not think twice or hesitate. Do what it takes. Have the real backbone.
Another no-brainer among the various principles of startup. Spend wisely or do not spend needlessly. It might look repetitive, but it is probably the thing that can break you or make you. In the early phrases, you are probably operating everything on your savings or the little fund you somehow managed to raise from family and friends or living off your credit cards. Every penny is important until you receive your first sale.
Only spend on things you really need, not the ones you desire. Before you take your credit card out for spending on something, ask whether it is something you really require and do you need it right now?
Do not purchase something because it might become handy in a couple of months or a year. For instance, you might consider purchasing a survey tool as it is available at a considerable discount. It does make sense to save some money on something you might use in the future.
But before purchasing, do the math. How much is the value? How much are you saving? How much will you be ready to spend while parking it without using it? Can you use the cash on something more crucial right now?
Do the math and then plan. Remember, hundreds of businesses have failed because they did not have the cash to spend at the time of crunch, sometimes too close to their finishing line. Do not change into another sad story of that sort. Be frugal and incubate these principles of entrepreneurship.
5. Earn Trust
Trust is the deal-breaker, and you will require it in every step of your entrepreneurial journey. When you are aiming to convince your family that your business concept is safe and sound, you will need them to trust that you can pull it off. Otherwise, you might not get their consent.
Your team should trust your concept and notion and your implementation skills to stay committed to you during volatile times. Your perspective should trust that your solution is better than that of others to purchase your service or product. Your investors should trust you, and your item will be a safe bet for their investment and they should bring good returns to invest in your idea. If you want principles of success in business then you will have to follow this.
It is impossible to live a day without requiring someone to trust you. And trust does not happen overnight. You have to construct it brick by brick via your actions and your reactions. It requires hundreds of correct activities to gain trust, but one wrong step to losing everything. So aim at earning trust and also retaining it. This is the last but is an important point among the 5 different business principles in creating a business.
The Bottom Line
As we said, it could be a deal-breaker. And these are the 5 principles of startup we have handpicked for you, principles we believe can navigate you to success like Amazon. But we suggest you check the rest of the principles, and you cannot go wrong following them. Based on these principles you can grow, conceive, and also expand your business. Each business requires a shape and also a structure and these will offer your company with both of these elements.