3 Essential Steps for New Startups

Most entrepreneurs truly believe that their ideas have the potential to make them wildly successful. That turns out being true for some. But not all startup ventures reach the level of success their founders expect, and some are complete failures. Adding the 3 steps outlined here to your startup plan will improve your chances of a successful launch.

Objectively Assess the Need

It’s all too common for would-be entrepreneurs to think of ideas for products or services to sell, and quickly jump in with both feet trying to market that product or service without objectively assessing the need for that it. Here’s a stark reality: if the market doesn’t perceive a need for your product, it won’t sell; and you will have wasted valuable time and money creating and marketing your product.

Supply and Demand

Identify your Unique Selling Proposition

Whether you’re launching a completely new and revolutionary product or something that’s similar to what others already sell, you must identify your Unique Selling Proposition (USP). Once you’ve developed your USP, incorporate that into your marketing strategy. Remember, just because you inherently know what makes your product better than similar offerings doesn’t mean your prospective customers will.

Plan Ahead

Virtually every startup is fraught with potential problems and barriers. What those might be for you and your startup depend largely on what you’re bringing to market. For example, some product categories are governed by strict regulations, often from multiple levels of government and multiple agencies within each level. In fact, dealing with regulatory requirements is often the single largest expense associated with creating a product and bringing it to market. If you don’t have the resources necessary to navigate the regulatory environment, you could find yourself dead in the water before you even manufacture your first product. But that’s not the only potential problem. In fact, there are so many, we can’t begin to list them here. But we can tell you that you must objectively brainstorm for potential problems that you might face launching your product, then develop strong contingency plans to deal with them, if and when they arise.

Ideally, you’ll incorporate these steps into your plan before you launch your startup; but if you’ve already launched and haven’t completed one or more of these steps, you may want to put everything on hold until you complete the missing steps.

Featured Photo by Mari Helin-Tuominen, Supply and Demand Image from How to Estimate Market Demand for a Product?

Are you a Freelancer, an Entrepreneur or a Salesperson?

Many people enter the world of entrepreneurship and freelancing work because:

  • Opportunities are available and our culture encourages it,
  • They want to be their own boss,
  • They have the skills that the work requires, or
  • They’ve heard success stories that make them believe it’s possible.

However, many people who go into business for themselves have no real business management experience or other relevant training. They also don’t realize until they’ve begun their business journey that having some type of sales skills are crucial to the work.

The sales process consists of several key steps.

  1. Having or gaining business knowledge,
  2. Prospecting,
  3. Approaching the potential client,
  4. The needs assessment,
  5. The presentation,
  6. The close, and
  7. The follow-up

Every sale we make, whether we intend to do it or not, follows this process. Sometimes it just happens naturally. Sometimes, (especially online), customers walk themselves through their own sales processes.

Most experts believe that customers buy for emotional reasons and also because they trust the seller. You will find many marketing gurus, think-tanks and agencies trying to sell you ways to earn potential client trust; many of which are expensive, time-consuming and being done by everyone.

Large brands and companies with good funding resources can afford to invest in substantial marketing campaigns. However, for most freelancers and entrepreneurs, this type of investment is impossible.

Salesperson

How then can you build customer trust and make sales quickly and easily?

Researchers Thomas Travisano and William Brooks stumbled on an interesting fact about the emotional triggers that compel people to buy. They interviewed all types of B2B decision-makers and consumer buyers to figure out what makes them buy some products and services and not others for their book – You’re Working Too Hard to Make the Sale!

They learned that customers buy most frequently from people and brands they feel understand them.

Many sales professionals learn to approach the sales process by finding out what the client’s needs are, and then, telling them how the features of the product or service they sell can meet those needs. Though this is often an effective approach, the researchers found it was more effective to couple this with a sales process carried out by a person that understands the buyers underlying emotional needs. The seller that best understands those needs is the seller that also shares them now or shared them at one point in his or her career or life. An office manager turned sales rep, therefore has a good chance of making sales to office managers that are decision-makers and purchasers of office equipment and so on.

On a personal level, think how much easier it is to take restaurant recommendations from someone you know enjoys the same foods that you do. Similar people have similar pain points. Understanding and addressing pain points are a huge part of making any sale.

Lessons Learned from a Lifetime Dedicated to Entrepreneurship

If you’re planning to start a business or a startup, it’s valuable to learn about life and the flow of business from people who have navigated their own paths to success. Though it’s true, no matter who you learn from or what college you attend, ultimately, everyone has to make his or her own way to success. However, no one can make it without borrowing a proven effective strategy or two from someone else.

David Turner Morgenthaler died in June of this year after achieving great success with his venture capital firm, Morgenthaler Ventures.

Turner, known as a successful investor, entrepreneur and philanthropist will also go down in history for his instrumental roles in amending ERISA legislation and lowering the US capital gains tax to 28% from 49%.

Small Biz Trends contributor Scott Shane shared some of the valuable business lessons he learned from Morgenthaler over the years.

What Can Entrepreneurs, Startup Founders and Investors Learn from Morgenthaler?

On Startup Founding and Success

  • Startup success is challenging. Most of the factors that contribute to a startup’s success aren’t factors founders can control. In fact, Morgenthaler equated startup success to, “making lightning strike the bottom of a swimming pool on a sunny day.”
  • Startup investing isn’t a guaranteed money maker. Startup investments only produce returns about 10% of the time. Investors should be prepared to lose money often.

On Investing, Entrepreneurship and Business Strategy

  • Successful investing can come from doing adequate research and knowing everything about a company’s management, their organization, their market and their industry.
  • However, the most important element in the equation is the entrepreneur or management team. The right person/people can change organizational factors and create success. In fact, he felt most startups and entrepreneurial endeavors failed because the business owners and founders, (the people), made mistakes.
  • Successful business heads gather in places where realistic success is plentiful. They leave dead places where new business and investment can’t flourish. This is why you see so many entrepreneurs in Silicon Valley.

On Intelligence

  • Intelligence is not the same thing as getting a lucky break and profiting from it.
  • It’s not being an intellectual snob and discounting the input of everyone around you with a good idea; and
  • Good ideas must also be provable. They must be possible. They must conform to the standards of natural laws like gravity etc.

Great Accelerators and the types of Startups they work with

In many ways, founding a startup is more challenging than starting a traditional business. Of course, entrepreneurs want to make money when they start a traditional business. However, startup founders must prove that their idea will grow into a large corporation. This is quite a bit of pressure.

For this reason, startup founders are a unique breed. Luckily, there’s also a unique source of help if you alone or you and your team are brave enough to say, “One day this concept or product will be as big as Facebook.”

There are many startup accelerators that offer startup founders access to

  • Financial assistance,
  • Specialized business training,
  • Counseling,
  • Legal guidance, and
  • much more.

Most accelerators like to focus on one type of startup. For example, some only work with tech startups. Others work with startups that have a certain structure, like team-based startups.

What to Expect

Most accelerators will offer you mentorship, workspace, operational support and access to funding via introductions to angel investors or outright payments. Program durations run anywhere from a few weeks to a few months. Many programs are quite competitive and only accept 2 to 10 startups a year.

Startup Accelerator

Here’s a list of great accelerators and the types of startups they work with.

Tech, Web, Mobile, and Science Accelerators

  • For innovators that plan to combine technology with entertainment to create brand new experiences, Disney is interested.
  • Blue Startups in Honolulu, Hawaii, works with companies focused on technology. Blue pays special attention to startups that want to do business in both the US and Asian marketplaces.
  • StartFast in Syracuse, New York works with startups in the web, mobile and software industries.
  • The Illumina Accelerator program is geared toward scientists in the progressive fields of genomics, clinical research and applied sciences.
  • LightSpeed Innovations in Southern California works with startups in the aerospace industry.
  • Luma Launch, located in Santa Monica, CA seeks to works with startups that combine content presentation with technology.
  • VentureOut in New York City works with technology startups.
  • The SaltMines Group in Vero Beach, Florida works with startups that have designed innovative social media products and mobile apps.
  • The Yield Lab located in St. Louis, Missouri offers help to agricultural technology companies whose product offerings and business concepts encourage sustainability.

Women, Minority, Social Change and Team-Based Accelerators

  • MergeLane in Colorado focuses on women-based startups and the challenges those founders face.
  • Startup52 is a New York City-based accelerator program. This program only works with startups with a strong and diverse team of founders.
  • Capria in Seattle, Washington looks for startups with a product or business concept that focuses on making a global impact, especially in developing countries and emerging markets.
  • Cofound Harlem in New York City has the goal to launch 100 new Harlem-based, community impactful companies by 2020.
  • Gener8tor has locations in Milwaukee and Madison, Wisconsin. The accelerator works with startups that have a strong team of founders.
  • The Sixers Innovation Lab, a JV between the Philadelphia 76ers and the Kimball Office, is looking for promising startups in any industry. The Innovation Lab wants to stimulate startup community growth throughout Philadelphia and New Jersey.

Product Design

  • Matter in New York City and San Francisco is looking for startups that have designed a product that the accelerator can quickly bring to market.

Marketing

  • The Brandery in Cincinnatti, OH offers $50,000 in outright funding and works with business in the marketing, branding and design fields.

Retail and Consumer Goods

  • XRC Labs in New York City is great for startups in the consumer goods and retail market.

As you can see, advancing technology and science, working with others and working towards social change can give your startup a really big foot in the door with many accelerators. However, there are accelerators that fund good startups in all industries. You just have to know where to look.

In addition, for further guidance, Startup Next is a pre-accelerator program that will help a promising startup in any industry get into a top accelerator program.