Points To Keep In Mind When Creating A New Business
Feb 21, 2022
1. Market size
Market is the size of the group that is likely to be recognized. For example, the market for soccer is large, but the market for soccer balls in Japan is small, so even if we manufacture soccer balls, the market for it will not be large.
A good way to measure the market is to measure the number of leads you plan to acquire. The more leads you can get without paying for email or anything else, the better. If you have to pay for every lead you get, it will cost you a lot of money and you will be far from the break-even point where you can make a profit.
Many people who start a new business tend to run away from the work. In some cases, they just do the volume of work and avoid being creative. However, the amount of leads is limited. If this is the case, it is advisable to be creative again and again to maximize the effect with the limited amount of emails possible.
The market should not be judged by mere external materials, but should be targeted at those with a high reply rate and interest. Considering the market x reply rate will give you an idea of the approximate size of the market.
2. Financing
Many people have the misconception that obtaining funds from venture capitalists is finance. This is because they do not understand the cost.
It takes time and money to (1) contact VCs multiple times, (2) get them to form a consensus, and (3) get them to invest. In addition, the other permanent costs of getting them to become shareholders are not insignificant.
The first thing to think about is sales, and it is normal to make sales first and then create the product, which will improve the quality of the product. Therefore, it is necessary to devise a way to sell the product even if there is no product, and it is also necessary to make a detailed calculation of how much the unit price will be even if there is no product.
If it is difficult to do so, a loan such as an equity loan should be considered. Since it is not equity, the management cost is low. As long as the loan is not a joint guarantee, it is advisable to take care of it.
3. Making Friends
Making friends is the biggest challenge. Most people do not want to work for free, nor do they want to take risks. They want to make a profit, but they don’t want to take any risks. Giving away shares at this point is dangerous and should not be done; giving away shares when you don’t even know if it will last a year is asking for trouble. However, if you really want to give them the shares, it would be desirable to use reverse-besting and have a system that allows them to automatically collect the shares if the business is interrupted for any reason. It is necessary to be able to prove that the rights have been clearly transferred through dismissal or other means.
For those who have worked in marketing and sales, it may be difficult to find a CTO, or a COO if the CEO is a technologist. Gradually, the level of enthusiasm and granularity becomes different, and there is a lot of bickering. In corporate activities, splitting up is a bigger blow than running out of cash flow.
It is advisable to resolve the issue through outsourcing or other means if possible. As much as possible, it is necessary for a new business to find the right people by meeting people and having meetings with various people.
In the beginning, you will have to deal with a lot of things to do, so it is preferable to have people who are willing to do things anyway, rather than people who are just opinionated and slow to do things. As a result, there will be many patterns of young talent.
4. Aim For Quick Results
Most of the time, companies do not fit into the market and go out of business. People understand this and adapt to it. They delay time with pretty webs, pretty products, and ceremonies with a lot of people involved. As a result, the product is released late, and it is not until much later that it is discovered to be a failure.
In fact, we have no choice but to assume that failure is 9 and success is about 1. The reason why they seem to be successful is because they repeated many small failures and made the most of those failures.
You need to set a goal and verify whether you have reached your goal by looking at the quick results every three or three months. People’s passion wakes up in three months. Therefore, some kind of visible change is necessary every three months, and we need to consider the means to achieve this.
5. Develop a Marketing Strategy
The marketing strategy should actually follow the needs of the customers.
The first step is to clarify the objectives. Probably, the main objective is to sell the product. You need to think in terms of how that product was sold. To make sure that the presentation is reproducible, the founder needs to review that presentation many times. Then, if the parts parts are easy to explain, they can be made to be done by other sales forces. At that point, talk scripts will be prepared. Without these, the founder cannot make it easy.
1) What channels?
Even if you say you have a market, unless you know the channels, you are just painting a picture. How to get a list of customers is the key. There are various methods, such as whether you should belong to some organization, or whether you should set up an email campaign from your website. The bottom line is that you need to know which channels will allow you to send to your prospects in an easy and credible way.
2) Can you have continuity?
No matter how many channels you have, people’s memories are short-term and they will soon give up on them. Therefore, it is necessary to create something that people will remember over and over again with a theme they are interested in. Content creation is an important aspect of market penetration, and it must not be neglected.
3) Keep it multi-channel
People do not believe in a single channel. If there are multiple contacts and they are on different channels, they are more likely to be novel and interested. Unless, of course, you have interesting material available, people will quickly forget about it.
If it is sent out through various media such as blogs, landing pages, Twitter, Facebook, etc., they will trust it through repeated contact.
4) Find a partner
The impact of marketing to small stores is small, but if you have 100 stores, you will attract more people. If each store attracts 5 people, then 100 stores will attract 500 people plus customers.
In other words, building a network of partners and associates will reduce the amount of work involved in sales, and with fewer people, you can get more results.
Similarly, finding outsourcing partners will reduce your own workload and allow you to focus on your business. Focusing on your strengths, in other words, is what will make you profitable.
6. Develop a PR Strategy
Automation is a matter of life and death for the founder. Mass media and other exposure is the solution. How to get people interested in your business will reduce the cost of explanation, sales time, and recruiting opportunities. Therefore, it is an essential skill for new businesses.
In addition, there are cases where the introduction of the system is rejected as undesirable if it is in a legal gray zone. In such cases, it is necessary to involve the government and respond to the situation by establishing organizations, self-regulation, and legalization. In such cases, it is not acceptable to not consider PR at all.
7. Objectivity
It is impossible for each new business to have the minimum skills mentioned above. This is separate from whether they belong to a company or not, and people with such dexterity are rare.
The more passionate you are about something, the more you become attached to it, and the more biased your thinking becomes. It is necessary to have people who can let go of their passions. The people who can give it a try are usually from outside the company.
8. When doing these things in a new business within the company
When doing the above within the company, there is a lot of bias. The work becomes purposeful and the internal coordination becomes purposeful. If there is no profit, the members of the company will look at you more strictly. And if there are no results, the survival value of the division itself will be questioned, which will ultimately lead to a decrease in motivation.
What our firm can do for you
1) Commitment: We can hit the wall until you build a business model. We can work with you to build a business model, and we can work with you to develop the channels for selling it. We can also work with you to create a framework for your operations.
(1) We can set up a company, but if you are looking to cut costs, we can suggest a cheaper method.
(2) We recommend outsourcing accounting as early as possible to create an environment where you can concentrate on your business. It is poor practice to have to complete tax returns and other procedures at a critical time.
(3) In terms of creating friendships, we suggest an agreement between founders and other methods. Outsourcing and other various methods can reduce risk and create a stress-free environment.
(4) Creating a community of sales partners. When selling, there are cases where unfair contracts are made in various ways. In such cases, we can clarify what kind of risks are involved and advise how to negotiate to protect our interests. There are many ways to do this, but when you are a player, you often forget how to do this and just take the other party’s word for it. In such cases, it is valuable to have objective advice.
5) Stability of operations. If the operation is not stable, no matter how well the system works, it will not lead to a sale and you will suffer. Also, if even one person has a different opinion from the person in charge, there is a possibility of deadlock. In such a case, we will advise you as an expert on how to handle the situation and take the proper approach.
6) Partnership. In most cases, the other party may contractually trap you in order to swallow you. We will read such risks as soon as possible and rewrite them for the benefit of both parties through negotiations.
7) PR measures. We can advise you on what to say so that you do not make unnecessary commitments (contractual details). We also provide appropriate communication to the government and mass media to avoid hostility, and provide necessary legal information and appeal from a professional perspective.
Managers and those in charge of new businesses are often lonely. They do not know who to talk to, and in some cases, this can weaken their mental health. In this case, we can help you objectively determine what you need to do and create a list of things to do so that you will be less confused. Based on our many years of experience, we know what to explain within the company and what to explain to society (we can also say that we can be objective as a third party), so we can handle such matters as well.
(8) As a canary, I can also handle major risks. I have seen major crimes and troubles in my life. I can predict what is dangerous based on my experience, and I am willing to give advice on such matters without discernment.
(9) Finance. There are various methods of financing and cash management, which can be overlooked when you are in a hurry. We try to recall what the financial institutions and others are thinking and give our opinions on such matters. As a result, it is only good if the cash flow is turned around, and we can think about how not to interrupt the business and how not to affect it, and express our opinions calmly.
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