Startups don’t become successful by accident. Creating and growing a startup is a risky proposition and at any point in time, you are a few bad moves away from potential insolvency. This is one reason among many as to why your startup idea needs three fundamental things to be a viable strategy.
Solve a Real-World Problem
Firstly, and most importantly your product. How good is your product? For a startup to be successful you need a compelling product that solves or overcomes a real-world problem. You will find it almost impossible to find your market if you aren’t starting with an amazing product first.
Scalable Market
So, if you are confident that you have an amazing product that solves a real-world problem the next consideration is your product/market fit. Your product needs to have a market that it serves. If your product is amazing but the market is too small, then you will never achieve sufficient scale to be successful. Equally though if the market is big but the product is not a sufficient improvement on its competitors then it will struggle to find a market.
Effective Business Model
The third and final component of your startup strategy is your business model. You need to have this locked in before you start scaling as it can be harder to change later. Your business model is the how. How do you take the product you have created and deliver it to the market in a way that creates a profitable business.
Every new startup idea needs solid foundations. They form the cornerstone of your business which should stay consistent as you scale. Without these foundations, a startup will be too reactive instead of purposeful and drift from idea-to-idea. You also may end up building a product or service that isn’t actually economically viable. And that’s awkward…