Becoming a succesful Business
Consuunt’s main goal is to help you along the path from being merely a Business Idea to a Profitable Business, but which path is that?
Now we’ll explain what we consider to be the four main stages of any Business Project or Startup from scratch to a Profitable Business.
Also we’ll explain which goals must be accomplished in order to guarantee that a certain project move bottom-up, reaching new stages.
“The path of the Warrior is lifelong, and mastery is often simply staying on the path”. – Richard Strozzi Heckler
Here you have the “path of the warrior” that will be explained afterwards. It can be summarized in 4 Stages:
* Check the “Entrepreneurship Templates“: You will find a free and opened Excel with this “Pyramid” as well as a useful Checklist with all the factors we’ll describe below.
1. Idea Stage
This stage is plain.
Any idea can be in this stage since ideas, must have no constrains. You must not categorize an idea, so this is the most “creative and opened” stage.
2. Seed Stage
From an “Idea stage” to the “Seed” stage, there is a whole world.
An idea is an idea; something almost empty, but a “seed” is something that eventually would grow up, becoming a huge tree. So this seed has all the potential required for becoming a “tree”.
In order to become a “seed” you must:
- Guarantee there is a real market need:
- We’ll explain it in further sections, but basically, you must be sure that the market need does not just relies on your personal bias.
- Be sure all the team is passionate about the project:
- As you can see in the “entrepreneurship golden rules”, the first rule is bout being passionate about what you do.
- Ensure your product is not obsolete:
- Nowadays, a cellular is obsolete in 12 months, so be sure the product you are offering is not like your old phone.
3. Startup Stage
Your project reaches the “Startup” stage when it starts to behave like a real company although it doesn’t have enough resources to guarantee its long-term existence.
In order to become as “startup” you must:
- Have the Customer at the centre of all decisions.
- Not just your ideas, but real market needs.
- Have the final and right team.
- Of course, there can be changes in the future, but the “core business” management team must be completely defined.
- Have different versions of the product your offer in order to gain flexibility.
- You must always have to be opened to re-define your product to adapt the unexpected market requirements.
- Start using contacts for promoting the product.
- Have established the perfect location for launching your product.
- Either geographically or internet-oriented.
4. Market Player Stage
In this stage, basically, you are earning money. You don’t necessarily have to be rich, but you have a profitable business that pays almost all the expenses you have.
Once you reach this stage, your target is: growing in size and profitability, since you have “discovered” how to make money.
In order to become a Market Player, you must:
- Have a proper Business Plan.
- Have a proper Marketing Strategy.
- Ensure a good Cash generation.
- It does no t necessarily means to generate more money that you need, but being able to cover the important expenses.
- Be ahead of your competition.
- Maybe not be the first in everything, but at least have your market niche.
- Have a proper Price Policy.
- Have Flexibility to “manoeuvre”.
- If the market sends you “warning signals”, you must be prepared to change the course of the situation (by focusing on a different product-approach, a different target market…).
- Be in a harmonious situation with the financial institutions.
- Either you have borrowed some money or nothing at all, you should not be in a “compromised situation” with the financial institutions that could jeopardize future decisions.
- Keep focus and interest in what you do.
- Keep the entrepreneurship’s first golden rule: love what you do.
- Ensure not to have any legal issue.
- Have an exit strategy.
- In case you have any issue with any of the factors above explained, you should have a “selling” option or at least an “easy closing” chance.
- You don’t know which “bad surprises” are waiting for you… An unexpected illness, a fire in your home… Nobody knows, but you must always be prepared for something “bad” happening to you.
If you love what you do, and also think about potential issues you could have, you are in a good starting-point for moving bottom-up through the startup pathway.
While in both “Idea” and “Seed” stages, your main worries involve the proper market focus for your project; in “Startup” and “Market Player” stages you must ensure a sustainable environment where your project is able to grow both economically and qualitatively.