Business Analysis in a Startup: The Only Way to a Unicorn is Through Homeworkby QArea Team on July 27, 2016
What is a startup? Various sources and encyclopedias give us different meanings of the term. One of the basic definitions is provided by our beloved Investopedia. It says: a startup is a young company that has just begun to develop. In essence, this is true.
Decades ago, giving money to such startups was considered a bad idea. However, technological progress created a healthy environment for many small companies to arise, riding their creativity. Nowadays, we refer to such actions as to “venture investments”. We analyze the business model of a startup. We consider aiding it with coin.
Why Do Startups Shine Today?
There are multiple reasons for the great success and very survival of startups. Numerous specialists and respectable people have given us some ideas of why small companies driven by enthusiasm become successful businesses:
- Constant innovations. Many consider startups to be a whole culture focused on searching for new ideas and improving existing business models. When the entire industry feels stagnant, a shake-up can make it more fun both for industry leaders and customers. Successful innovations are mimicked by competitors and loved by consumers.
- Scalability. Startups are easily scalable. Ambitions and dreams empower young entrepreneurs, as they push their creativity to the limit. Generally, startups have a lot of room to grow. A good boost is all that is needed for a small company to become a big fish in the pond. While some fail to develop into something huge, many businesses expand and evolve.
- Interesting solutions. Any startup lives in an environment where nothing is certain. It’s exciting. Many customers and professionals want to see creative problem-solving, and they often support up-and-coming startups with their hearts and wallets in order to see if a new business model can work out.
- Relatively small budgets. Many startups do need a powerful start and, thankfully, it’s not that expensive. Many successful companies received the first push from some kind of a crowdfunding campaign. Numerous projects received sponsorship from minor investors.
We can put all the above in a very simple statement: all you need to start a small business is a creative idea. Everything else comes in a package. But if it’s so simple, how come there are thousands of companies that fail to live another day? Mostly because having an idea and making it a reality are two completely different things…
What Are You Afraid of?
As stated above, we build our businesses in an environment that is uncertain. Young entrepreneurs were recently surveyed about the threats they are afraid of as business owners. The survey highlighted five concerns:
- The Government. Various regulations and rules often create obstacles for small companies, limiting their potential. This is a legitimate concern.
- Demand. Obviously, the demand for your product dictates whether your company is successful or not. We will talk about this further in this article.
- A great idea will always find a contributor to its success. However, this doesn’t mean that you don’t have to search for such contributors. Many entrepreneurs are afraid that they’ll lack funding.
- Social security burden. Small business owners have to pay for welfare and expenses related to employees. Even a relatively small number of employees can heavily affect the company’s bottom line.
- Yes, entrepreneurs are afraid of each other and are afraid to step on the uneven ground that is business. This factor is also a big focus point for us in the article.
Startup Development Services
Sadly, we can affect the decisions our government makes, only once in a couple of years. Regulations or new taxes can destroy your business model and that’s something we can’t help you with. The same goes for funding and managing your bottom line. Fortunately, there are two crucial fear-factors your startup will overcome with our help!
A startup development agency is a team of professional business analysts. These specialists have extensive knowledge of the market and customer behavior. A BA can assist in polishing your business model and is an essential member of any startup team.
Apathetic demand. In order to improve the sales of your product, you need to identify the structure of the demand in the market. A business analyst conducts heavy research of the market, develops and polishes a business strategy, and finds the best ways to improve your products and services.
Imagine that your business model looks like this: you want to sell candy in the evening near a school. The sales are not covering your expenses so far and you invite a BA. He closely inspects the market and tells you that you need to pop a candy on a stick and sell in the afternoon when children are going home. Lollipops sell way better, simply because they are easier to eat. This is what a BA does for a startup… in a more complex way.
Competition. Knowing who your competitors are and what their flaws are is essential for your survival. The market is naturally uneven. Older companies have the upper hand over newcomers, bigger companies can afford expensive marketing tools. A BA finds ways for your company to avoid competition in some areas.
Let’s return to our example. You are selling lollipops now and the business is going well. However, multiple competitors come into play. You ask for help again and your BA comes to your aid. This time, he tells you to improve the packaging and give a small discount to ensure loyalty from your customers. Other competitors don’t do that and now you have the upper hand and sell more candy.
Your idea may be the most creative in the world. It can be able to change the world, but if it fails to develop into something meaningful, it will be forgotten. A startup outsourcing development company can help you to survive in the very beginning of your journey to a profitable tomorrow!