The Who, What, Where, When And Why For Startups
The last two years have been splendid for aspiring entrepreneurs with numerous startups mushrooming across different sectors. The year 2017 has shown the same growth with startup ecosystem getting bigger and better. The fact remains that with internet coming of age, it has become far too easy to launch an online business.
Do you have a business idea? In a matter of days that idea could easily turn into a business without any effort.
And, with startup friendly ecosystem among investors, one can easily get funding to take it to next level.
However, in order to make sure that your online business is capable of making it in the long run and growing the right way, you need to know a thing or two about,
who your audience is,
what are you offering them,
where you would be providing your service,
when is the right time to bring your product/service to the market and why would people choose you.
These are the five Ws that every aspiring entrepreneur needs to answer before taking a step forward towards bringing their idea to reality. The reason why most of the startups fails within first two years of their inception is lack of direction and more importantly the ignorance of these 5 Ws.
We at FATbit have been helping startups in creating a niche for themselves and developing solutions that would make it easy for any aspiring entrepreneur to bring their idea to reality. However just having a robust platform will not ensure success in the long run. For that you need to take into account the above mentioned 5Ws. Let us take a closer look at each one of them.
WHAT (what are you selling)
The idea of a business be it online or offline starts with what you want to sell. Be it a product or service you need to first identify what is it that you will be offering to the consumers. This is the most important aspect of your business and lays the foundation. The rest of the Ws depend on it and any change made to this directly alters them as well.
So how do we find out what is that we should be offering?
- Go through established blogs in finding out trends that are shaping the market.
- Do a market research on identifying voids that need to be filled.
- Find new emerging areas which have huge growth possibility in the coming years.
- Identify offline sectors that would revolutionize after going online.
All this will give you a clear idea as to what product or service you should target when it comes to launching your online business. For example – nowadays when it comes to products, launching an online grocery store is highly lucrative and when it comes to service, an online professional search marketplace has huge growth prospects.
Suggested Read: 6 Proven Business Growth Strategies for Startups
WHO (who is your target user)
This is somehow the followup question to “WHAT” and revolves around who is it that your business model targets. Knowing your target market, inside and out, is somehow one of the most important criteria that can ensure success of your online venture. This includes age, gender, average income and most importantly the problem.
Now you must think, how does identifying the problem, give any insight to who should you be targeting. Let us solve this question with an example. Consider this – you decide on launching an online grocery store, which takes care of the first W. Now in order to identify who is your target user base, you need to first address the problem that you would be solving. Online grocery store solves the problem for those consumers who do not have time to go to local grocery store and buy items. This would include working individuals, or people who live far away from the local grocery store. This way you can easily identify your target users and it will also be helpful in devising your marketing strategy.
WHERE (which areas do you want to serve)
Traditionally, when someone pondered over the idea of launching an offline business, one of the questions that clouded their minds was where to establish it? The same goes for online businesses. Although internet has opened the gates for businesses to serve global community, one still needs to be specific in areas that they want to serve.
- One reason behind this is the demand for the product and service that you are offering. It is always advised to serve the areas which have the highest demand for the product or service you are offering.
- Second is the maturity of market, which is one of the biggest reasons behind failure of high potential business ideas. A business idea which has huge potential in a market such as San Francisco, will not have the same impact in area such as Kansas city.
- Third is the reach of your business. Although internet has surely paved the way to cater to global populace, there are certain business models, which require offline reach. For example online grocery store or an online food ordering and delivery business would require you to have an offline reach to areas that you want to serve.
- Fourth and finally the most important is the follow up of your answer to second W (who). The answer to your target user base will put some light on the areas that you should serve. The bottom line is that your business should be where your consumers are.
Some aspiring entrepreneurs often make the mistake of serving areas well beyond their control, which often leads to wastage of their resources. It’s important to always analyze the target areas beforehand to get better returns on your investment.
WHEN (When is the right time to launch it)
As already discussed currently an online grocery store is one of the most lucrative business plans to make nowadays. But the fact of the matter is that there is a time when the market is ripe for launching a particular online business. Consider this – most of you might have not heard of a name Webvan. It was the first online grocery store that was launched in 1998, but went bankrupt within 3 years. The reason was that the market was not mature for that business idea. If the same had been launched now, it would have yielded immense success.
This is why you must also take into account the fourth W into consideration. Your business idea, technology and execution might be perfect, but if the market is not yet ripe for it, then it will not yield any results. Ecommerce has been around for more than a decade, but its popularity only came forward with online security getting a boost and increase in internet penetration. The bottom line is that merely having a killer idea is not enough, you need to also monitor the market and wait for an ecosystem in which it will yield maximum results.
WHY (Why choose you)
You have a killer idea about an online business, you have identified your target user base as well as the service areas and the market is also mature for it. Does this mean you will achieve success no matter what? One thing that is common among all emerging business models is competition. You might be the first mover in the market, but it does not mean that you will be the only one in the market. Soon you will see competition from new startups, which would be offering the same service, targeting the same user base or serving the same areas. This is where the last W comes into action.
In the current market dynamics where competition is inevitable, you need to differentiate yourself from the rest or have a first mover advantage in order to achieve success. The best to do so is identify the core features first and then promote your startup based on them. It will entice your target audience to choose you over the competition.
How (how to bring the idea to reality)
Till now you have gone from pondering over the idea of a startup to the reason why consumers would choose you. There is another question that aspiring entrepreneurs must ask themselves, to ensure success- how to bring the idea to reality?
In the current market dynamics, most of the online businesses rely on readymade software solutions, which not only offer faster implementation but also do not require major technical knowledge. We at FATbit have been helping aspiring entrepreneurs with ready-to-launch software solutions across a mirage of areas. These software solutions are not only faster to implement, easy to launch, economical and secure but also have all the necessary features required in an advanced online business.link to web based business ideas category
The fact of the matter is that there is lot more to launching a startup than meet the eye. While many think that finding the right business idea will ensure success, other think that it revolves around features as well as pricing. But as stated in this post, it all boils down to finding the answers to five Ws and one bonus H (better known as W5H), as it simplifies the whole process for you and can remove any growth hindrances.