Startups Are For Risk-takers, Here’s What You Should Know
Startup companies are known for their innovative ideas and willingness to create new things. But how can a company create things that people are willing to buy or pay for ? Innovation is necessary in this new age economy, but it also brings its fair share of ambiguity and uncertainty.
The unpredictability of startups are what bring change to a stagnant market. They depend heavily on the interaction between ideas,market, people and capital. The risk these new businesses take are higher than a regular “lifestyle” businesses. Their ambitious ideas require exponential growth in its early years, and in many cases is a hit or miss.
The unknown can only be learned by doing, therefore startups grow more with hands on tactics rather than backseat planning. When venturing into startups having a business plan is virtually useless. With all the uncertainty that tags along you need to be ready for change at a given moment. Investors want to know numbers, where you are expected to be in a few years and what your goals are.
Don’t mistake risk with probability when it comes to new business. You cannot calculate the exact success of a business with historical data. Creating flexibility in you product or services minimizes probabilities of failure by optimizing optionality. While you keep learning in your industry your product will grow parallel to it. There are no steps to take and rules to follow when it comes to creating your own startup, it is a learn as you go process. Although there are basic tips and tricks to follow don’t be afraid to go into the unknown. Learn as much as you can and make improvement. You might not have all the answer, but you have all the possibilities.