We have lately been witnessing a huge upsurge in the number of startups and small businesses, but surprisingly, most of these startups shut shop well within 5 years of starting. And one common culprit among most cases is the lack of effective strategy.
An Indian entrepreneur Anand Mishra has been a big follower of coming up and sticking to a great strategy, and believes it’s the “secret” to a successful startup. So what should be an effective startup strategy be all about? Let’s find out below.
Narrowing down on a niche
As a startup, perhaps the best thing that you can do is narrow down on a niche. This would dramatically increase your chances of being successful, as you will have the right amount of resources to serve that particular niche better instead of an all-inclusive larger market that consists of many smaller niches.
If you can’t figure out the right specific niche for your startup, you can go for a wider niche at first and based on the results, choose the right micro niche and then take it from there.
Don’t spread yourself too thin
Some entrepreneurs are a bit too enthusiastic and have many great ideas. But the problem arises when they want to work on all or many of them all at the same time.
Business consultants often say that doing so is just not attainable. You need to sit down, make a checklist of your ideas, and figure out which ONE should you be going for at first.
Consider your experience, skills, financial resources and the business’ capital needs; it will take a lot of challenge out of the decision.
Be careful with the expenses
Just because you have a year’s worth of savings for covering the rent and potential operating expenses of the business, it doesn’t mean that’s enough. You may want to consider how long it may take you to breakeven, and make sure you have MORE than the required financial resources to help your business stay afloat until that point.