Why data plays an important role in startup success?

According to data, 20 per cent of startups fail in their first year, and only 50 per cent survive through their fifth year.

·        Data Work as a sixth sense for prospecting sales

·        Evaluate where your company stands compared to competitors

·        Data helps you make better decisions

·        Data helps you to  understand markets and customers

Startup businesses are a risky proposition. In order to stay competitive in the dynamic business world, Sustained growth is the only way to ensure the survival of your startup. This means that if things aren’t done in the most effective way possible, businesses will never make it past the first year.

One of the common mistakes owners make, while crafting a business plan, is skip over big data. But the use of big data can be very influential to the success of the company, as it offers a lot of opportunities and challenges to the businesses and can be very influential to the success of the company.

Big data can give numbers backed by bits of knowledge on consumer behaviour and can play a critical role in helping new businesses in regions like marketing, advertising, operations, inventory management, customer service, etc.

Big data and its influence on startups

Big data can help new businesses in recognizing and reaching out to the correct target market for launching product(s) and giving better profit for marketing investments. Additionally, it can also help in understanding the client's needs and utilizing their requirements for structuring or updating offerings.

Why data is important for startups..?

1- Base for target marketing

Due to a limited budget for marketing, startups need to have an unconventional wisdom of marketing to achieve a high consumer conversion rate. Advertising and marketing without data-based insight are similar to attempting to hit an objective in an unfamiliar dark room with only 2 to 3 bullets in your gun.

While Big Data science is evolving and is not fully precise, but it provides you with the direction in which to shoot so that your probability of hitting the target is maximum. So with the staggering help of big data, one can without much of a stretch adjust to the market conditions and accomplish a higher return on investment with increased sales.

2-Help in Tracking Potential Customers

Developing a customer base is essential for any kind of business success. In order to achieve success in the business world, it is essential to completely understand the market and customers. Being able to predict, fulfil and surpass the customer’s expectations, this is exactly the thing that helps startups succeed and scale.

Big data analytics is one of the strongest tools available to help manage a growing market share. Definite data and bits of knowledge help create personalized consumer engagement strategies. Such methods can be helpful in finding the areas for growth and product improvement, indicate trends and buying habits of the customers or detect the currently underserved market niches.

3-Data help to know your competitors

Your competitors offer their products and services and highlight their features, their customers leave feedback and highlight the flaws, there are discussions and suggestions on various forums and online networking with respect to the direction such products and services should evolve.

Analyzing this goldmine of data will help you identify the room for improvement, underserved niches and various trends, avoid the mistakes of your competitors and provide exactly the features and services with the target audience wants.

4-Increase Productivity

Most startups carry out their businesses with a limited budget and are very eager to earn maximum value out of it. Data allow users to run the ‘Experiment-Fail-Learn-Repeat’ cycle pretty economically

It does not just help new businesses in reducing their marketing or advertising expenses, yet in addition, gives an additional enterprise-grade experiences like anywhere accessibility and unlimited adaptability supported by the highly reliable infrastructure.

This makes organizations more agile and enables them to understand and react to the changing market requirements more dynamically.

Summary

In the quest for growth, it is important to know the possibilities and go after very small tangible benefits. Startups can execute different big data solutions over various areas.  It can be beneficial when challenges are clearly defined and applied to different tasks.

A full set of data also provides integration of the startup into the purchasing company and it can help sway the interests of the potential buyers because it provides the necessary data around the business’s success.

So Looking at the numbers can help greatly mitigate against business risks, and ensure it will provide some ROI and not bring down the company.

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

Address: Unit No.450, Mastermind One - IT Park, Royal Palms, Aarey Colony, Goregaon(E), Mumbai, Maharashtra 400065

Phone: 08355979232, 09867806399

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Well-crafted business plan! A key to success for startups!!

"A good plan is a success half-done whereas a bad plan is a possible failure in progress."

• Companies with business plans experiences  higher growth rates
• A formal business plan increases your chances of success by 16%.
• Business plan provides you a better chance of raising capital for your startup company

Does a business strategy make startup success assured? Not at all. But great planning often makes the difference between success and failure. Anyone can have a great idea. But turning an idea into a viable business is a different ballgame.

For a startup company the business plan is the blueprint for its formation, its operation, and its success. A business plan reveals the company's strengths and weaknesses. It uncovers ways to capitalize on the strengths and minimize the weaknesses, reveals every fact of the business that can be developed, and points to the best method for that development.

Why it is important

Many business plans are fantasies. That's because many aspiring entrepreneurs see a business plan as simply a tool--filled with strategies and projections and hyperbole--that will convince lenders or investors the business makes sense.

That's a huge mistake.

First and foremost, your business plan should convince you that your idea makes sense, because your time, your money, and your effort are on the line.

So a solid business plan should flesh out strategic plans, develop marketing and sales plans, create the foundation for smooth operations, &convince a lender or investor to jump on board.

With the well-prepared business plan you will enter the business world prepared, ready to run your business and ready to compete. It will improve your chances of success, and diminish your risks of failure.

 According to Harvard Business Review “the real key to succeeding in business is being flexible and responsive to opportunities.

A typical business plan must consist of the following elements:

Executive summary:- A snapshot of the company's purpose and goals. It includes a description of products and services.

Company description:- Description of what you do, what makes your business unique.

Market analysis:- Research on your industry, purchasing habits, buying cycles, market and competitors.

Competitive Advantage:- It describes a detailed analysis of both your current competition and potential competitors.

Organization and management:- Your business and management structure, it describes skills, experiences, of management team.

Product & services:- The products or services you’re offering.

Marketing and sales- How you’ll market your business and your sales strategy like advertising, public relations, promotional literature, etc.

Funding request:- It is a projection about how much the money you’ll need for the next 3 to 5 years.

Financial Analysis:- Financial projections and estimates. It includes supply information like balance sheets, cash flow statements, etc.

Appendix:- it includes résumés and permits.

Whom it can convince?

Firstly, your business plan should convince you that the idea you have for a business is not just a dream but it can be a viable reality.

1. Potential sources of financing 

If you need seed money for startup and operating capital to get off the ground from a bank or friends and relatives, your business plan can help you make a great case.  Lending naturally involves risk and a great business plan can assist lenders to understand the quantity of risk, eventually increasing your chances for approval.

2.  To attract potential partners and investors.

In case of other investors--including angel investors or venture capitalists--generally require a business plan in order to evaluate your business& convince them for investment.

3. Skilled employees. 

When you need to attract talent, you need something to show prospective employees since you're still in the startup phase, so your business plan can help prospective employees understand your goals--and, more important, their place in helping you achieve those goals.

4. Potential joint ventures. 

As a new company, you will likely be an unknown quantity in your market. A joint venture with an established company could have a significant effect in getting your business off the ground.

Summary

Launching a startup company is exciting. It’s easy to get so caught up in the moment that you rush into things. If you want to achieve success, you need to take a step back and plan things out.

Going through the process of writing a formal business plan will increase your chances of securing an investment and also improve your potential growth rate.An accurate,well-organized,&easy-to-read, business plan conveys professionalism and credibility.

Never forget that the goal of your business plan is to convince you that your idea makes sense. Because ultimately, it's your time, your money, and your effort on the line.

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

Phone: 08355979232, 09867806399

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Whatsapp Me:- 8355979232

Why do you need right advisor for successful in business?

• What is a business advisor?
• How to choose the right advisor
• Benefits of having a right Advisor
• How Can I Make The Most of My Advisors?

As a small business owner, sole trader or contractor, you no doubt have expertise in one or possibly more jobs.  However, being an organizational leader across multiple channels is something quite different. But just like Behind every successful athlete is a great coach, and success in business is no different.

No matter how experienced you and your employees are, you cannot expect to have all the skills and knowledge your business needs, particularly as requirements change as your business grows.

Sometimes you want to put a good business plan in place to meet your targets, but don’t know where to start or you’re looking for new strategies to grow the business.  At that time you need the right advisor to help you out.

If you examine the top business around the world and you’ll find they have one thing in common: their success is a collaborative effort that relies on getting the best advice and guidance in key areas of their operation. There is no disgrace in seeking out help to take you and your business to the next level.

What is a business advisor?

A business advisor is anyone who can help you solve business problems or bridge a gap in your knowledge and skills.

There are many different types of advisors in all areas of business. Some advisors are generalists with a wide range of knowledge and expertise. Others are specialists in a specific area, e.g. marketing gurus or leadership coaches.

Choosing the right advisor

The best business advisors are not cheerleaders on the sideline, nor drill sergeants who bark orders, they challenge you, take a hands-on approach and proactively work to build your skills.

You should look for a business advisor who suits your particular working style and has the gusto and experience to make a real difference.

It’s essential to check that the advisor suits your particular circumstances. Ideally, you want an advisor who:

1-      Understands your industry

2-      Has worked with businesses your size

3-      Has experience of any particular issues you want to deal with

  

Benefits of having a right Advisor:

Get the right guidance

You need guidance to get from where you are to where you want to be, and again once you get there. This is where the value of an advisor lies. A good business coach will not only challenge you, they’ll also act as a role model because of the experience they bring to the table. Approaching your business from the outside, rather than inside, they can offer unique insights. With the right guidance by your side, you’ll have the tools and support you need to navigate your way to success.

Uncover your strengths

A great sports coach understands how to channel potential in the right way so effectiveness soars, and a great business advisor is the same. Through evaluating and understanding your business, they can help you discover your strengths and the areas you need to work on. Recognizing these is one thing, but getting results also requires hard work. Your coach will push you past your comfort zone and keep you constantly moving forward.

Accountability

One of the most important tasks of a business coach is holding you accountable for your actions. In business, you make decisions based on your situation and the things you can control. If you make a bad decision, you’re to blame. A good coach will ensure you follow a considered process rather than just one part and take accountability when things go wrong, so you can learn from mistakes and move on.

Summary

The bottom line is, you cannot and should not, go it alone. To hit your stride and become a success, you need the right advisor by your side. A business advisor can help you develop the skills and resources you need to be a success. By benefitting from their experience and expertise, you’ll learn more about yourself and your business, while gaining that much-desired competitive edge.

Getting a business advisor to help in grey areas will save you time, resources and energy in the long run. Your business is also much more likely to grow and succeed.

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

Phone: 08355979232, 09867806399

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Whatsapp Me:- 8355979232

How Small Business Can Transform Into Successful Brand With Franchise Model?

“Your business needs to have a great brand reputation and differentiation of some kind in your market."

      Many small business owners dream of seeing their business grow and scale over time – not just for their own fulfilment, but in the hopes of eventually selling that business and turning in a worthwhile profit. To make that happen, you'll often need a lot of capital investment to spur growth for your business – unless you choose to turn it into a franchise.

Franchising your small business essentially means you can expand your business using "other people's money and franchise model can propel small companies to great success, everyone is conscious of the Subway and McDonald's wealth and success.

      It can be a rewarding experience to franchise your company when performed correctly. With company-owned locations, franchising can provide small businesses with a path to growth and profitability that is not normally achieved.Franchising has, in many instances, allowed small companies to develop into nationally and globally acknowledged brands that permeate the food services industry to hotels.

      Franchising doesn’t happen overnight; it requires an investment of time and capital to get it right from the outset.

Criteria for franchising a business

At a basic level, to be franchised your business needs to be:

Proven – not an idea, but proven proof of success

Profitable – at a sufficient level for both franchisor and franchisee

Teachable – there's no point in franchising a business that only three people can operate

Transferrable – it should be suitable for different geographies

     In your industry, you will also need an excellent brand and some sort of differentiation. And it's essential to have a long-term appeal for your business instead of being a temporary fad.

Consider your business concept and model.

      Your first port of call is to consider your business concept/model and whether it's viable to turn into a franchise. You may be offering the same old service as anyone else, but do you have a unique twist on it? If not, what would compel a franchisee to buy your franchise over starting their own business with the same services?

      Examine whether you have a unique selling point (USP), an established brand name, or demonstrated success with organized plans or refined techniques. These are all elements that will encourage a franchisee to franchise your business over starting from scratch. You want your concept to appeal to both consumers and franchisees, and not be dependent on your own personalization to thrive. In other words, your concept needs to be replicated by everyone.

Prepare your small business for a change.

      You must understand that your role in your business may change when you become a franchisor. Scratch that – it will change. You will no longer be responsible solely for running your business, but also for supporting franchisees and selling franchises. You'll have to give up some of the control you previously had with your business and delegate your tasks to someone else.

      Ask yourself whether you're happy to relinquish some of that control and take a step back from your business operations for a while. If you're so intertwined with your business concept that you can't bear the thought of someone else taking over, then perhaps franchising isn't right for you.

Pick your business franchisees wisely.

      A big mistake many franchisors make is that they want to see their business grow as fast as possible, so they sell franchises to just about anyone. For your franchise to succeed, it's vital that you choose the right franchisees. Often, you'll find that the perfect franchisees are already working for your business.

When choosing a franchisee for your business, capital isn't always as important as finding the right person who believes in your business model. You'll be engaging with your franchisees for the entirety of your working relationship, and it's vital that you choose self-motivated people who are:

• ·         Passionate about the industry.
• ·         Open to criticism and advice.
• ·         Loyal to your brand concept.
• ·         Motivated toward business expansion, thriving on business challenges.
• ·         Willing to adapt to develop the company in their lifestyle.

      As your small business grows, keep an eye out for staff members who have goals and values that align with your business model and have shown loyalty in the past. These will be the best franchisees when it's time to take your business to the next level.

Summary

     For small business owners, franchising is a way to expand more quickly and cost-effectively than opening further company outlets, by granting people (franchisees) the right to run their own business under your brand and systems.Franchising can help you to expand your business and propel it to a whole new level, Franchising your company can be an excellent way to grow your business.

Address: Unit No.450, Mastermind One - IT Park, Royal Palms, Aarey Colony, Goregaon(E), Mumbai, Maharashtra 400065

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

Phone: 08355979232, 09867806399

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Whatsapp Me:- 8355979232

Why every franchise model is not successful in every area or market...?

There is an old saying, "location is everything." in the case of the franchise business, nothing is couldn't be more accurate than this.

·        Population, demographics & competition, plays a vital role in the success of a franchise.

·        If you aren't visible or convenient, there's a good chance your franchise business will suffer.

      Opening a franchise may appear to be a basic way to run your own business. Franchising allows business people to run an organization without starting from scratch. But just because a business already has a widely recognized brand and established operating procedures doesn't mean it’s easy to run one.

      Maybe you already have an area in mind where you'd like to open a franchise of specific brand, but what guarantees that the franchise can run successfully there?

The right business model with the right location for your franchise will be the difference between success and failure of a franchise Because Businesses need to establish locations that generate the most customer traffic.

      There is no guarantee that every franchise model is going to succeed in every area or market where you open a franchise. There are several factors which affect the franchise business in specific locations, they are as follows

External factors

Demographics

      There are many things to consider when choosing a location for a business. One of the first factors in choosing a business that appeals to the local demographics. If the people in an area have no need for a specific kind of business, then there will be no traffic for your business. 

      Knowing the social structure and statistics relating to the population and the various ethnical groups within a population can help you to identify the right customer base for business, or provide you with a clear picture of a customer base that won't be of any value to your business.

Local laws and standard business practices of an area

      Towns and cities have their own laws regarding how businesses can operate. Sometimes there are contractual obligations that could require the franchisee to pay a range of fees, such as property maintenance, local taxes, permits, and insurance.

     There might be excessive taxes that can affect the bottom line of your franchise. Some municipalities may even restrict certain types of businesses. It's important to understand the legalities, permits, and expected business practices of any municipality before you decide to open a franchise in the area.

Characteristic of business and target customers

      Different franchises will thrive better in certain locations. Depending upon the type of the franchise you have, having major roads and highways near your franchise can be a big determining factor in the success of your franchise, particularly those franchise businesses that rely on a steady inflow of customers.

      Another factor playing a major role in franchise success is visibility. Restaurants and other franchises that rely on traffic will do well near business districts where rent might be more expensive. High visibility is essential to the success of these types of franchises. If you aren't visible or convenient, there's a good chance your franchise business will suffer.

       Franchises that don't rely on walk-in business can get away with paying less rent in less populated areas. Examples of these include cleaning franchises or any other service franchise that travels to the customer.

Administrative factors

The franchisee doesn’t have the right stuff to appropriately work the franchise.

      In a number of situations where an individual purchased a franchise that required certain skills, the franchisee didn’t have, despite due diligence on the part of both parties.

For example, as per the business model, if a franchise requires strong selling skills and the franchisee is not a salesperson, then it can be difficult for a franchisee to successfully operate the franchise due to the absence of required business skills. Although the solution might be for the franchisee to hire a salesperson, it’s easy to say than done.

Wrong fit for business

      There is a major contrast between loving the products or services, and loving the challenge of maintaining a business that sells those products or services. Because sometimes franchisees, no matter how passionate they are about the product, the brand or the industry, just are not suited to the business.

Most of the time's franchisees failed to evolve with the business over time, incapable of managing or retaining staff, or a whole bunch of other reasons, simply being they are the wrong fit for the business.

Summary

      At times, just having a brand name and a defined working method are not enough to make the franchise successful. Most of the time, geographical location, competition, people's preferences, and the ability to spend in a specific area, play a crucial role in determining how the franchise will operate. So if you are thinking about taking a franchise of a renowned brand, then it is important to take all that into consideration before making any decision.

Address: Unit No.450, Mastermind One - IT Park, Royal Palms, Aarey Colony, Goregaon(E), Mumbai, Maharashtra 400065

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

Phone: 08355979232, 09867806399

Follow us on Facebook  (Click Here)

Whatsapp Me:- 8355979232