What do people want?
And when do they want it?
Now? Later? May be at any time.
It’s this people’s need of wanting things at any given time that gave birth to on-demand market in the first place.
Uber was probably the first startup to recognize this on-demand market and is now one of the successful companies in the world.
Times have changed. People don’t have patience. People don’t have time. Imagine that guests have arrived unannounced, and you don’t have anything to offer them. But still, you’ll have to, despite there is nothing to serve. So, you just pick up your smartphone and order something for them. And problem solved!
This is what on-demand market is. You deliver what people can possibly want at any given time.
Take Uber, Lyft, and Sidecar for example. They all offer almost exact services. They all are trying to one-up each other. In fact, most major companies are in the same situation. They come up with a fresh strategy every now and then, to crush their competitors. And soon enough, you’ll see yourself in the similar situation.
Now you might already have an startup idea to enter the on-demand business world. But, what you don’t know is that there are already many overly qualified intelligent entrepreneurs who probably have implemented your idea.
Would you give up?
No, don’t do that. At least not before knowing this game plan which can help to crush such competitors and reach to the top.
The Game Plan…
Understand The Customer Closely
The common strategy of any successful on-demand startup is to know today’s customers need, and then figure out how to deliver it quickly and efficiently.
The expectation of people’s needs has changed drastically, and managing these expectations positively has become quite a challenge for entrepreneurs. However, there is upside of it too. There are now many opportunities for on-demand everything. While it seem easy to get people to try your product, but your business strategy should never depend on bunch of assumptions.
The better option is, however, to validate all your assumptions through a survey type of strategy. Following are few questions that might give a new insight whether your startup idea will work or not.
- Do people want what you have to offer?
- Do people have other options other than your product?
- Does your idea provide a better, efficient solution?
- Are people willing to pay for your solution?
Once you get answers of these questions, you’ll have the idea of what approach is right for you.
Please Be Wise When You Scale Up
There are already enough number of failures people have seen in the business world. In fact, half of startups fail by their fourth year. And surely, you don’t want to be one of them.
Scaling a business, on the other hand, is a difficult task. Meeting the goals and customers’ needs, and scaling your business at the same time is even harder. There is lot to be done to scale your business like preparing a strategy, gathering resources, hire dedicated developer to upgrade the product, etc. But, what really matters is to first identify whether it’s right time for you to scale up or not.
Scaling prematurely burns cash. That’s why, you’ll have to ensure that you’re solving a problem that people care about, and people will be willing to pay for your solution in the future as well. If the customer-base is not increasing, or sales are not reaching to a new height in the charts, then it’s wise to hold your thoughts for scaling up.
Get Past Clumsy Competitors
How about entering a market where there are already bunch of competitors? Not so smart decision, is it? Well, it’s not necessarily true. A startup can still be launched while there is already competition and make it to the top, but with a lot of efforts.
If the startup business idea you’ve, already has competition in the market, then the startup idea shouldn’t just be 2x better. It should be 10x or 20x better to dominate the market. It should be significant enough to be disruptive, to crush your competitors business. That 10x idea executed with a well-prepared plan is what will get you ahead of the competition.
One Last Tip…
Market demands change overtime. And when it does, you’ll have to be open for altering your product. Come up with an even better solution than your competitors and your previous product.