On demand services like AirBnB, Luxe, Uber, and other Uber like apps are among the top divisive startups in the on demand industry, but Entrepreneurs still struggle with their startup ideas to convert into a profitable company.
In fact, 9 out 10 startups fail. While many Entrepreneurs fail to even launch their startup due to fear of mistakes and creating a failure image in the industry.
Although, all startups will face failures in daily basis, but what every Entrepreneurs should know is this – Every business is similar to conducting experiments, and starting out with a hypothesis about the targeted audience for their on demand startup and product.
We’ve worked with many Entrepreneurs with Florida, Chicago and from many other countries, and helped them with their mobile app startup ideas. Here, we’ve observed and hand-picked top 3 lessons from the stories of such on demand startups for every Entrepreneur having startup idea.
Master Your Market
For any startup to generate revenue from its product, it’s essential to figure out what the target customers want.
Entrepreneurs should define the target audience, look at competing products, and determine how they can offer a product that provide more than anyone else in the market.
Imagine you’ve developed a perfect product which nobody wants. There is no demand for it. Guess what will happen? That perfect product of yours won’t sell.
Sidecar, a startup with peer-to-peer ridesharing service shut down all their delivery and on demand services. The CEO of Sidecar, Sunil Paul said that the company was unable to compete against Uber and failed to win the market.
However, the fact is, there is no such thing as knowing too much about your market. And, while launching a product, it’s important to make sure that there is enough market to sustain high growth, and the competitors won’t make it impossible for you to successful.
Pitch Your Idea to Right Investor Community, But At The Right Time
Gaining capital is not a novice cup of tea. Don’t go to investors until you have a solid business model for your product and the capacity to move forward. Go a mile further for finding investors who have knowledge about startup landscape, believe in your philosophy and product idea, and introduce you to your potential customers.
David Levy, the co-founder of Tigerbow, a startup service designed to match a virtue address with proxy physical addresses explained that while it’s tempting to accept funding offers, but you shouldn’t raise capital from people who aren’t familiar with your startup.
You can raise funding too much, too little, and too quickly for your on demand services startup idea, but you’ll also have to be incredibly savvy about which investors to approach and whose offers you should accept.
Hire People Who Have Skills to Contribute in Your Startup Success
While the subject of why startups fail is of heated controversies and debates, but Startups who want to scale quickly shouldn’t hire employees immediately. Hiring expensive candidates who aren’t right fit for your startup. Moreover, hiring subpar talent may create a risk of sinking your venture and it could stunt your startup’s potential.
However, in order to avoid this, take your time to fully vet the candidates. You could also consider hiring freelancers for developing your product app or consult with top mobile app development company to make sure you’ve hired the right people for your startup.
For any startup, it’s critical to find and hire the right people suiting your business requirements, share work ethic, and able to come up with backup plan on their own, if your plan A fails.
Entrepreneurship is all about working smarter than harder and finding new ways to get things done. And, while these lessons have been great importance for entrepreneurs to understand fundamental concept of sustaining a successful startup.