Road To entrpreneurship -Problem Identification

Hello friends this is going to be a whole series on how to become an entrepreneur and start your startup .  In this series we will cover all the aspect require in starting your startup.
Before we start , since this is going to be a long series  make sure to Bookmark the Blog so that you may not miss any topic .In this series we have covered

• Problem Identification
• Idea Generation and Validation
• Business Models
• Revenue Models
• MVP
• Funding For Startups

Now the very first question arises What is entrepreneurship ? and who is an entrepreneur.

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures. An entrepreneur is self-motivated and the best way to get motivated is getting a problem that needs to be solved and then solving that problem with your startup that will help others.

Problem Identification

Problem identification and finding its solution are one of the most important aspects of entrepreneurship. As both the founder of your organization and the leader of your team, you'll be responsible for identifying and solving the problems of your customers, partners, employees and your company, in general. Some people think  of entrepreneurial types as creative inventors; if given a blank canvas, they can come up with a product that people will love. But that's not usually the case. Instead, the  most successful entrepreneurs are those who first identify a key problem in the market, then work to solve that problem. Truly identifying a problem means looking   deeper at the symptoms, the customer, the impact, the alternatives, the opportunity,and the relationships between them, while avoiding the “solution bias".

Now when you have found your problem it will help you in further steps in which you should define the riskiest assumptions regarding the problem that you are trying to solve. First of all, brainstorm all the possible assumptions that you might have regarding the problem. Some categories of assumptions are

• Cause of the problem
• Consequences or problem effect
• why this problem is not solved yet

The problem assumptions that are placed in the right upper quadrant of the assumption prioritization chart are your riskiest assumptions and those are the ones that should be tested first through well-defined experiments.
Now our next topic is Idea Generation And Validation.
Do comment below to let us know your view on problem identifiaction.

Road To Entrepreneurship- Idea Generation and Validation

Idea Generation And Validation

Now once you have identified the problem the next step is to find a solution to that  problem which has the ability to attract paying customers. There are various idea generation techniques through which you can find the solution to your problem.

Scamper :

  It is an   idea generation technique that utilizes action verbs as stimuli and  checklist that assists the person in coming up with ideas either for modifications  that can be made on an existing product or for making a new product. SCAMPER is  acronym of action verbs (Substitute, Combine, Adapt, Modify, Put to another use,  Eliminate and Reverse) which stands for a prompt for creative ideas. The substitute  technique focuses on the parts in the product, service or solution that can be replaced with another. The combine technique tends to analyze the possibility of    merging two ideas, stages of the process or product in one single more efficient output. Adapt refers to a brainstorming discussion that aims to adjust or tweak product or service for a better output. The modify technique refers to changing the hanging the process in a way that unleashes more innovation capabilities  or solves problems. Put to another use technique concerns how to put the current product or process in another purpose or how to use the existing product to solve problems. As the name implies, Eliminate technique aims to identify the parts of the process that can be eliminated to improve the process, product or service. The Reverse or Rearrange technique aims to explore the innovative potential when changing the order of the process in the production line.

Brainstorming:

It is a process engendering a huge number of solutions for a specific problem. In this, there is no assessment of ideas. It allows all type of ideas and then a solution is finalized.   

Mindmapping:

 Mind Mapping is a graphical technique for imagining connections between various pieces of information or ideas. Each fact or idea is written down and then connected by curves or lines to its minor or major (previous or following) fact or idea, thus building a web of relationships. 

Synectics:

It is a creative idea generation and problem-solving technique that arouses thought processes that the subject may not be aware of. It is a manner of approaching problem-solving and creativity in a rational manner. According to J.J Gordon, three key assumptions are associated with Synectics research are: 

• It is easy to describe and teach the creative process.
• invention process in science and arts are analogous and triggered by same physic process
• group and individual creativity are analogous 

Idea Validation 

Validation of ideas is a must for budding entrepreneurs, to plan and execute their ideas with their arsenal ready to combat setbacks! Let us dive deep into this “idea validation”. In order to validate our idea first, we have to socialize the idea with a wide variety of people from both social and professional networks. Another aspect of idea validation is understanding how you can take it to VCs and individual investors. One other approach to idea validation is a more structured and formal one – testing the same. Determining feasibility may be through market research, focus groups, and/or a pilot launch. Focus the most on the problem and how you can solve it in different  ways, then think about how and what you offer to the customers. Plan ahead. Visualize the ways in which your business can fail, be clear about your plans to overcome the hurdles, and have the wherewithal, both mental and financial, to see through the challenges. You can also make use of various market validation platforms also if required.

Now our next topic is Business Models.

If you have any doubt then do comment , we will be more than happy to help you.

Road To Entrepreneurship - Business Models

Business Models

Business Models

At its core, a business model is a description of how a business makes money. A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy. The two primary levers of a company's business model are pricing and costs. One can raise prices and reduce inventory costs to increase the gross profit of a company. A Business model consists of a lot of components. One of its primary component is the value proposition. It describes the goods or services that a company offers and why they are desirable to customers or clients ideally, it can be stated in a way that differentiates the product or service from its competitors. A business model for a new enterprise should also cover projected startup costs and sources of financing, the target customer base for the business, marketing strategy, a review of the competition, and projections of revenues and expenses. There are as many types of business models as there are types of business. Direct sales, franchising, advertising-based, and brick-and-mortar stores are all examples of traditional business models. There are hybrids as well, such as businesses that combine internet retail with brick-and-mortar stores. Within these broad categories, each business plan is unique. Consider the shaving industry. Gillette is happy to sell its Mach3 razor handle at cost or lower in order to get steady customers for its more profitable razor blades. The business model rests on giving away the handle to get those blade sales. This type of business model is actually called the razor-razorblade model, but it can apply to companies in any business that sells a product at a deep discount in order to supply a dependent good at a considerably higher price.

Different Types Of Business Models

There are different types of business models meant for different businesses. Some of the basic types of business models are:

Manufacturer: A manufacturer makes finished products from raw materials. It may sell directly to the customers or sell it to a middleman i.e another business that sells it finally to the customer. Examples – Ford, 3M, General Electric.

Distributor:

A distributor buys products from manufacturers and resells them to the retailers or the public. Examples – Auto Dealerships..

Retailer :

A retailer sells directly to the public after purchasing the products from a distributor/wholesaler. Examples – Amazon, Tesco.

Franchise :

A franchise can be a manufacturer, distributor or retailer. Instead of creating a new product, the franchisee uses the parent business’s model and brand while paying royalties to it. Examples – McDonald’s, Pizza Hut.

Brick-and-mortar :

Brick-and-mortar is a traditional business model where the retailers, wholesalers, and manufacturers deal with the customers face-to-face in an office, a shop, or a store that the business owns or rents. 

eCommerce:

 E-Commerce business model is an up-gradation of the traditional brick-and-mortar business model. It focuses on selling products by creating a web-store on the internet.

 Bricks-and-clicks:

 A company that has both an online and offline presence allows customers to pick up products from the physical stores while they can place the order online. This model gives flexibility to the business since it is present online for customers who live in areas where they do not have brick-and-mortar stores. Examples – Almost all apparel companies nowadays.

Freemium :

This is one of the most common business models on the Internet. Companies offer basic services to the customers for free while charging a certain premium for extra add-ons. So there will be multiple plans with various benefits for different customers. Generally, the basic service comes with certain restrictions or limitations, such as in-app advertisements, storage restrictions etc., which the premium plans shall not have. For example, the basic version of Dropbox comes with 2 GB storage. If you want to increase that limit, you can move to the Pro plan and pay a premium of $9.99 a month for it. Some online image editors allow you to edit only a certain number of images in the free basic plan while an unlimited number of images in the paid plan. Youtube’s free plan comes with ads while the premium (Red) plan has no ad interruption plus it has other benefits too. This model is one of the most adopted models for online companies because it is not only a great marketing tool but also a cost-effective way to scale up and attract new users.

 Online Marketplace:

 Online marketplaces aggregate different sellers into one platform who then compete with each other to provide the same product/service at competitive prices. The marketplace builds its brand over different factors like trust, free and/or on-time home delivery, quality sellers, etc. and earns commission on every sale carried on its platform. Examples – Amazon, Alibaba. 

Advertisement :

Advertisement business models are evolving even more with the rise of the demand for free products and services on the internet. Just like the earlier times, these business models are popular with media publishers like Youtube, Forbes, etc. where the information is provided for free but are accompanied with advertisements which are paid for by identified sponsors.

Crowdsourcing :

Crowdsourcing business model involves the users to contribute to the value provided. This business model is often combined with other business and revenue models to create an ultimate solution for the user and to earn money. Examples of businesses using the crowdsourcing business model are Wikipedia, reCAPTCHA, Duolingo, etc. 

Hope you now know different types of Business Models. Now if you think you need any help do comment below .Our next topic is Revenue Model.

Road To Entrepreneurship-Revenue Model

Road To Entrepreneurship-Revenue Model

Revenue Model is the building block representing the cash (not profit, which is revenue minus costs) a company generates from each customer segment. Revenues are the lifeblood of a company. Revenue stream may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management. Revenue Streams can be generated in many ways:

• a. Asset sale 
• b. Usage fee 
• c. Subscription fees 
• d. Lending/Renting/Leasing 
• e. Licensing 
• f. Brokerage Fees 
• g. Advertising 
• h. Pricing mechanisms: Fixed or Dynamic 

Let's take the example of Ola: How does ola make money: 

• a. Trip Commission 
• b. In-cab promotions and advertisement commissions
• c. Cab leasing program for its driver-partners 
• d. Ola Money and Ola credit cards 
• e. Corporate accounts: Ola performs several business meetings with the heads of various organizations where they promote Ola and convince corporate managers and employees to use Ola cabs for their business travels. Reduced rates are charged from these corporates as demand increases. With these B 2 B tie-ups, Ola earns a higher sales volume. 
• f. Delivery service - Food Panda 
• g. Ola Prime Play.

 Now we have understood different type of Business Models and Revenue Models , Now we would learn a new topic MVP in next topic .

Do share this articles on Facebook To your friends so that more and more people can get benefitted.

Road to Entrepreneurship - MVP

Road to Entrepreneurship - MVP

A minimum viable product (MVP) is a product with just enough features to satisfy early customers and provide feedback for future product development. The development of MVP allows your team to validate (or invalidate) product assumptions and learn how your target users react and experience your product’s core functionality. This approach will provide insight into properly allocating your budget to satisfy your overall business objectives. Building an MVP is an iterative process designed to identify user pain points and determine the appropriate product functionality to address those needs over time. You must have heard of thriving companies like Uber, Dropbox, and Zappos. They all started as MVPs and then gained power and influence. These examples prove the advantage of developing an MVP.

An MVP is a smart way to:

● Release your product to market in the shortest time. 

● Reduce implementation costs. 

● Test the demand for your product – before releasing a full-fledged product. 

● Avoid failures and large capital losses. 

● Gain valuable insight into what works and what doesn’t work. 

● Work directly with your clients and analyze their behaviours and preferences. 

● Gather and enhance your user base. 

In essence , MVP development should like that

MVP Development

1. Virgin Airlines: Virgin Airlines is one of the largest British airlines operating internationally that was established and is owned, by Richard Branson. What was the minimum viable product for Virgin Airlines? It was just one route and one plane flying between Gatwick and Newark.

2. Yahoo!: What was the MVP product for Yahoo? Yahoo was represented as an MVP website, a single-page website that contained a list of links to other sites. This was a sufficient amount of functionality to satisfy the users and retain early adopters of the system. Today, the system is the second most popular search engine in the world. 

3. Airbnb Airbnb: was started as a concierge MVP. Back in 2017, there was a great design conference in San Francisco. The Airbnb team decided to offer their cheap accommodations during this event and posted the information on a simple website. Within a short period of time, 3 guests were interested in paying for this minimum viable service. This supported the market insight that potential customers would be willing to pay to stay at someone else’s home rather than in a hotel.

 4. Foursquare: Foursquare is another good minimum viable product example. In 2009, when it was launched, it was a simple app allowing people to check-in at a certain  place. No special design, no special functionality, just a single-feature minimum viable product. Today, it has 55 million monthly active users and 7 billion check-ins total.

5. Facebook :In late 2004, Facebook was the definition of MVP on social media. Users had a simple profile and a great opportunity to connect with their group mates. This one feature was enough to provide an awesome boost and turn a small project into one of the largest public tech companies in history 

Steps to Build an MVP:

Now we all know the importance of Minimum Viable Product. Here are a few steps to make an efficient MVP:

1. Market Research: Some times it happens that ideas do not fulfil the market needs. So in order to ensure that conduct surveys and keep an eye on your competitors and their offerings. 

2. Express your Idea: What value does your product offer to its users? How can it benefit them? Why would they buy your product? These are important questions to keep in mind to help better express your idea. 

3. Consider the design process and user flow: While defining user flow focus directly on its primary goal. As Zappos is an online shop that sells shoes, its main goal is to allow users to buy shoes online. For this, you need to define process stages and for defining process stages you must focus on basic tasks. 

4. List the project features: Ask questions like what do my users want? etc. and prioritize features of your product. 

5. Build your MVP: After deciding the main features, create your MVP and keep in mind that the MVP must fulfill your customer needs. 

6. Build, measure and learn: After completion of the product test it with quality assurance engineers. And after launching the product collect feedback from the users and start improving your product.

Now we have learned what an MVP is and how to built in our startup . Now we would head over on How to get Funding For Our Business.

please do comment and share this article with your friends so that they can also avail this .

Road To Entrepreneurship -Funding for STARTUP

Road To Entrepreneurship -Funding for STARTUP

Funding rounds provide outside investors with the opportunity to invest cash in a growing company in exchange for equity, or partial ownership of that company. if the company grows and earns a profit, the investor will be rewarded commensurate with the investment made. Before any round of funding begins, analysts undertake a valuation of the company in question. Valuations are derived from many different factors, including management, proven track record, market size, and risk. 

Startups first engage in what is known as "seed" funding or angel investor funding. Next, these funding rounds can be followed by Series A, B, and C funding rounds.

Some basic terms:

Equity: Equity essentially means ownership. Equity represents one's percentage of ownership interest in a given company. For startup investors, this means the percentage of the company's shares that a startup is willing to sell to investors for a specific amount of money. 

Lean Startup: The lean startup methodology calls for entrepreneurs to start their business ventures by searching for a business model and then testing their ideas. Feedback from potential customers is then used to adjust their ideas as they move forward. Instead of business plans, lean startups use a business model based on hypotheses that are tested rapidly. Data does not need to be completed before proceeding; it just needs to be sufficient. When customers do not react as desired, the startup quickly adjusts to limit its losses and return to developing products consumers want. Failure is the rule, not the exception.

Bootstrap: Self-funding, also known as bootstrapping, is an effective way of startup financing, especially when you are just starting your business.

Incubator: A business incubator is a company that helps solve some common problems associated with running a startup by providing workspace, seed funding, mentoring, and training 

Accelerator: Accelerators are focused on early-stage startups and scaling a business while incubators are often more focused on innovation and take up early to late-stage startups. Accelerator programs usually have a set timeframe in which individual companies spend anywhere from a few weeks to a few months working with a group of mentors to build out their business and avoid problems along the way.

Funding Series: 

• Series A Funding: Once a startup makes it through the seed stage and they have some kind of traction — whether it’s number of users, revenue, views, or whatever other key performance indicators (KPI) they’ve set themselves — and they’re ready to raise a Series A round to help lift them to the next level. 
• Series B Funding: A startup that reaches the point where they’re ready to raise a Series B round has already found their product/market fit and needs help expanding. 
• Series C Funding: Companies that make it to the Series C stage of funding are doing very well and are ready to expand to new markets, acquire other businesses, or develop new products. Commonly, Series C companies are looking to take their product out of their home country and reach an international market.

Now we have covered all the topics . hope you have liked our series on Road to Entrepreneurship.

Do comment below to let us know how you love it. share it with your friends on Facebook .

8 Best Business Book That Every Entrepreneur Should Read

8 Best Business Books that Every Entrepreneur Should read

The very first step towards starting your own business is learning and gaining knowledge . So if you are one of them , who is ready to become an entrepreneur then you must read these 8 books .

1.ReWork: Change the Way You Work Forever

Rework is a unique business book which shows the reader a better, faster, easier way to be successful in business. The book tells the reader why plans are truly harmful, why people don't need outside investors and why a person is better ignoring the competition.
The book tells the reader what you really need to be successful which is to stop talking and start working. This book shows the reader the right way. It teaches the reader how to be more creative, how to get exposure without wasting money and tons of other senseless thoughts that will motivate and provoke the reader.
Buy this book from amazon.

2.Inbound Marketing  

This fully updated and revised edition of Inbound Marketing builds on the enormous international success of the book that launched the inbound marketing movement. It provides the new playbook you need to get more free traffic from Google, build a business blog, create a social media following and analyze which of your marketing efforts are working.
With coverage of updated Search Engine Optimization tactics and the latest tools to build a social media following, marketing experts and HubSpot founders Brian Halligan and Dharmesh Shah provide detailed advice on how to get found online and convert visitors to leads and customers.

Buy this book from amazon.

3.Outliers by Malcom Gladwell

 In this stunning bestseller, Malcolm Gladwell takes us on an intellectual journey through the world of "outliers"--the best and the brightest, the most famous and the most successful.
His answer is that we pay too much attention to what successful people are like, and too little attention to where they are from: that is, their culture, their family, their generation, and the idiosyncratic experiences of their upbringing.

Along the way he reveals the secrets of software billionaires like Bill Gates, why you've never heard of the smartest man in the world, why almost no star hockey players are born in the fall, why Asians are good at math, what made the Beatles the greatest rock band and, why, when it comes to plane crashes, where the pilots are from matters as much as how well they are trained.
The lives of outliers follow a peculiar and unexpected logic, and in uncovering that logic, Gladwell presents a fascinating blueprint for making the most of human potential--one that transforms the way we understand success.

Buy this book from amazon.

4.The Dip: The extraordinary benefits of knowing when to quit (and when to stick)

This iconic bestseller from the bestselling author of All Marketers Are Liars proves that winners are just the best quitters and 'should be on every entrepreneur's book list' (Entrepreneur.com)
Every new project (or career or relationship) starts out exciting and fun. Then it gets harder and less fun, until it hits a low point - really hard, really not fun. At this point you might be in a Dip, which will get better if you keep pushing, or a Cul-de-Sac, which will never get better no matter how hard you try. The hard part is knowing the difference and acting on it.
According to marketing guru and best-selling author Seth Godin, what sets successful entrepreneurs (and pop stars and weight lifters and car salesmen) apart from everyone else is their ability to give up on Cul-de-Sacs while staying motivated in Dips. Winners quit fast, quit often and quit without guilt - until they commit to beating the right Dip for the right reasons. You'll never be number one at anything without picking your shots very carefully. The Dip is a short, entertaining book that helps you do just that. It will forever alter the way you think about success.
Buy The Dip from amazon.

5.Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

April 2017 marks 20 years since Robert Kiyosakis Rich Dad Poor Dad first made waves in the Personal Finance arena It has since become the 1 Personal Finance book of all time translated into dozens of languages and sold around the world Rich Dad Poor Dad is Roberts story of growing up with two dads his real father and the father of his best friend his rich dad and the ways in which both men shaped his thoughts about money and investing The book explodes the myth that you need to earn a high income to be rich and explains the difference between working for money and having your money work for you 20 Years 2020 Hindsight In the 20th Anniversary Edition of this classic Robert offers an update on what weve seen over the past 20 years related to money investing and the global economy Sidebars throughout the book will take readers fast forward from 1997 to today as Robert assesses how the principles taught by his rich dad have stood the test of time In many ways the messages of Rich Dad Poor Dad messages that were criticized and challenged two decades ago are more meaningful relevant and important today than they were 20 years ago As always readers can expect that Robert will be candid insightful and continue to rock more than a few boats in his retrospective Will there be a few surprises Count on it Rich Dad Poor Dad Explodes the myth that you need to earn a high income to become rich Challenges the belief that your house is an asset Shows parents why they cant rely on the school system to teach their kids about money Defines once and for all an asset and a liability Teaches you what to teach your kids about money for their future financial success .
Buy Rich dad poor dad from amazon

6.The Lean Startup: How Constant Innovation Creates Radically Successful Businesses.

The Lean Start up- How Constant Innovation Creates Radically Successful Businesses’ is a book that explains how to work on your innovative concepts as businessman through moments of anxiety and dilemma. The way to start a company has changed drastically over the time and this book will explain you how to utilize this change to our benefit. The book provides the plan, how a 'startup' is a company devoted to creating something innovative under circumstances of extreme uncertainty. As per author Every one of us has one thing in common and that is to clear the way of uncertainty and reach the target of having a sustainable, unbeaten and balanced company.

The book emphasizes on the developed companies that are both economically proficient and make use of human imagination more frequently. Influenced by lessons from lean manufacturing, it relies depends on validate learning, rapid scientific testing, as well as a number of counter-intuitive exercises that shorten product growth cycles, measure actual development without resorting to vanity metrics and learn what consumers really want. Thereby, it a organization to move directions with agility, altering plans inch by inch, minute by minute. The book make you learn entrepreneurship, in organization of all sizes, a way to judge their vision continuously and to adapt and adjust according to situation.
Buy the lean startup from amazon.

7.Think and Grow Rich

Think And Grow Rich has earned itself the reputation of being considered a textbook for actionable techniques that can help one get better at doing anything, not just by rich and wealthy, but also by people doing wonderful work in their respective fields. There are hundreds and thousands of successful people in the world who can vouch for the contents of this book. At the time of author’s death, about 20 million copies had already been sold. Numerous revisions have been made in the book, from time to time, to make the book more readable and comprehensible to the readers.
 Buy Think and grow rich from amazon.

8.The 4-Hour Work Week: Escape the 9-5, Live Anywhere and Join the New Rich

The 4-Hour Work Week: Escape the 9-5, Live Anywhere and Join the New Rich is a step-by-step blueprint to living a relaxed luxury life. This book negates and challenges the old-age concept of retirement and subsequent relaxation or travel. Today, no one has the patience to wait for fulfilling their respective desires since we are living in the age of rat-race. Given the unstable economic conditions of today’s times, no one knows whether they would be able to enjoy and travel life post-retirement. The earlier generations had to struggle a lot during their youth and there was a culture of 'settling-down’ with a government job and enjoy the retirement and post-retirement plans of the government. Nowadays, with the corporate culture, youth do not have the patience of waiting till the last may be 1/3rd phase of their lives to relax. They have the luxury of enjoying along with their hectic jobs because even the companies today want their employees to be stress-free.
Buy the four hour work week from amazon.

Hope you love this post. if you want another addition in the post then please comment . you can join our Facebook Page Best Business Idea to get more updates.