In every Summer Olympics, we would often see hurdle sprinters sprinting at ultra-human speeds and then hopping over 33-inch hurdles with some mighty willpower and strength to end up over the finish line. According to recent data, it takes around 13s, with the world record being a shocking 12.12s in a 100m hurdle race. As the years went by, the records got even harder to catch up. Today, when we glimpse at the business world, this is nothing but a similar story when it comes to startups especially when trying to enter a non-existing market. 9 out of 10 startups fail, while 10% of the businesses in any industry, on average, don’t even get to survive the first year. Leveraging startups for profit is not only getting difficult but also riskier. As sustainable business ideas are getting harder to find, startups now must pass over some important hurdles to go over the finish line, especially if it is for a non-existing market.
Solid Startup Mindset is responsible for being at the core of the beginning and end of any startup. Just as Guy Kawasaki, a famous venture capitalist, once said in an article, “It’s a mindset where the glass is half full. It’s not about hierarchy — it’s about whether you’re good or not and where you’re going, not where you’ve been.” The mindset hurdle is something the entrepreneurs must constantly overcome in different stages of the venture starting from the idea to launch and scaling. For untapped markets, it’s even more important to have the mindset right, as it’s the most variable any entrepreneur can have.
The trickiest barrier for a non-existing market is to locate the latent demands and define the target customers. It’s preferable for the entrepreneurs to have prior experience in similar industries to identify the trends and overall demands the solution to the problem could produce before the launch. Research is key, and it would be a mistake to wait until a product or service is fully developed before researching the market. It’s important to question whether the idea would reach the majority instead of only the early adopters. Even if vague, stipulating the total available and obtained market could make the operation functions cost-effective and efficient after the launch.
The next important hurdle to pass would be the proof of concept as start-ups that have grown robustly are mostly because of being the right catalyst that solved the problem that people were not able to find a way to solve. About 34% of small businesses, including startups, usually fail. Finding out the product or service’s shortcomings with pilot tests can help rectify them until the final launch. Before the big launch, remaining adaptable and receptive to the feedback received from the target audience as the development continues can provide better scope for the startup to survive. All this would ensure a better product or service in the market and, at the same time, give validity to what the customer experience would be like and how they adopt the product. It’s simply just like how Pathao began their pilot test through a Facebook group to check the validity of the concept with their first customer, who asked if they could distribute the sarees as a parcel. A concept that can be successful in scale is highly likely to scale up by leveraging sound strategies and efficient investments.
According to the USA startup market, one of the biggest international hubs for business, the average cost of startups could range from around $2000 to $5000. Most of these businesses shut down permanently, unable to meet the expenses. Startup expenditures for businesses in the landscaping, construction, accounting, and online retail sectors can reach $5,000 and the most costly industries to start up are manufacturing, restaurants, and healthcare providers, as these businesses often need to raise more than $100,000 to get off the ground. Financial hurdles are what make many startups a daunting adventure however, with proper strategy and utilization of funding opportunities, this can be easily overcome. Now, different startups have different cost structures, and depending on them, entrepreneurs need to make decisions based on the freedom they want to keep when choosing among friends and family, angel investors, venture capitalists, or bank loans for initial funding. The goal is to lose as much less share as possible while raising the funds. With the rise of startup like bKash, a Unicorn with a valuation of 2 Billion Dollars, the Bangladesh Startup market also got a boost as many other startups such as ShopUp, Pathao, Chaldal, Shuttle, and Prava Health started popping up to revitalize different types of industries and solve the local problems in Bangladesh Market. With a population of over 180 Million and the earnings per household increasing every year, it has become a great place for businesses to flourish. In Bangladesh, An increasing number of middle-class and wealthy people make up the population, which is predicted to reach 35 million by 2025. As a result, the GDP of the nation has increased gradually over the past few years, rising from 3.4% in 2020 to 6.9% in 2021 and 7.2% in 2022. Due to such growth in the economy, companies now operate in a welcoming atmosphere with several options for funding and assistance. Several organizations are built around these startups, from governments to banks, to help them engage in the Bangladesh Economy. Moreover, several programs, such as Shark Tank Bangladesh, BIG, and GP Accelerator, that serve as incubators and accelerators for business are held every year, facilitating their access to networks, funding, and support for startup development.
The next step is to have the right people around the business to both protect it and at the same time accelerate it. First of all, starting a business in a non-existent market is the riskiest, thus making it mandatory to have solid business advisors starting Attorneys, Accountants and Bankers to guide you both legally and financially. Sometimes, startups face big tensions if their product is not easily replicated. It’s always important to have the products patented in time before the launch to ensure the business will be successful in the long run. The other part involves having the right team, from the co-founders to the initial employees, who actually know what they are doing and can contribute to the fullest. In Startups various types of skills are required without any bounds for specialization. As a result, it is important to build a team that can sync and adapt to changes as quickly as possible.
Creating the first impression that stays long enough is quite evident for creating a product or service’s own unique selling proposition in the market that can’t easily be copied by similar competitors is always of greater significance. Context and roots of the product can help define them with more clarity. Branding it on sentimental value with local names can create brand awareness faster with the objective to successfully grab the early adopters just after the launch as much as possible. Both Marketing and Branding are a double-edged sword for Startups. As this is a cost-incurring function, the marketing strategies must align with the end goal to reduce any increase in spending. For no existing markets, the most significant part is to create a solid customer base and this can only be done through proper marketing activities. To increase the customer base, it usually starts with consistently providing an excellent product or service and introducing rewards programs to entice customers to return. With the rise of social media it’s more cost-effective these days for startups to start using social media affiliate marketing, which is paying influencers to recommend things to your target market. To retain these incoming customers it is also crucial to concentrate on providing excellent customer service and utilizing market research to have a deeper understanding of your client’s expectations, requesting immediate feedback from the client and working on improving on it as fast as possible. Now while the marketing activities and customer acquisition continue, it’s important to keep track of the financials and competitors. Byju’s an Indian Ed tech startup which rose to a staggering 22 Billion Dollars in valuation in 2022, had its valuation drop below a Billion recently for huge amounts of marketing activities that failed miserably when compared to its competitors. While making campaigns with big stars can certainly give a boost it might affect them in the long run if not used properly.
Lastly, the hurdle that never ends for startups is that of changes all around us. During COVID-19 while most small businesses were shutting down, 10 Minute School faced the biggest dilemma to struggle during the toughest time to humanity in recent times to survive too. Without any sponsors, it was looking for a way to keep its functions open. The way to come back was to utilize the audience and fame it already had and start selling exclusive courses at affordable costs to generate revenue back into the company and revitalize it. It really worked well, as they were even able to generate funding of $2 Million from Sequoia Capital. Now getting to the point, Startups undergo significant transformation throughout their initial years of launch. Changing and adapting the company’s business model to fit the market and industry is essential to success. As a result, it’s crucial to employ progressive thinkers who will ensure that everyone is flexible to keep up with the trends and developments in the market. It is also important for the company to always be prepared to change to meet changing customer demands so that the company can maintain their position in the market for years to come.
With the Bangladesh economy always on the verge of expansion every year and a younger, and more skilled population building up, it’s easier for startups in non-existing markets to take the challenge. However, it is important to pass the hurdle of the race and adapt to changes as quickly to succeed in the long run.
Author: Rojer Baroi
