Starting a new business requires a big commitment. At that moment, your network of people can be a critical resource. Cited from The Entrepreneur, here is the list of 3 favors new businessmen need to ask before they launch a startup.
1. Prototype Try Out
In the early stages, you get limited startup fund. Thus, investing in a fully developed product or service may not be possible. As a result, the only alternative left for you is the minimum viable product.
A minimum viable product is a product with enough features to attract early-adopter customers. After you have your product, your friends and family can be a great resource to provide critical feedback to the design process.
You have to gather as much information as you can at that early stage. That information can reduce the amount of uncertainty around a potential business. Besides, it also clarifies the extent customers would be interested in what you want you to have in mind.
2. Business Plan Check
Making a business plan is critical for your business. A business plan is a way to know how best to bring your business to the market.
You can have a fantastic product or service design. However, if you do not launch your product with sufficient financing, a sound operating model and a compelling market strategy, will not gain the traction necessary to succeed.
Therefore, a third-party perspective of your network is a great way to help you uncover needs in the market. Besides, it also helps you to size-up opportunities.
Gaining access to funding can be hard for a new startup. A business loan or a business grant may be possible, yet they bring additional costs. The interest rate can be extremely high. At this point, family and friends are a historically significant source of early-stage financing. Family and friends’ investment can significantly help your startup.
Writer: Lisa Ramadhani
Read now: What are The Benefits of Investing?