Category Video Surveillance Software

Steps Involved in Developing a New Business

November 16, 2013 0 comments

A few days ago I was offered to prepare the presentation on entrepreneurship and why Los Angeles to be a better place of doing business.

While brainstorming how to combine most valuable of my experiences in my speech, I decided to make sure I prepare several presentations, because it may easily happen that most of the people in the room will be looking to start a business now or in near future, or even better already started and need to hear about somebody trying and doing the same.

I think the most important is to have an elevator speech that successfully describes your business. I am struggle with this myself. The successful elevator speech can be developed later into executive summary. This is the first step into developing and delivering impressive investor presentation. Here I want to mention you need to conduct an extensive research - both competitor analysis and their pricing strategy and detailed consumer market research that will help you to prove a business concept.

Every Investor wants to know

Even most investors are daydreaming to hear new Facebook coming, but realistically you need to know right away that people can buy your products or services. Most companies fail because they do not do their homework, they have this perfect idea, and later they may realize that investments are gone, but their clients were not willing to pay the price.

Nowadays there are new ways to fund our projects, and if the project is community related the best step is to do crowd funding; if your product is business to business or business oriented, it is better to bootstrap it with your clients and have a prototype ready before you go to ask for money.

Elevator speech

I want to talk here in this post of the elements of elevator speech and what it takes to create a right approach.

Elements of a Pitch

(adapted from Conor Neill)

  1. Description of the problem you solve
  2. The individuals or groups that will benefit
  3. The specific product or service you deliver
  4. How you differ from competitors and substitutes
  5. How you will make money
  6. What resources you require (money, time, support, expertise)

Enumerate the Steps Involved in Developing a new Business

Here is an interesting article about those steps Summary of Survey of 650 startups

One of the steps to be successful is to constantly learn and apply your knowledge to make more money:

"Founders that learn are more successful: Startups that have helpful mentors, track metrics effectively, and learn from startup thought leaders raise 7x more money and have 3.5x better user growth."

Here is another fact:

"The right mentors significantly influence a company's performance and ability to raise money. "

Innovation

Innovation is a very important factor to success: but today you need to know as much as you can not just about your business, but about technologies available that only technical person can help you with to translate your requirements into products with innovation. Most people overlook importance of technical founders.

Here is how you can innovate

  1. New Product or Product Quality
  2. New Method of Production
  3. New Market
  4. Conquest of Raw Material
  5. New Kind of Organization

(adapted form Schumpeter)

Pitch your idea to 12 strangers

In conclusion, in order to be successful, the very first thing you need to start is to pitch your business idea to 12 strangers, I would suggest that at least 4 of those people will be professionals form the industry to which you are going to sell). Track their responses, including the questions they ask, and prepare report.

Sometimes you can analyze the consumers and the industry by just talking to a small segment.

Here is a good example how my partner validated idea for writing software for Digital Video Surveillance and the problems we uncovered during our research phase. We had a software we previously delivered for real time broadcasting in Erlang, so we just bought non-expencive IP camera ($20) and very non-expensive computer ($60 bucks, - today there are plenty of other hardware such us www.raspberrypi.org for as low as $25.00. It worked perfectly and even the resolution was good.

Validating the idea of writing a software for Digital Video Surveillance

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Creative Marketing Research for Digital Video Surveillance

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Posted by lisa
Categories: Business Entrepreneurship Product Innovation Marketing Video Surveillance Software