Starting a business is never easy. At MEC, we understand that because we’ve been there. We know the critical steps required to go from idea, to implementation, to marketing and selling your ideas, all the way up to success. Statistics indicate that over 95% of all start-ups will fail. We follow a rigorous process to ensure your start-up is among the top 5%.
While every company is unique, we believe that there is a formula for start-up success. There are 5 major components of this formula: market, business model, adoption rate, stealth, and the right team. Our professionals will work with you and your leadership team to ensure that your firm achieves the right combination of these components, at the right time.
Your team leadership will use these insights to understand and implement your future growth trajectory. Our experts will help you determine the right time and the right strategy to sustain your growth and avoid some common pitfalls that have wrecked most start-ups.
Positioning Your Business for Take-off, Fast Impact and Double-Digit Growth:
The first component to position your start-up for limitless growth is to pick the right market. The bigger the market, the better. Your target market would ideally be unlimited, with millions of potential applications and users. For example, Google’s target market is every Internet user on the planet! That is nearly 2.5 billion potential customers!
The second component is to define a business model. The right business model will enable your company to capture demand and facilitate scaling up. This step is critical, as changing business models after roll-out and execution will dilute your strategy and impact your value proposition. For example, Nastran’s business model linked monetization to the sale of its FEM software. After a few years, they tried to change its business model by linking monetization to software licensing for limited periods of time. The change made sense; it was in line with newer, specialized software companies and connected licensing directly to software usage. Even though the change benefited the majority of new customers, the older customers – who had paid for the software and not a limited time license – were extremely upset with the new business model.
The third component is to concentrate on a product or service with a projected fast adoption rate. This component is intimately tied to the Market component. A fast adoption rate will avoid tying your company’s success to the successful capture of a key client. For example, car phones were first introduced in the 1940’s. This early mobile phone tied its adoption rate to convincing car manufacturers instead of focusing R&D efforts to make the device accessible to the end user.
The boom of information flow and the internet have made it very easy for potential competitors to learn about new developments. This, combined with the weak intellectual property protection provided by patents, makes it especially challenging for technology start-ups where the barriers to entry are virtually dependent on their ability to launch fast. Maintaining a low profile during development and beta testing is vital.
The Right Team
Last but not least is to select and secure the commitment of top brass. The right experience, along with the proper incentives will achieve growth objectives beyond initial launch. Focus on building the company in terms of revenue and not market capitalization!
After a successful start-up launch, what next? How can you keep your company growing? Are you running up against your natural market-size? Are there market-share limits to your products or services?
Our Corporate Development and Strategy Services will help you answer these questions and develop the right solution to meet your goals.
• Market research and analysis
• Market segmentation and target customer analysis
• Business model and monetization
• Competition assessment
• Strategy formulation
• Business plan development
• Pricing and marketing
• Advertising and strategic partnerships
• Social media strategy