Many entrepreneurs fall into the trap of believing that they need to create something new when starting a business. The truth is startups that launch with new products often run a high risk of failure, since it is built upon assumptions that may not necessarily be true.
Instead of creating something new and then finding a reason for its existence, try reversing the thinking process. Identify a problem first, then find ways to address it. This, along with a solid plan, is the key to a sustainable business.
It was with this principle that Shootsta was founded. The opportunity presented itself when I realised that the demand for video content was growing, but client budgets weren’t.
Organisations that wanted to produce more videos would often hit a wall when they realise the high cost involved, and a large number of resources and time required to produce quality videos.
Responding to the industry demand for cost-effective, high-quality videos with quick turnaround times, Shootsta empowers clients to become videographers and support them with the post-production work. This essentially means that clients can record their own videos any time, at their own pace, with a kit that is provided to them.
The idea quickly took off, and Shootsta is now one of the fastest-growing video production companies in the world.
Know the landscape well
No good idea is formed in a vacuum. The best way to come up with a new business idea is to first be actively involved in the industry. Having also founded a video production agency over 10 years ago, I had a clear understanding of the market and its demands.
Also read: Why every startup needs to embrace video marketing in 2020
Knowing that the enterprise video market is also projected to grow from an estimated US$16.34 billion in 2017 to US$40.84 billion by 2022 helped propel the idea to fruition. Of course, if you have an idea and want to test the market fit, interview as many prospective clients as possible.
You’ll pick up some valuable information but just remember that their words mean nothing until they put their money where their mouth is.
Starting on a shoestring budget
It is a common belief that having a large capital is necessary to run a business successfully. However, there are many ways to skin a cat. While having a sizeable capital to work with can be beneficial, it isn’t necessary.
Just look at how renowned brands like Spanx, GoPro and Craigslist, for example, bootstrapped in their early days. As for Shootsta, we nearly tripled our business growth in Asia while bootstrapping the growth from our positive cashflow.
Running the numbers can be scary, especially in the early stages of a business, but don’t let the fear of a thin cashflow hamper your potential for growth. Once you have tested your idea, really ask yourself whether you need early-stage funding or if your product is enough to attract clients from the get-go.
It can be tempting to aim for hyper-growth, but I believe that slow and organic growth is more beneficial as you focus on market demand and gain a strong reputation in the long run.
If a product is a right fit for a market, growth will come naturally. Just don’t take anything for granted – treat every percentage of equity-like gold, because it’s quite possibly the most valuable asset you own.
With the right attitude and enough research, it is likely that any new venture can thrive. In a world where hypergrowth has become an expectation and entrepreneurs harbour hopes of becoming overnight millionaires, it’s worth keeping in mind that that the slow and steady, more often than not, win the race.
–
Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post. We are discussing inclusivity at work and women all of March. Share your thoughts, tips and best practices on how we can make the startup ecosystem more inclusive, gender and culture diverse.
Join our e27 Telegram group, or like the e27 Facebook page.
Sign up for the e27 Webinar: How to believe in yourself when no one else does
The post Slow, steady and sustainable: How to win at scaling up your startup appeared first on e27.