How to Launch a Successful Startup?

On the impact of the fast track on overcoming the barrier to entry into the market

The level of competition in nearly all industries and verticals globally is very high. Rapid technological progress has made process automation, simplified development of new products and high-quality advertising available to many companies.

Technologies for developing software solutions, a globally developed system of payment methods, ease of cross-border relations expand opportunities for entrepreneurs. On the one hand, this is good, and it seemed that the threshold for entry into emerging markets for new players should be lowered. At the same time, these opportunities are quickly and successfully used by existing players and capital holders. New technologies equally work for them, which strengthens their position and accelerates growth. With all the availability of technology, it is still very difficult for startups to “buy” time for mass recognition, create a low unit cost of their service or product, and find a unique identity. As quickly as the availability of technology, the speed of occupying free market niches is growing.

If previously the threshold for entering the market was determined by the level of investment in the development of a product or service, now it is formed by the amount of working capital required to increase volume and optimize costs in the struggle for margin.

Just the idea and desire to launch a new business today may not be enough. To launch a successful startup, it is good to have some kind of fast track (asset, resource) at the start, which will form a competitive advantage and form the basis for gaining time. Such a fast track may be one of the following.

• The presence of a developed customer base that trusts the existing brand and will serve as a free channel for the initial mass distribution of a new service or product. This works when an existing business launches a new project in a related market.
• Access to mature technology, IP (for example, a software product or mature service technology) that can be successfully applied to a new market. This will not give instant customer awareness, but at the start it will allow you to be on the same level as existing players in terms of quality and cost.
• Exclusive contract terms with a major supplier. This may provide access to unique traffic, an efficient supply chain, or other production resource unavailable to competitors.

There may be other examples of starting fast track. The main thing is that you need to have something. We do not consider the “unlimited money” here, since with infinite finance one can enter any market. But this is no longer a startup and not a business in the classical sense.

There may be other examples of starting asset. The main thing is that you need to have something. We do not consider the “unlimited money” here, since with infinite finance one can enter any market. But this is no longer a startup and not a business in the classical sense. The existing asset must be correctly considered in the startup’s business plan, its impact on cash flow assessed in comparison with alternatives, and the monetary value of this resource identified. It is necessary to evaluate and analyze whether the influence of this resource on the formation of a sustainable competitive advantage is overestimated and how much time it will allow to gain when entering the market. All this can be done with a quality startup advising.