By: Shanza Anwaar
CBC News reports that given Canada’s current demographic trends, the nation can support up to 150,000 new businesses in the next 10 years. With 47.6% of startups in the service sector failing in their first 5 years, it’s important for startup founders to identify commercial needs, create sustainable revenues, and market products nationally as well as globally.
Gilad Avidan, is a 2011 TechStars participant and cofounder of Smore, an online platform for creating effective online flyers to help promote apps, products and events. Avidan shares three things he has learned by launching his own startup that all cofounders must consider before managing a team and a new product:
1. RECOGNIZING YOUR CUSTOMERS:
By identifying your perfect customer, you can hone in on the buyers’ specific needs. Driving value is also essential. Avidan stresses that it’s better to have 50 customers who can fully appreciate the value of your products instead of 1000 customers whose interest may wane over time.
2. INVESTMENT DOESN’T IMPLY SUCCESS:
Money can “buy you more time” but it also comes with a liability towards investors who have provided you with the funds. Moreover, entrepreneurs should research various sources of capital before opening their businesses for direct investment.
3. TAKING PRECAUTION WHEN BUILDING YOUR TEAM:
Avidan states that “each hire needs to make an impact”. People can be your most expensive resource and their talents should meet the needs of your startup: the specific skill sets required, a vigorous work ethic, and a strong commitment to business goals. You could also consider hiring interns, a great low-cost way to access talent.
Entrepreneurial success is dependent on effective strategies for marketing products, developing a strong team dynamic and focusing on value creation. The RIC Centre offers mentoring services that are committed to nurturing innovation by coaching entrepreneurs on their path to market success. Our Entrepreneurs-In-Residence offer valuable business advice for startups in the ICT, Digital Media, Clean technologies, and Advanced Manufacturing industries. Click here to register. To learn more about Avidan’s tips on being a startup founder, click here.
Shanza joins the RIC team as a Social Media Intern. Pursuing two undergraduate majors in anthropology and professional writing at the University of Toronto Mississauga, Shanza is also a co-editor and content writer at the Digital Enterprise Management Society. She hopes to make her mark as a Social Media Consultant.
The RIC blog is designed as a showcase for entrepreneurs and innovation. Our guest bloggers provide a wealth of information based on their personal and professional experiences. Visit RIC Centre for more information on how RIC can accelerate your ideas to market.