Five Key Factors to Consider When Starting a Second Startup
When you enter into the space of launching your second start-up, there is a lot of consumer expectations and pressure that awaits you.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
In today's era, the word "Entrepreneurship" has become the most widely discussed term amongst the younger generation. Technology has played a pivotal role in shaping up the start-up ecosystem in the country and has created numerous opportunities for the entrepreneurs to enter into this space. While starting your first venture is a once in a lifetime experience, starting your second start-up also requires a lot of thought, correct attitude and leadership. When you enter into the space of launching your second start-up, there is a lot of consumer expectations and pressure that awaits you. Regardless of your first start-up being successful or not, one irresponsible step and you will face criticism from all the corners which at times shakes your leadership quality and positive attitude that in turn affects your start-up's growth. Maintaining a steady growth structure and abiding by the values that you had in your previous start-up helps you to overcome any such challenges that may come in your way.
According to me following are the five key factors that one should consider while starting a second startup.
Choose Your Industry Wisely
Armed with the experience from your previous venture, one should tap into a sector that is not freely utilised and explored. The success of your start-up is heavily dependent on the industry itself. Entrepreneurs who choose the wrong industry often face numerous hurdles in their path and on the other hand, entrepreneurs choosing the right industry have a more easy and eventful journey of growing their start-up into a successful business. Major factors entrepreneurs should keep in mind before choosing the industry are experience, knowledge and interest in that industry. Your drive and determination to see your second start-up becoming successful increases if you are passionate about the industry. Apart from this, it is important to have considerable amount of knowledge and experience in the industry as even if your first venture was successful, one cannot guarantee success if you are expanding your horizon into a new industry.
Work On Your Finances
As this will be your second startup, you are quite aware about how money plays an important role in the business. Unfortunately, running out of cash is one of the biggest reasons why businesses fail across the world. From day one of starting your start-up, one should set up a cash flow management system, and should make sure that all financial systems are in place. Some measures such as submitting invoices on time, taking prompt actions if payment is delayed, etc. should always be followed by the team.
Reinvent Your Thought Process
When starting your second venture, one should keep a fresh and new thought process as what might have worked for your old venture, might not be the best for your second one. Reinventing your thought process on the same lines as your new venture surprises and engages the audience as well as gives your venture an individual brand status. Reinventing your business model and marketing strategies leads to you having a better perspective of your market and increases your chances of having a better grasp at various ideas from the very beginning.
Set a clear goal
In spite of you having prior experience in starting a new venture, one should not take that to his head and avoid starting things haphazardly. You should have a clear set of goals with achievable timelines so that everything runs smoothly and you along with your team has a concrete and straightforward path to build your business. Before starting your new venture, you should know what you are aiming for and build a road map for the directions on which your second venture will be based on. Being a successful entrepreneur gives you a new kind of freedom when you are starting your next one, but what needs to be kept in mind is that success is never guaranteed and one must have a solid plan in hand to ensure constant growth of your business.
Build a Great Team
The prime need for your second venture to reach a level of excellence lies in the expertise and the innovative offerings given by the brand to the consumer. With the pressure of the expectations on your shoulders, employing fresh minds in the business would help create an innovative idea for the brand and would contribute to an upsurge in the business. It is important for an entrepreneur to have a dedicated team just like his previous venture with whom he can communicate the mission and vision of the company. An organization cannot accomplish its goals with the hard work of only one person, but the combined efforts of the team boosts the growth of the company and push it more towards success every day. It is a leader's job to get the right people, put them in their right roles, and guide them on the process of doing their best work.