5 activities that have a colossal impact on a startup

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Starting a business involves taking a lot of risks. Many questions, ideas and concerns arise in the mind of the budding entrepreneur. In order to turn a business idea into an independent organism, it is worth spending time structuring it. The first step to take in order to get closer to the goal is the creation of a business model. However, it is important to keep in mind the key steps that will minimize the risk of making basic mistakes, and these include: defining market segments, distribution channels, revenue streams, costs, as well as customer value and value proposition. The analysis of these 5 questions is the cornerstone of a new business, so it must be approached with due diligence.

Market segments

When starting a business, it is worth asking yourself: who do you want to target? It is well known that a product designed to meet the needs of all customer groups will hardly meet the expectations of lithuania email list any one of them, so it is worth identifying them. One way to analyse this question in depth is to segment the market, that is, divide it into parts that allow you to identify the different customer groups of the product. Knowing and analysing these groups will allow you to make products that respond to customer needs. For example, a mobile phone aimed at young and active people will have different features than a model for older people who value, for example, large keys and long battery life.

Distribution channels

An important aspect is also choosing the right distribution channel, i.e. the route by which the product will reach the target customers. This depends on several factors, such as the type of product, price, type of buyer, and the size and resources of the company. The basic division is into direct and indirect channels. The first group includes sales through intermediaries (wholesalers, stores). In direct channels, the producer delivers his product directly to the consumer. The basic activity in selecting a distribution channel should be a good analysis of the market, its segments, and the volume and frequency of purchases. There are many distribution channels, so the key decision is to choose the most popular and profitable ones. It is also a good idea to analyze the channels used by the competition. It is important to see if they work well for our company and to introduce improvements that help us stay ahead of the competition.