5 things to keep in mind while starting an online venture

05 Mar,2012

By Rohit Sharma

 

#1 “Be Frugal” should be your mantra

It is very important to be extremely frugal. Cash is King and start-ups should keep their fixed costs as low as possible. Try multitasking. It is important to conserve cash and be completely stingy before you raise the required capital for the business. Ideally, you should have capital for next 18 months either ready or in the pipeline.

 

#2 Team, a critical success factor

It is all about the team – their motivation levels, dedication and perseverance to make it happen. It is important that the co-founders have a common vision in the game. One of the biggest challenges is to hire the right start-up team (excluding the founders/co-founders). The team needs to be extremely good in terms of skill-sets; one also can’t afford to hire very expensive people. As the promoter of the business, you should clearly articulate your vision so that the start team comes on board completely motivated and with a strong belief in you and the business.

 

#3 Business Metrics: Get them right

It is very important to get the key business metrics of your business right from day one. Have complete clarity in terms of key growth drivers, revenue drivers and cost drivers and continuously monitor track more efficiency in the business. Business plans should not be made for the VCs, but for yourself and for the growth of the business. If you have done that successfully, VCs will anyways buy in.

 

#4 Don’t give up too soon

It is important for the entrepreneur, especially in the digital space to be extremely nimble and flexible. Mainly because the environment is very dynamic, business models are continuously changing, new technologies/innovation keep on coming, so one should be prepared to quickly adapt to newer business models if required. You might not be doing exactly the same thing eventually that you started with. There is nothing wrong with that as long as you have created a sustainable growth model in your business.

 

#5 There is no experience like good customer experience

It is very important to focus on a great customer experience. It is all about the right product that the customer loves and it could be the biggest differentiator for the business. One needs to spend disproportionate time to deliver an outstanding customer experience across all the value-chain components of your business. A great product or customer experience can be your biggest marketing tool.

 

Rohit Sharma is the Founder, Wopshop.com.

 

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