Tag Archives: startups

Startups :Creating barrier of entries

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Very first qn that crosses the mind of first time startup entrepreneurs. How do I protect my idea ?

Foremost important thing : Ideas are worthless unless executed properly with viable business plan.

Here are some ways:
1. File for provisional patent if you plan to sell in US..its not very expensive, but creates some barrier of entry..If you are not in US, follow same in your country if it has IP laws
2. Register your company and file for trademarks ..again not very expensive, but its not very cheap…
3. Partner with a very reputable law firm.For example my lawfirm is WSGR (www.wsgr.com) and they are very good and rank among top 10 in US. Many lawfirms are startup friendly or find one who is. Many defer fees or don’t charge anything for 1st yr. Negotiate with them. Partnering with good law firm has its benefits and it also signal investors that you are advised by some good firms.
4. Build MVP faster . Ideas don’t matter much. Execution and viable business models matter. So work on that.
5. Once you register your company legally and have finalized idea/business model , start branding campaigns to generate some traction..these are not so easy and takes time.
6. Start thinking of EU/FDA compliance process…They require tons of documentation and are very process oriented..get familiar with it…Familiarity and knowledge is important and can keep your copy cats away for some time…
7. As I mentioned earlier, Start selling …Many think they should sell only when they have beta or final product…Selling should begin very early to really understand what works and what doesn’t with minimum resources…fail fast and fail often should be the key to accelerate your success 🙂

Would love to hear more ideas and thoughts from readers.

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Startup Advice and Strategy: What’s important when considering your startup pricing model?

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An interesting and relevant question was asked by a user aq Quora forums . I think this is something every entrepreneur constantly thinks about  ..Have something to contribute, join the discussion here or at Quora at this link :

Startup Advice and Strategy: What’s important when considering your startup pricing model?

I would really look at the following at the minimum assuming you have found your target mkt likes your product based on your MVP.

1. User acq costs
2. Engg costs to develop
3. Life time value (how long you expect to retain them)
4. Anticipated Support costs to retain them
5. Current pricing of existing alternatives

Based on above, If you can come with a price tag where consumer perceives the value of your offering higher than the price tag you set, they will likely to buy. If the value they perceive is more or less same as your price tag , they might still buy depending on the pain level and how good existing alternatives are. If its less than perceived value, it will most likely will not result in any sale.
Also it really depends on who uses your product vs who buys your product. In some cases, if you are selling which is in high or premium range, people might want to check with their spouses or some level of social validation that its on to buy. The same might not apply if you sell to youngsters/teens/singles who earn decent salary or something which can be classified as lifestyle…

Pricing is really a psychological based decision and you have to do multiple experiments to figure what’s the better price tag. One last thing is dont go for short term pricing tricks as consumers will eventually realize the value and your brand recognition will  fall….

 

image courtesy: machiine.com