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What after market validation? 4 steps by Business Angel Touko Kontro

What after market validation? Four Steps by Business Angel Touko Kontro

1. Be always one step ahead! Think from the start about the time after concept creation and launch. What needs to be taken into consideration when you’re going to scale up? The core of scalability is the business idea itself. You might not have time to plan your long-term strategy when you’ll be extinguishing fires. This is the main reason why many startups fail.

2. The traditional scale-up approach includes obstacles like setting up an office, hiring people and making deals with corporations. It doesn’t have to be this way. Build a team that serves the growth. It’s better to have three enthusiasts than one brilliant mind accompanied by two who don’t even want to be that involved. In business development programs you can meet driving force business developers trying to build dream teams from available people. Brilliant talents are hard to find. The most common startup failing reason, in 42 % of the cases, is that team’s internal structure breaks down. Argues over who have to cut their salary in order to make it possible to hire a needed professional, or who leaves the company so that the right people can be let in. Team building challenges apply to both startups and internal development projects in all kinds of companies.

3. There are different ways to remove the customer’s dependency on your expensively hired people in any business model. If the result of validation is that corporations are the only possible customers, or your product is so complex that it takes army of sales persons to get people buying, sit down and rethink. One effective sales person can contact only twenty persons a week. If you outsource the sales, it will take one or two years to set up and create partner network. Then you’ll have 100 persons selling your stuff but only a couple of coaches.

4. Simply avoid scaling up obstacles. If your business model includes delivery, ask who will deliver, where and why? Could you leave the “moving stuff around” part to someone else to take care of?

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