The first thing to consider when deciding whether to invest in a project is the team. To this end, one factor to assess is whether its members’ skills are complementary, so as to cover the full range of the project’s possible needs.
The second key factor is to look beyond the members’ technical capabilities to determine whether they are passionate and motivated enough to work in a team.
The third factor is whether the team has resources and contacts, through colleagues, that make it stand out.
Ideas Count for Little without Resources
The second aspect to consider when implementing a digital business is the size of your target market. The idea is important, but so are the resources you have to make it happen, in terms of knowledge and contacts.
A good way to start is with a design-thinking session. This can basically be summed up as empathizing with a potential problem in order to identify ways to solve it and then developing a prototype to present to a customer niche for feedback.
In this process, you will want to generate as many ideas as possible and try not to fall in love with the first one. Be prepared to accept some ideas and reject others, and don’t be afraid to fail.
The idea is important, but so are the resources you have to make it happen, in terms of knowledge and contacts.
Customers, Platforms, and Investment
Once you have determined the target for your B2B (business-to-business) or B2C (business-to-consumer) product or service, you can move on to the next stages. The strategy will be very different if the product is targeted at consumers or businesses.
With regard to financing, there are several options. One is bootstrapping, where you begin without any type of investment. You achieve it by selling your first products, which will help you improve the quality of your next products and, thus, gradually evolve and grow. Having little to no overhead is an advantage in this model.
Another possibility is crowdfunding, which can be based on rewards or equity and is useful if you are well-connected on these kinds of platforms.
Angel investors, on the other hand, provide capital to develop a business, provided they believe there is a product or service behind the idea.
You will want to generate as many ideas as possible and try not to fall in love with the first one. Be prepared to accept some ideas and reject others, and don’t be afraid to fail.
Patents and Technology
Certain legal aspects must also be taken into account when starting a business. These include aspects related to IP protection, patents, and disclaimers, as well as cookie policies, privacy laws, and the location of data, among others.
As for technology, one aspect to consider is that it is no longer necessary to design separate mobile and desktop versions, as today there are agile options to adapt to both types of devices without the need for specific code. This is especially useful when resources are scarce.
Cloud storage is likewise affordable, as many providers offer low-cost services for start-ups, charging them only for what they actually use.
Similarly, a variety of useful tools, such as Google Analytics, provide valuable data to mine for insights. These tools offer highly relevant information on customer traffic, which helps you know where to invest.
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