FIVE FACTORS TO CONSIDER WHEN BUILDING DURING A BEAR SEASON
There are so many factors to consider when building a startup, all of which are engineered to see to the success and progress of the project. One might think the bear season and its downtrends are a red flag to put up a product or service. While this might seem true owning to the fact that several other businesses crashed and a lot of employees lose their jobs when the bears dominate the financial market.
All the factors wired to keep the startup in check during the bear season are merged into these five factors.
1. PROPER PLANNING; Since the bear market drives less prepared startups into the fold and down rounds, It is important as an investor to have a proper plan to ensure your business’s scalability and sustainability.
For every successful project, a good business idea is seen as its major driven force it goes in hand with the passion to create a solution with your product or services.
During the planning stage, more focus is given to the business idea, the manpower, tools, and strategies to bring this idea to life. It also visualizes a specific audience and how their demands can be met.
Proper planning helps you seize the opportunity of raising a great project even in a bear market that can stand the next bull trend.
2. BUSINESS IDEA AND MARKET STRUCTURE; Another Backbone of a great startup is the business idea, this serves as the framework for other vital aspects and activities in the start-up operation. Startups that scale through the bear season are backed up by quality and valuable Business Ideas.
A good business idea focuses on the needs of the people or some gabs in the market for other products and services already in circulation and fixes these notable problems by offering solutions with the new project the startup would be bringing into the market ensuring a win-win between the founders, investors, and users of these products and or services.
The business idea alongside the business structure helps you evaluate who your products are for and whom you require for the growth of the product. A valuable product’s use case attracts users and builds a community of believers around the business idea.
3. FUNDING; This is a very vital factor to consider when putting up a startup, the market may be experiencing a downtrend but your ability to provide funds for some aspects of the project like funds for production, maintenance, distribution of sales, employee payments, advertisements, and all marketing strategies. This aspect can be sorted out with personal savings, credits from family, friends, and investors, grants from government and non-governmental organizations, loans from banks and exchanges, crowdfunding, and Venture capitalist.
It is also important to know that the sources of funds depend on the nature of the project and these sources can hurt your project if you have to pay back these loans in a short term then the startup can comfortably raise funds.
After sourcing funds, the business should practice money obligations to help the budgeting.
4. MORAL SUPPORT; Other than manpower, the business idea, and financial support, every founder of a startup at one point or the other needs psychological support to help boost their motivation, counsel, and advice through the building process.
The building can be brain-draining especially during a bear season when people are most likely to withdraw or lose interest in what your product is offering or dump the project out of fear of losing more with every dip in the price and value of the financial market.
Moral support could be self-driven by passion and zeal to solve a particular problem in the market, it could be from business role models whose products help you model your business structure to meet the needs of the audience.
Every startup needs more moral support for every building stage especially before, during, and after a bear season.
Moral support can also come from Business Psychologists and Therapists, surrounding oneself with good investors, project managers, and a minimum viable community that strongly believes and supports the project and its use cases.
5. COMPETITORS AND FEEDBACKS; The next factor every startup should consider is its competitors’ role in the market during the uptrend and downtrends in the market cycle. Any startup is bound to crash or scale higher and the essence of considering competitors isn’t to copy their projects and products but to fix the gaps lurking in their business.
The competition serves as a daring line between the good and the ugly and a mirroring effect and what might likely happen if your product follows the same path.
Good competitions help you fix bugs, see problems from another angle and offer solutions to them.
Feedback is also necessary at this stage because most user experience recommendations and critics help you conduct more research and build structures and strategies needed to promote efficiency and flexibility in the supply and distribution of the product and services.
Research local business laws and regulations that best suit your project.
Competitors’ stage in building a startup during a bear season could be difficult since most projects are on the verge of crashing or running low on resources.
A proper business plan sees this as an opportunity by figuring out the strategies to employ to fix these lapses.
