Do this before opening a startup
There is no job with guaranteed success; But if you want to build a company with a high potential for success you need three things – a platform, a good management team, and a giant total addressable market. As long as it is not a “father’s work”, do not be stripped of jobs that have a limited target mass. Because, as stated in Chris Haroun’s article on Inc.com, if all the jobs show an illogical growth and dominate 95 percent of such a market, you will not have much of a contribution to the world because your volume is small.
For companies that reach massive customer base and achieve success with a strong platform, the same examples are usually given: Uber is a business model that uses the taxi platform, Airbnb is a business model in the hotel platform. Apple, Microsoft and Google use the operating system as a platform for the business model, Facebook social media, eBay auction, Linkedin’s human resources as platforms.
These platforms are shaped by our lifestyle. Samples can be replicated countless times, but especially those in the technology field are good enough to describe the power of using scalable technology, with a good platform.
Of course, there is a need for users for these platforms. This means that a good platform is easy to use and must be able to carry other platforms as well. For example YouTube on Google platform is a step, a part.
Chris Haroun, an investor at the same time, points out that the two most important platforms and total addressable markets are the ones that set the business model for startups. “Most investors do not invest in companies whose potential total target market is less than $ 20 billion.” That’s why most initiatives are risking sinking in four years. If an investor wants to invest in success, he definitely chooses Startups to appeal to a huge jar. “For example, if the company we’re investing in gets 5 percent of a $ 20 billion market, that’s $ 1 billion a year.”
What is the total addressable market?
How can a total sector’s total “addressable” market be calculated? “You will invest in the internship. If you write the name of the market targeted by the company and add ‘total addressable market’ at the end, the results should be displayed. If not, find the 25 largest companies in that market for about one account, and collect the annual income down to the bottom. This will give you a sufficient reference. ”
Haroun reiterates that the best investment at this point will be made to startups that appeal to a giant jersey. If we look at this from an entrepreneur’s point of view, whatever the business is going to be, it has to have a wide market potential. For example, when you address a mass-marketer who uses a smartphone to measure a heart rate, investors may not be interested because of a limited audience, even if you capture the entirety of this market. On the other hand, if you are able to achieve a ‘smartphone game’ kit (that is, everyone who has been on the phone all over the world), even if you can not get five of your own, it will be a huge success.