In today’s world, there is certainly hardly anyone who is left untouched by technology. Within a few years, various areas will be duly covered with the massively occurring technological revolution. Over a few years, we have actually seen the emergence of new startups all over the world. Most startups that have made the headlines often come under the on-demand application-based business model.
In today’s world, there is certainly hardly anyone who is left untouched by technology. Within a few years, various areas will be duly covered with the massively occurring technological revolution.
Over a few years, we have actually seen the emergence of new startups all over the world. Most startups that have made the headlines often come under the on-demand application-based business model.
Whether it is Uber, Airbnb, or Lyft, they are some of the leading unicorn startups which have propelled on demand app development and inspired numerous on-demand startups.
In reality, the complete embracing of innovation is the bedrock of their success. When it comes to Uber as well as Lyft, both of them are taxi booking startups.
The question emerges that if the taxi companies were already here then why these companies were more successful.
The answer lies in the fact that they aren’t just taxi firms. Essentially, they have disrupted the entire taxi industry by means of bringing the latest innovation to different parts of the pre-existing taxi business.
In much simpler words, different traditional businesses whenever subjected to innovation will certainly give birth to a brand new on-demand startup.
Presently, there are different existing services that can easily be disrupted, and the entrepreneurs are constantly finding the latest ways to achieve that.
Entrepreneurs who are new to this domain should follow the following tips to start their on-demand startup.
- Balance Both Supply and Demand
- Begin Small
- Startup with Modular Architecture
- Best App Development
- Pricing Plan
- Stakeholders
- Avoid the Trap
Balance Both Supply and Demand
Essentially the demand for startups, as well as the latest innovations, are quite bright. However, only a small fraction of startups are actually successful.
Among the most important reasons for their failure is that they think their own startup solves quite a big problem, but in actuality, such a given problem doesn’t even exist.
However, they keep investing in developing solutions, mobile app development, and marketing their apps without realizing the actual truth.
Hence, demand, as well as supply, shouldn’t ever go out of the balance. An on-demand startup shouldn’t try to create demand for just itself, and else it will fail miserably.
It must be noted that in a certain case of the taxi industry, the target customers, the people, were in dire requirement of a user-friendly service and Uber arrived.
So, do a complete market as well as trend analysis at both macros as well as micro-level. In order to make the entire business much more smooth, most of them are actually following the Uber model, which is often called as Uber for X.
Begin Small
When it comes down to building an on-demand startup, one should start small as well as process with caution. It doesn’t mean one shouldn’t take the risk.
Many startups take a massive risk, but only a few of them take a calculated risk. It should be certainly kept in mind that not all of the on-demand businesses can be easily brought within a fixed budget bracket.
Different aggregator services such as on-demand handyman services, food delivery, etc. operate on a particularly minimum ownership model.
This essentially means that the overall capital as well as running expenses which are quite small.
Hence, it is often recommended to wisely choose the right on-demand service in case you are going to bootstrap the startup.
Startup with Modular Architecture
Most probably, you haven’t heard the startups with modular architecture. Till a few years ago, technology completely changed every few years, but the situation keeps changing every few months now. Companies that aren’t adapted to the latest technological changes are eventually rejected.
Hence, your on-demand startup needs to be part of exponentially developing on-demand market, hence, create a smart, high valued, and flexible startup.
However, the backend of your startup needs to be layered such that the technology updating is quite seamless.
You need to be essentially ready to accommodate the latest and also relieve the redundant stuff easily.
It is quite an established fact that different popular and successful on-demand services are readily adopting the latest technologies like AI, Machine Learning, Big Data for their entire operations.
Best App Development
Irrespective of the business model of your startup, app development is quite common. Hence, whenever you decide to build an app from scratch, ensure you have the necessary resources such as developers, project managers, testers, designers, etc.
You will also need to hire mobile app developer who fits your budget. Developing from scratch essentially requires a lot of money, generally in the range of a few tens of thousands of dollars.
Pricing Plan
Whenever you are defining the on-demand startup business model, the pricing is the critical factor that you need to consider.
It is quite imperative for you to decide whether to go for a particular pricing structure or just go for the complete platform. Hence, one needs to take this decision based on the entire degree of commoditization.
Stakeholders
In usual cases, the on-demand startups have at least two stakeholders. For instance, in the case of uber and similar businesses, the two key stakeholders are the passengers and the drivers. Hence, you need to decide the number of stakeholders of your startup.
Avoid the Trap
Essentially, most of the startups can easily fall for external funding from angel investors and VCs, which is a big trap.
Basically, seeing the funding got by different big giants in the entire on-demand market, various startup founders often jeopardize their own operation and then follow quite an unsustainable model in order to obtain the funding.
Hence, such type of big funding associated with the unsustainable model also hampers the eventual exist. Hence, accept external funding only if it is quite indispensable.
Conclusion
These above factors are quite important to be considered to start an on-demand startup. These steps have been essentially made keeping in eye the actual reality of the on-demand market where we can actually observe a deluge of the startups and their existing conditions.
Follow the above-mentioned steps and hence work on that to make your own on-demand startup in order to become one of the successful startups.
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