Tips for B2B Business Start-Ups

I have been on a real Inc. magazine kick lately. They have a lot of great articles. This article focuses on a start-up called PlanGrid. The company's product is an IPad app for the construction industry. The app has been out less then a year yet it is already profitable. they built a system that allowed builders to place blue prints on the cloud and share any updates with anyone that has the plans when updates happen. Preventing contractors from working off old plans. .
                                              Read it Here: PlanGrid

The founder of the company has 3 points for building a company that helped him the most.

1. Expertise in your industry
2. Don't be a Afraid of the Market. 
3. Join an Incubator if Possible.

It is important to understand the market that you are entering, its hard to make money in an industry you have never worked in. If the founder of this company didn't know how the different contractors worked off of plans or that people working off different plans was the root of most problems, they wouldn't have been able to build a product that filled a need. Research your market thoroughly before entering it and know what customers are doing currently and whats a constant struggle. Similar idea to the Lamp Post Group from one of my previous posts.

While you should become an expert in your field before starting a business or entering your company into a new niche. You most also not be afraid of a market. Just because a market might not be preforming well currently, which is the case in the new construction industry. Doesn't mean that there isn't an opportunity to work with those companies. There will always be companies looking to try new things and open to ways of improving their operations. Don't write off an industry because it isn't hot right now.

Incubators, every city seems to have at least one, PlanGrid found its way into one of the most prestigious ones in the Y Combinator.  There suggestion was that an incubator can help the process of starting a business along. It is easier to build a team with the help of experts in an incubator then it will be trying to select your own team through trial and error. You can also use an incubators application process as a tipping point indicator if you should take the plunge and start the company or if you need more work before starting. if you get into an incubator make a full time commitment to the start-up if not continue to work on the start-up or go back to the drawing board.

It's like 'let's apply and if we get in, we'll jump in full blast,' rather than 'let's quit everything right now and hope that we can get basic funding.'"