Do you remember what it was like before you could pay for services through your phone when you had to visit the mall or department store for any small or large purchase?
Finance technology has integrated itself into our daily lives so deeply that the time before it seems like a different era. Whether you use your credit cards when shopping online or make investments using e-wallets like ApplePay or Google Wallet, you are using fintech.
The improved delivery of financial services via fintech solutions fueled the industry’s rapid growth, forcing the well-established financial institutions to see them as a threat.
Now, fintech start-ups are disrupting traditional practices of the finance sector by tackling neglected consumer pain points in diverse industries: insurance, lending, investing, cryptocurrency, risk management, payments, even fintech software development.
Thus, the diversity of the fintech landscape and the demand for digital payment solutions offers numerous investment opportunities for entrepreneurs. So, if you have an idea for a fintech start-up, here’s what you need to know to ensure success:
Tips for Success
While being an entrepreneur is no rocket science, it’s not a cakewalk either. What determines your success is your knowledge, expertise, and decision-making skills. So, here are some tips to guide you through your entrepreneurial journey:
Be Your Motivator
The path to a successful fintech start-up is paved with hurdles and challenges that will make you want to quit. It’s a long, mentally and physically draining journey that you can’t prepare for regardless of how many books you read.
It takes years to get a substantial return on investments to sustain operations without funding. And, until then, you need to keep assuring your investors that your start-up will generate results and profits.
Additionally, with the success rate of start-ups being relatively low, you and those around you can’t help but think that you’re ruining your life.
While the fear is genuine, you must fight through it to succeed in your venture. Be your motivator with unquestionable faith that your idea will bear fruit. You may be competing against incumbents with a long-standing history, advantages, and resources, but if you believe your idea is revolutionary, then find the motivation to keep going forward.
Experiment And Leverage User Feedback
It’s irrational to think you can launch the perfect product on the first try. Regardless of how well you research your consumers’ pain points, you’re not going to have the solution without trial and error.
After the first release, you need to analyze the users’ experience and feedback to improve your product.
Instead of family and friends, it’s best to get feedback from strangers for unbiased and critical opinions. Harsh but genuine reviews can help you polish your product idea and turn it into the perfect solution you longed for from the start.
Remember, You’re Not in it Alone!
Most entrepreneurs start with the thought that they’ll be the boss. However, the reality is far from it. In the fintech industry or any other, every entrepreneur must answer to more than just a few people.
As the CEO, you have the chairman, board of directors, and shareholders to report to, not to mention the investors. Whether it’s friends, family, or strangers funding your start-up, you need to ensure you do right by them and give them a ten-fold return of their faith in you.
Be the Source of Hope for Your People
As stated before, the entrepreneurial journey is endless and unforgiving; the odds are against you, your staff and investors are looking to you as their guiding light.
In such a mentally taxing situation, remember why you started on this path in the first place. The profits and acknowledgments could take years, but to reach that point, you need the motivation to stay on your chosen course.
Investors will get exasperated, demanding why they don’t see a return on their investment; while, your employees will get anxious, wondering if it’s worth sacrificing their financial stability.
Thus, you will need to be the source of hope and keep reassuring the investors and employees that you are on the right track. Give them confidence that everything will be alright.
Always Be Prepared
In life, nothing goes as planned; so, why do you expect launching a start-up to be a straightforward process? As an entrepreneur, it’s imperative you are adaptable and prepared for things to go wrong.
Don’t just have a plan A, but also B, C, D, all the way to Z. That way, if one doesn’t work, then you know your next step.
Whether your start-up is a financial service provider like digital-only banks or a fintech software development company like Logiciel Inc, preparation is the line between your success and failure. You go in blind, and you might as well dive head-first into the shallow end of the pool.
To launch a fintech start-up, you need to scope the landscape, evaluate the competition, market demands, and think of an idea that provides value to consumers. And you must be prepared to stick with your plan regardless of the thorns in your path.
I know it’s easier said than doneciel, but don’t you want to leverage the thriving industry, make profits, and call the shots at your company? Then, launch your fintech start-up now!