3Entrepreneur’s start-up idea analysis
Entrepreneur’s start-up idea analysis
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Introduction to the start-up
The importance of entrepreneurship is outstanding. Many people across the world earn a living from their entrepreneurial skills. In this essay, the A1 Building group which is a business in the state of VIC will be discussed. This will mainly be the start-up idea discussion and analysis. Recommendations for the future will also be provided. The business was started by Bradley Thompson and Mathew Low, currently core chief executive officers, back in 2011. It’s one of eh best-known insurance company in Australia. The start-up idea came from the rising need of a professional firm to insure buildings in the country. This shows that one source of a business idea comes from the needs of the people. Someone can successfully generate a thriving business by addressing people’s needs. They started by first perfecting on repair works. This formed their basis of their activities since the primary task of a building insurance company is to restore a building after a major eventuality has happened and destroyed the building, for instance, fire or storm damage. They together diversified to other fields of the construction industry which had a mostly free market; insuring of the buildings. This shows a lot of innovation and creativity which are critical elements for any entrepreneur according to Derek (2014). Their venture in the insurance industry has seen them through success within a period of few years. A company that started with less than five employees in 2011 managed to employ more than thirty employees in 2015. This shows great success and growth of the enterprise. In 2015, it was in the BRW starters ranking making over $ 15 million revenue with an 110.10% growth rate.
Start-up background analysis
Bradley Thompson is an Australian citizen born in the early 1960’s. His family members include Dan Calvin, Dustin, Jesse and Karen Thompson. Professionally, he is a construction manager with over ten years experience in the field of construction management. Bradley is optimistic and outgoing. He focuses on balancing his family and working life. A person with great life values such as being self-driven. He is also an expert in the field of insurance industry His ability to lead and achieve the set goals is outstanding. Matt Low, the co-founder of A1 Building group, has a pro-founding knowledge in the areas of managing a business and developing software. This experience has significantly contributed to the growth and the success of the company. He is also an expert in the field of electrical engineering.
One of the key start-up element developed by A1 building group is the element of innovation and creativity. It is through their innovation that they were able to accomplish much. To start with, they were creative enough to come up with a solution to satisfy the needs of the people of Australia. This demonstrates a significant entrepreneurial value. By being able to extend their services by adding others in their business like insurance shows some level of innovation. It’s their entrepreneurial skills which made them achieve this without which it could be impossible. Another distinctive key element that comes from this business venture is the ability to collaborate and work together. Mathew and Bradley were directors of their companies who joined hands and formed one company. Collaborating and joining hands is not an easy endeavor in any business venture. It requires humility and high levels of understanding between the two primary stakeholders (Les. D & James. L, 2016). The two entrepreneurs were able to create a demand generation strategy. This was key as it is one helped to increase the base of the newly formed business. The main thing that contributed to this advantage is that such kind of business was something new to the people of Australia. Such services as insuring of buildings were unavailable, and people yearned for them. Mathew and Bradley were also able to identify a specific audience in the starting of their business. This mainly was insurance and brokers company like AAMI, GIO, APIA, Suncorp, Shan rose and claimed centrally. They were able to approach the major stakeholders of these businesses and convince them the importance and advantages that came with their repairing services. These are essential characteristics fundamental for any entrepreneur (Rick. L & Thomas. N, 2004).
A1 Building group had it’s the main activities clearly defined in their start-up. This ensured that there was no possibility of having any confusion which could lead to disruption in achieving the company’s primary goals. These were; renovation of destroyed buildings and ensuring. According to Alexander & Yves (2009), clarity in defining the business’s primary services is critical. It helps in the setting of a company’s goals, objectives, and mission without which a company lacks direction. The stakeholders of the company were also able to build their margins and increase their client base which is essential in the starting of any business adventure. They achieved these by not only dealing with a renovation but also engaging directly with customers as an insurance company. These meant that their customers included clients with buildings who needed their houses to be insured, insurance and brokers companies who needed their client’s homes to be renovated. Another key start- development by these entrepreneurs was their ability to maintain an outstanding customer relationship. These is evident from their website where they have discussed their integrity, reliability, client service and their commitment to work towards achieving customer satisfaction. The rate of growth of the A1 Building group shows that they had good control system of their revenue. Without proper revenue control, a starting business fails, there can’t be any growth (John & Randy, 2013). Another key start-up element is the use of the right channels while championing their business idea. These included the right marketing through the utilization of the right platforms like media advertisements. It is also evident that the two entrepreneurs had enough start-up capital. It’s not possible for a starting business to grow as fast as the A1 building group since capital is one of the core requirements for starting a new enterprise. Entrepreneurs should always ensure that they have enough capital for their new businesses.
Competitive advantage is a situation which keeps accompanying in a superior entrepreneurial position. To start with, A1 Building group began to offer it’s insurance services at a time when there were no other companies with such great idea. This was of great advantage to the new business as there was no much competition. They were able to build their brand first and gain a huge customer base before the arising of other firms offering the same services. This is what boosted their demand and consequently their growth. Secondly, being the first company in Australia providing such services, they were able to set a price for their services which favored them. Even if the price was high, the customers didn’t have other options except acquiring the services at the set prices. Thirdly, the company was able to tap the best workforce since it had a unique idea. This excellent workforce was made up of experienced personnel who had the right skills and knowledge for the job. Lastly, the company has the sustainable advantage. These means that their services are unique and essential to the people. People will always require their services and at no time when their services will become irrelevant (Michael. E, 2008).
Future entrepreneurial suggestions
One vast region where the start-up can develop a different type of a business is in the rural areas where a lot of buildings, mostly residential buildings are being constructed. Here, they will have a large client base which could incorporate different people. These can be the landlords who can insure their rental buildings, individuals who are willing to insure their buildings and fellow entrepreneurs in the rural region who might be willing to protect their business buildings. This shows that with good planning and proper mechanisms, the start-up can run a thriving business in the region. However, the start-up must put in place strategic marketing strategies which can convince these people in the rural areas. They need to be convinced and be shown the importance of the venture through mechanisms such as radio shows which explain to them the services offered by the firm and the benefits that come with them. The start-up can also develop the business in an industrial town. A city where there are many industrial buildings, for instance, wears houses. Many people using the industrial buildings would like to insure them since they are more prone to eventualities like fire as compared to others like the agricultural houses. A Hugo (2015) once said, With the right mechanisms and strategies, the start-up can establish a very successful business.
In the future, the start-up ought to extend their enterprise by trying markets outside Australia. The best continent where the start-up can begin the business is in Africa. Here, the start-up’s idea can be perceived as a new one since most of the countries are developing and there are no such services. The start-up would be enjoying a broad range of market ranging from owners of residential buildings to the owners of commercial and industrial buildings. Many in the continent will appreciate since they need such services as house insurance only that they are not available to them. However, the start-up should be ready to use the best available marketing skills to convince potential customers who are not aware of the existence of such services. The start-up should then try to go global and try other new markets across the world.
The start-up can also widen the range of services they offer to serve more clients and make more money. Since they are focused on insurance and the renovation of buildings, they can also try the construction of new buildings for the clients. These would, however, require more capital, but its outcome would be something of substance. Since the company is already known to many, getting clients for the new service will be much easier than a newly formed company offering the same services. At the end of it all, the enterprise will have enlarged, and there will be an increase in revenue.
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