Starting up a FinTech company in the 21st century and at a time the world is battling the coronavirus pandemic is quite a challenging and daunting task especially when you don’t have extensive work experience in the industry. Interestingly, every era comes with its own unique opportunities and even in these challenging times, budding entrepreneurs can take a leap and birth their dreams to reality.
Launching is not as difficult as it seems, considering that even the biggest companies in the world also started as ideas in the mind of someone who eventually took action and launched the company. If you have an idea of a business venture you are already on the right path. This guide will unveil to you the things you need to put in place for you to thrive in the FinTech industry.
Launching a FinTech company is more than having a nice idea or ambition of becoming the next millionaire tech expert. There are already so many FinTech companies and starting without a clear-cut mission and strategy is tantamount to wishful thinking. Society is full of opportunities that can be leveraged and developed into a business opportunity. Your task as a prospective entrepreneur is to find out these opportunities and develop them.
Finding a problem to solve, takes your startup from being just one of the numerous options in the Fintech industry to a strong force to reckon with. Subsequently, this makes it easier to form a partnership or collaborate and thereby providing the necessary leverage to help scale up.
Pick a niche
FinTech is a generic term that encapsulates a range of financial solutions. For instance, Digital payments, digital banking, digital lending, digital investment, and digital Insurance are part of what we refer to as FinTech.
As a startup, you cannot be a jack of all trades; you will have to have a niche you are specialized in. It is best that the solutions you are offering target a niche of FinTech. This will ensure you can channel your resources precisely. Starting without a focus can be counterproductive and it could limit your chances of success in an industry with hundreds of established competitions.
Even though you started with a bright idea you must be interested in sustaining creativity and innovation. I cannot adequately emphasize the importance of always questioning and trying to improve. This implies that you must continue innovating to retain your customer base. FinTech is quite competitive; therefore whatever strategy you will adopt must in your career should include innovation.
Look for gaps in financial solutions and then develop programs that can cater to these gaps. Creating new products and services based on the need at the time. All of these will help maintain relevance in the industry. The culture of innovation is timeless and should linger on even after the business is well established.
Prospective entrepreneurs need to master the art of financial prudence because sooner or later this could tell on their success in the industry. Do not always resort to loans.
The capacity to channel resources towards profitable ventures can make or mar any organization. Invest in your business rather than taking out all the profits and then getting stranded later on. This is important because in FinTech as with most other industries, patronage may not always remain at the peak. The coronavirus pandemic has shown that unexpected situations can arise. FinTech startups that have a solid financial structure will be better positioned to survive such eventualities.
After all is said and done, it is important to register with the right government agencies. You must also aim to satisfy the provisions of the law as much as possible. Failure to do this could lead to a ban on the startup regardless of whether it is performing well or not. Governments do have the legal powers to sanction businesses. File the necessary tax returns as well. All of these will help ensure you do not get to be on the wrong side of the law.
The world is angling towards a cashless system, this presents a fantastic opportunity for FinTech innovations to thrive. Just like most entrepreneurial efforts, it may not be completely rosy but with diligence and continued innovation, your efforts will yield results. Don’t be intimidated by the big players in the industry, all successful FinTech businesses, including my own, started small but with time we’re able to carve a niche and obtain their market share. There is absolutely no reason why you cannot obtain the same outcome. It is a competitive industry and with a good idea and workable plan you can walk your way to the top.