The Number One Priority Every Startup Founder Must Aim At In Building A Business (Network Effect).

Idea Build Up

 It just starts with an idea. Some of the reasons we think of these ideas are:

• Being fed up with the demands at your job
• The salary earned from your job is not enough to support you and probably your family
• You feel you're not secured
• Sometimes you think you can do so much on your own
• And basically, unemployment also plays a major role in such decisions.

Whatever situation you find yourself in, you're right in one way or the other to start a business on your own. But building a successful business is not only about the idea and the execution I believe. In my opinion, I will suggest building a business that will grow to create network effects in the field your business operates in. 

What is the network effects?

Network effect simply means any kind of product, service, or platform that mainly depends on the number of buyers, sellers, or users who use that particular business provided as leverage. (Don't get confuse here 😀 my cherished reader).

Most times in business, the greater number of people who use your service or product, the greater the network effects and to a larger extent the greater value you are expected to provide.

Examples of businesses with global network effects.

Over here I have categorized them based on industries and the service sector they operate.

• Social Media Platforms: Facebook, Twitter, Instagram, Snapchat, LinkedIn, Pinterest, Whatsapp, and a couple of others.

Social media icons

• E-Commerce Trading Platforms: Amazon, eBay, Alibaba, Etsy, and many more.

Online Shopping Box

• Ridesharing websites and apps: Uber and Lyft

Uber on phone

• Delivery services: Uber Eats, Postmates, etc.

An uber eats deliverer 

Not only the examples mentioned are businesses with network effects. You can add your own in the comment section. Let's get interactive 😊

There are two types of network effects in business. These are direct and indirect.

(The types will be covered in the next post. Click here to subscribe for early reading)

Why Build Your Business With The Network Effects Mindset?

It's very simple: the business with the biggest network effect becomes extremely successful in the long term. The business i.e; product, service, website, and platform get the most buyers, sellers, users, subscribers ultimately the biggest share of the market. You get the most customers to build on.

Why Network Effects Must Be A Top Priority Regardless of The Type of Business You Operate or Want to?

Assuming the business you're engaged in or want to undertake cannot compete with the big guys who have already built for years? Never worry, just focus on becoming the first option to come to in your locality, your state, and gradually build from there. 

Imagine a quarter of the people in your local community buy your cleaning products, patronize your photo gallery materials, purchase their snacks from your shop, get their phone accessories from you? I'm very sure this would be a huge booster for your existing or soon-to-launch business.

Scared of Reaching This Goal?

It's okay if you're doubting whether you can achieve this or not.

Scared, right?

We all must know that it's going to take efforts to build that kind of business we want to. If you and I only want to build a successful long-surviving and thriving business,  then have the network effect pinned on your wall to serve as a reminder and continue to build gradually.

I wish you all the best in your business endeavors. Have a good one till you come back to read again.

I will be very grateful if you could go ahead and share this post. Thank you so much.