The startup is a very prominent concept in the business world today. The startup concept is a business model trend that started in Silicon Valley in America. Then, it spread all over the world. It is a term used for a company that takes action from the zero points. They are companies that produce solutions for a problem, and apply these solutions and develop very quickly. They appeal to large masses and deliver the product or service they provide to the user quickly. Startup projects were generally active in the field of technology and software. There are countless reasons to start a startup.
Today, startup companies have emerged in different fields, such as financial technologies, finance, and marketing. Also, there are startup companies that produce products or services for users’ needs. Entrepreneurs design their startups with a great understanding of speed and flexibility. The reason for this, startups aim to keep up with the pace of the modern world.
Entrepreneurship and a startup are often confused. If you have an exit strategy your company is a startup. That means if the idea of selling your business is in your mind, your company is a startup. But, if you do not have a strategy for your business, then you are an entrepreneur. So, if you have not determined who will run your business in the future, this is entrepreneurship. So, the first rule of being a startup is to have a business plan. All the necessary information to start a startup is in the rest of this article.
Starting a Startup
Every person in the world might have good ideas. But, this alone is not enough to start a startup. The realization of these ideas is going through quite painful stages. Planning and implementing an idea over time requires patience, effort, and diligence. Apart from that, ideas that you have not worked on and that you are not cared about will succumb. We can say that almost every successful startup goes through the following thought and technical stages. Follow these steps to start a startup:
- See what’s missing around you.
- Take notes to not to forget.
- Make a prototype of your product and publish this prototype to people.
- Always check it over.
- Find partners for your startup.
- Build an effective team.
- Register your business.
- Find an investor and launch the first release.
- Start selling.
- Always capture your potential customers.
- Sell continuously.
- Grow and develop.
Even if you have good business ideas in your mind, there are some difficulties in launching a startup. If you have started a business, it means you have to work harder now. One of the most important rules of starting a business is to do market research. One of the most important things to do in the early stages of your startup business is finding an investor. You may apply for venture capital funds to find more resources for your startup. Also, angel investors are very important to solve the financial resource problems of your startup. Venture capitalists are also private investors who can risk their capital for your startup. Another important aspect of finding investment for your startup is the amount of money you need. Finding large amounts of money for your startup will naturally be more difficult. Finding the necessary financial resources is one of the most important steps to start a startup.
How to Be Successful
Start companies might be difficult than it looks. But, you may overcome this situation with dedication and working harder. You have to pay this price to start a startup from scratch. It is easier to run small businesses. However, if you are in mind to grow your business even further, a busier than usual calendar awaits you. Also, if you find good investors who trust your business, there is no obstacle for your company to grow. You may even be among the companies whose name is mentioned on Wall Street. There are some things you should know before doing all this.
See what is missing in the world. Before Uber, you may have noticed that taxi rides were not that enjoyable. You may have also noticed that before SpaceX, people were less interested in space. But even these ideas are already a thing of the past. So, what is missing in our lives right now?
No matter how smart you are, you cannot remember all of your thoughts. Your conversations with others, your random observations, and your thinking while showering are worth recording. Put them on paper or record them somehow. Dreaming about something is also valuable. Einstein calls this the thought experiment. Most of your thoughts, even the best, never come to light. Even if you put them down on paper, you may forget them still. As an exception, what you remember is only the prototype you made. If it is possible, make them a physical object, program, and design. So, do whatever it takes that can make them more than just thinking. Most people cannot go beyond this point. If you make your ideas physical, it means you have exceeded this point.
Step by Step to Success
If you started a startup and made a prototype of the product of your dreams, there is the next stage. It’s time to get out of your comfort zone and find people to try out your prototype. Find 100 people to promote your prototype. Be sure to get feedback from these people to whom you send your product prototypes. All this feedback will allow you to see the shortcomings and weaknesses of your prototype better.
Despite that only a few entrepreneurs are successful on their first try, that doesn’t mean they won’t be successful. Know that the possibilities are not in your favor. So, be prepared to do everything from scratch. You may need to try the same thing over and over on the road to success. When your prototypes start to make sense, you are halfway to. Now, find another person at this point to devote himself to this project. Finding a good partner will be very useful for your startup. Hire a lawyer to make your business official. Then distribute the shares to the partners you find for your startup. Find an investor if you don’t have enough financial resources to implement the first stage for your startup. While looking for investors, you have to continue to bring your business to life.
Start your business when your product is more or less ready to use. However, if the main features of the product are not ready for use, they are of no value. Some of the important features for your product are additional features, better interface, faster usage, and other optimizations. Always follow the users who use your products and be in continuous interactive communication with them.
What Does Success Mean to You?
Regardless of how many times you should start your business from the beginning, you have to start over without daunt. If users are using your products over and over again, you have created something valuable. Your first goal is to reach a thousand users. This number may not seem like a lot, but your first 1000 users will show you your product’s weaknesses.
Paul Graham advises startups to grow at least 5% per week. If you maintain this level of growth, you will have 25 million users in 4 years. In other words, you will be one of the biggest startups. From this point on, you may either offer your company public or sell it to another company. You may also move on by convincing your investors that a larger money flow is coming. Think about what kind of trace you want to leave in the world with your startup.
After starting your startup, you should pay great attention to market research. %45 of failed startups fail because of not being able to provide the product or service the market needs. A lot of startups fail because they cannot accurately identify the needs of the market.
The team is one of the most important building blocks of establishing a startup. A good team means building a good company and doing good work. Investors also know how important this fundamental building block is. That’s why they often decide whether to invest accordingly. Teams important to startups are those who can:
- Be able to work in harmony.
- Be able to produce creative ideas.
- When necessary, be able to get out of the complex environment they are in.
Living in the Future
Many people live in the present or the past. It’s pretty easy to think about what’s successful right now and ways to mimic success. This is thinking through simulation. While it’s a valid way of thinking, it’s not the right way to start a big startup. Big startups are built on two kinds of thinking. The first is the obvious and difficult one, like Elon Musk’s SpaceX. The second one is not obvious and still difficult, like Uber. If you don’t see the obvious and difficult, it’s called Schlep Blindness. SpaceX was an obvious consideration. Because NASA, the only organization that could send people to Mars, didn’t have a plan to send people to space. So, this idea was an obvious one. You may think this is impossible because it is obvious and nobody else has done it. However, you can see that the human race may colonize space if you live in the future. Most likely, we will find a way to leave this blue planet.
With UberPool, things are a little different. The idea was two people travel from almost the same point to almost the same point in a period. This idea was not obvious. It requires at least three assumptions. Indeed, this is a really difficult thing to do. You have to collect and store an enormous amount of data about where people were going inside the city. Analyzing such data has become possible only with today’s technology. But Uber thought about it when it first launched in 2009. They were living in the future.
FAQs About Starting a Startup
In a crowdfunding platform, entrepreneurs can do:
They may promote their products or services online.
They may reach more potential investors for the products they have developed.
Startups are focused on finding solutions to issues that were not studied before. That’s why R&D is almost an integral part of startups.
Some of your investors may invest in your startup on a short-term basis. At this point, your startup’s fund manager may keep short-term investors away from your startup.
A due diligence report helps you attract more investors as it will increase the credibility of your startup.
Angel investor’s goal is to develop these projects by providing financial support to newly formed and promising projects. When a business idea with high return potential comes to the implementation stage, it attracts the attention of the angel investor.
Shortly, a Guide to Starting a Startup
Startups are one of the most common concepts in today’s business world. Startups are different from entrepreneurship. The first stage of starting a startup is to have a good business idea. However, more important than that is to be able to bring this idea to life. If you have taken the necessary steps to bring your business idea to life, you are halfway to the road. Now you need to find an investor to move your business further. You may use crowdfunding platforms to attract the attention of investors.
Also, the due diligence report increases the reliability of your startup in the eyes of investors. In our article, we explained in detail questions of what is a startup company and how to start a startup (if you want to start something else here’s our article on starting a digital marketing agency). You may do the SEO optimization of your business website to promote your startup to a wider audience. In this way, your business website may rank higher in search engine results.