Let’s start with a question: what exactly do you associate the word “startup” with? Recently, this word has become insanely popular. But let’s be clear: a startup is a business. Just started from scratch and usually dwell on the internet.
And since the laws of business are the same for everyone, then the trial and error methods of every novice businessman will be repeated and intersected. If you decide to become an entrepreneur and give up the relatively quiet life of an employee, the main thing is to determine the level of risk and responsibility that you are ready for in the event of a possible startup failure.
In this article we will try to reveal how to start a profitable startup, how to build a successful business and what are the steps that you should follow.
Identify the problem and test the idea
A startup that has no goal and no understanding of why people should pay for it has very little chance of being successful. But the views of the founders can be very different from the facts. Marketing research helps you avoid mistakes. At the first stage, they can be carried out through social networks, asking friends and acquaintances. But you shouldn’t trust the results 100%. Consider the rule of Steve Jobs, who argued that people may not know that they need a product before it is presented to them.
Draw a portrait of an ideal client
This rule will help you understand for whom you work and what this person needs. The target audience is a broader and at the same time vague concept. To please the goal, you can only visually present the buyer of the service: Taylor Davis, 40 years old, income is above average, candidate of sciences, etc. Make sure to have a clear picture of your future audience.
Understand the selected market segment and evaluate competitors
To do this, you need to take into account the first 2 rules (this will allow you not to overestimate the market) and spend time researching. You need to answer the question: what makes your idea stand out from the competition and why the client should turn to you. For a more professional look, you can turn to the experts. Many of them are willing to share their knowledge for free.
Make sure to have a financial model
Create a financial model, which is a single document, where all the variables in monetary terms that affect the profitability of a startup are collected. This will give an understanding of how much money is needed for further development, for how long the available funding will last, and what profit can be obtained with the existing business model. However, you need to remain flexible and understand that in the case of startups, it is unlikely that the business plan will be executed exactly. The realities of modern business are unpredictable, so founders must remain flexible in making decisions and following the rules.
Prepare the presentation
A lot of startups learn to tell their idea in 30 seconds. You need to clearly define what your idea is, who it is aimed at and what is needed to achieve the goal. This rule will help the creators to clearly understand the essence of the project, and it is also useful for conversations with investors – they do not always have enough time, so a project summary should catch on so that a potential sponsor makes an appointment for the next meeting.
Establish a few rules and act according to them
This does not have to be a whole set, it is enough to outline a few key principles that must be strictly observed by all project participants. Rules help us to stick to an idea and go in the direction of its realisation. Don’t forget to explain all your rules to your employees. They must understand and accept them. Don’t overdo it. Unjustified strict rules will not lead to anything good.
Team is very important
Pay attention to team building, which is the main asset of the company. It is important to be able to motivate employees, explain how and why there are certain rules in the company, as well as delegate responsibilities. Also, communication between employees and with them is one of the main components of any successful business. A well-functioning intranet should be one of your first business goals.
Learn from your mistakes
Successful entrepreneurs argue that mistakes are an incentive to improve a project, not to abandon it. Any deviation from the initial plan due to unforeseen circumstances allows you to better understand the selected area, target audience and business processes, and any rules already established can be adjusted in accordance with the real state of affairs.
Consider scaling the idea
You need to have options for how a startup can develop in the future. To follow this rule, you need to answer a question: Will it be possible to successfully sell the second one after the first batch of goods? And if not, what needs to be done to change that?
Lack of people, ability, money, experience, poor star disposition, terrible karma are excuses. You must clearly understand that your intuition is a litmus test of the unconscious, which must be trusted uncompromisingly. And what are you waiting for? Finish reading such articles and just take action. Good luck!
Morgan Rose Elliott graduated marketing from The University of Sydney. Hobbies include yoga, reading, home renovation. Rookie blogger who loves writing about business and lifestyle equally. She is happily married, stay at home mother of three.
Twitter account: https://twitter.com/MorganRoseElli1