The creation of new companies is possible thanks to entrepreneurs. The growth of entrepreneurship has been remarkable in the last decade: a business idea is carried out as a viable employment alternative with a promising future. In this sense, the Startup model is highly demanded and increasingly known socially and economically.
A young company that starts to develop can be considered as a Startup. It usually has a strong link with the technology sector: Internet and new technologies are the scenario in which this type of company grow, seek funding and business opportunities.
Defining a business idea
When as a student, I first asked a classmate to write my paper for me, even for money, he refused, but two days later offered to make me a business on it. Thus, we made an essay base from which we could easily write a paper ourselves. Access to this base was by subscription. So a logical question arises – how to start a startup?
The first thing you must identify is a solid business idea. This main factor will set the company on the road to success, but it is not easy to transform a simple idea into a real business concept.
To achieve this, it is essential to specify the following issues:
- The product offered for sale or service offered.
- Differential element of the product with respect to its competition.
- Public to whom the product or service is addressed.
- Reasons why customers would buy the product or hire the service.
- Competing companies.
Creating a startup from scratch makes it necessary to be very clear about the business concept, so it is essential to determine it clearly before continuing with the process.
After deciding on one of the different ideas for creating a startup, it is necessary to carry out a market study with experts. The analysis requires a qualitative and quantitative evaluation of the market itself, thus analyzing its size, value, and volume.
Other determining factors in the study are buying patterns, customer segments, competitors, and other influential players. At the end of the market study, you will know what you have as a business and what you are up against. You will recognize your Startup’s values and strengths with a well-defined business objective.
Here you can learn some tips for this step:
- How to do market research.
- How to classify market segmentation.
- How to make a market segmentation.
- To specify a value proposition.
Once you understand what a startup is, you may go through the processes to build one. In this process, the value proposition is very important, that is, the company’s differentiating factor that makes it better than the competition in the same sector.
The value proposition is fundamental for the customer in deciding which product to buy or which service to contract. It is the element that marks the company’s entire business strategy.
Delimited customer segment
Creating a startup without money is within reach of very few entrepreneurs. It always requires an initial investment, either from the person who brings the business idea or from a partner. It is also important to address a specific target audience to offer the product or service correctly.
The business strategy requires a clear delimitation of its customers. Defining the Startup’s audience helps create the message to attract consumers after studying and researching the market in detail.
Whether young or with years of experience, any company needs to build a business model linked to a brand. This is one of the most important keys that answer how to create a successful startup.
In the case of startups, they compete in a very complicated market with large, medium, and small brands. To gain a foothold in the market, they must exploit the company’s own identity with transparency. The brand is defined by consumer perception, so it is necessary to establish a concrete work policy, a reflection, study, and visibility of the Startup.
Some tips on how to choose the name of my brand: forming an optimal team
Another aspect to consider on how to found a startup is the available work team. Surrounding yourself with the best professionals, both knowledge and dedication, will make it easier to manage the company in its early stages.
Trust among workers and loyalty to the business idea facilitate the construction of a united, consolidated, and future team.
Minimum Viable Product Development
The Minimum Viable Product is the first work project of the Startup. It is a concept closely linked to new companies and, to achieve it, a series of protocols must be fulfilled. In this way, the Minimum Viable Product is achieved in less time and with all the guarantees.
From this product, the time, costs, and suitability for the target audience are estimated. The Minimum Viable Product is an essential step in discovering how to build a startup of the future.
Validation of the business model
One of the keys to creating a startup step by step is to validate the business model. By correctly validating the different hypotheses on which the company is based, a high risk of building the business with false perceptions is avoided.
In this sense, the goal is to design several experiments to validate acquisition channels and a viable business model. These tests will force you to make some changes to the model to adjust it.
Establish funding needs
Finding funding for a startup is not easy, but it is possible. To start the business project, raise money through one of the following formulas:
Seed Round: this is the initial funding, based on the knowledge and trust of the entrepreneurs, with actors such as family members or a close environment.
Bank loans: obtaining a bank loan is difficult to obtain. To do so, it is necessary to have a viable business plan with very positive results.
Business Angel: based on private investors, i.e., financing after the Startup’s initial financing. With a detailed study of the initial numbers of the business, you will have the best presentation to obtain an investment of this type.
Crowdfunding: it is one of the most effective forms of financing for startups. It is a collective Internet financing through crowdfunding platforms that offer a space where projects and their respective needs are added. Users are the ones who provide the capital that makes possible the achievement of these projects.
Once you get the funds, make sure you find the best pay stub maker to distribute part of those funds to your employees.
Networking and key partners
Networking is considered an essential factor for business development to be enhanced. As for a startup, it becomes an essential resource because great opportunities are obtained.
Networking defines an idea and space with the opportunity to meet professionals, new contacts, and more business opportunities.
Visibility and attracting investors
Events, conferences, and training services to contribute to networking. Any place and time are suitable to do this type of task, make a business model known, attract new investors, and give more visibility to the service, product, or brand of the Startup.