How Do You Found a Startup?
Many people dream of founding their own business. If a business is built from scratch, it’s called a startup. Even though founding a startup isn´t as complex as one might assume, it takes a lot of preparation and knowhow to become successful and to meet legal stipulations. In fact, there are five steps that founders shouldn´t forgo when they’re eager to finally get started with their very own company.
5 Steps for Success
Following these five steps will help new founders follow a structured approach. Planning ten steps ahead isn´t just challenging, but can also cause entrepreneurs to lose track of the golden thread leading towards success.
Of course, the founder´s budget is crucial for a successful company start-up, which is why it deserves an extra section in this article. But even if prospective founders are still unsure about their business idea, it can be smart to grow more capital as early on as possible. Many founders claim to have multiplied their capital by investing in binary options. They´re easy to understand, because they have a clearly defined risk and only two possible outcomes – either you multiply your deposit or you lose it. Visit Binary Options Brokers Europe for more detailed information.
It All Starts with a Good Idea
Successful businesses are always created around good ideas. Hence, a good business idea is the very base of any prospective startup. In order to create a strong target group, it’s good to create a product or service that will solve a certain problem that many people deal with. In fact, the product should be good enough to convince people to pay for it.
As a founder, you should make sure to come up with a product that can be produced in a cost-efficient manner – only then will you be able to sell it for a price that prospective customers will be willing to pay.
Industry Research and Initial Paperwork
A good business idea is the cornerstone to build your business on. But if there’s already a strong supply of the same or a corresponding product on the market, it can be hard to stand out. That’s why, in this step of the process, it’s important to identify your competitors and to find your personal unique selling point (USP) – if possible.
Many niches are big enough to host various providers of similar products. Competition per se isn’t a reason to discard your business idea, but you definitely must be aware of it. If you decide to proceed with your idea, it’s time to get started by registering your startup with authorities.
A Concise Business Model Canvas
The business model canvas is basically a proven business plan template that sums up nine important components for your business plan:
- What makes your product or service valuable, and why?
- Who are your partners and what interests do they have?
- What about production, costs and logistics?
- How can you set up your customer service?
- Who´s your target group?
- What resources will need to be operated?
- What about distribution and communication?
- What business expenses are you expecting?
- How much will you need to charge for your product or service, and how will customers pay?
Securing Capital, Time & Resources for Growth
Depending on how cost-intense development and production are, you´ll need a financial booster in order to get started. Founders can apply for a loan from their bank or seek support from so-called business incubators – investors that usually ask for a fair company share in exchange. The more capital you bring into the startup, the easier it usually is to increase it.
Create a Team of Like-Minded People
At this point in the process, it might be time to hire people. Founders should go for employees that can represent them and the brand they work for. Particularly at the start, it’s crucial to find like-minded people on the same wavelength – they can keep the startup from burning out. Digitization makes it possible to hire remote employees and to implement a paperless office.